Learn To Be A Fix & Flip Investor

Saturday, May 2, 2020

How Does a Trust Deed Investment Differ From a Mortgage?

If you have been in the mood for investing in trust deeds, then now is the time to do it. Why wait? Investing in trust deeds can be a great thing.

Trust deed investment is similar to a mortgage. Though, it does differ because a trust deed investment has three primaries in the Trust Deed Investment Company transaction and they are the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. Remember though that in a trust deed investment, if the borrower does in fact default then trustee takes back the mortgaged property.

If you plan on investing in trust deeds, then you don’t want to buy don’t a note for something you would never actually want to own yourself. Collecting properties that aren’t of your caliber isn’t a wise choice. You don’t want to accidentally be tied down to something you don’t like. So when it comes to investing in trust deeds, you may want to remember that owning a property is exciting, but make sure you’re making the right choice.

Additionally the great thing about Investing in trust deeds is that non-performing notes for sale are often sold at a major discount. However, there are many people who do not know this. Don’t be one of them! Get those great deals.

Remember also that Non-performing notes for sale is really just a nick name for ‘secured debts.’ This sounds scary but it isn’t. They can bring you lots of money. Just make sure you know you’re making the right choice with the non-performing notes for sale property you’re interested in. Yes, it really is that easy.

Does a Trust Deed Investment Benefit You? (Hint: Yes, a Trust Deed Investment Benefits You)

Investing in trust deeds can be wonderful, so don’t put it off.

If you’re confused about a Trust Deed Investment Company all you need to know is that they are similar to a mortgage with a few little differences. For example, a trust deed investment has three primaries in the Trust Deed Investment Company transaction and they are the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. Remember though that in a trust deed investment, if the borrower does in fact default then trustee takes back the mortgaged property.

You should really consider investing in trust deeds because it could mean a lot of money for you in the future. Just remember that you don’t want to buy a note for a property that you aren’t really sincerely interested in. Nobody likes to be stuck with something they don’t like, especially if they’ve actually paid quite a bit of money for it. Keep that in mind when you are figuring out your trust deed investment. Make the right choice so you can be happier in the long run.

Investing in non-performing notes for sale is fantastic because you can get these at a huge discount, but many people aren’t aware of the great deals. Make sure that you take advantage of it!

Look into these non-performing notes for sale –or ‘secured debts’ as they are known to some people. Don’t let the name scare you into not making the choice to look into these kind of Trust Deed Investments San Francisco . Your decision could just bring you a lot of money when you want it the most. Good luck on your journey!

What Do You Need to Know About Investing In Trust Deeds?

It is time for you to begin to consider venturing into investing in trust deeds. Why you might ask?

Because Trust Deed Investment Company is a simple thing that could bring you lots of money. While Real Estate Trust Deed Investing is similar to a mortgage, it differs slightly in that with trust deed investing there are three important people in the process and they are the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. However, in a trust deed investment, if the borrower defaults, then trustee takes back the mortgaged property.

When you begin to take the journey into investing in trust deeds, there are some rules you need to abide by in order to keep things easy for yourself. One of the rules you have to consider is never buying a note secured by something that in the end, you wouldn’t even want to own. Just think about how you wouldn’t lease a car you didn’t like. The same should go for properties that you invest in. Think of a Trust Deed Investment Company in much the same way if that helps.

If you’re interested in investing in trust deeds consider perhaps a non-performing notes for sale since they are often sold at a major discount.

Don’t let the name fool you. A Non-performing notes for sale is just another name for ‘secured debts’ and it can bring in a lot of money for you. Even if the non-performing notes for sale doesn’t actually revive its performance, the owner of the note is actually still entitled to the property. Find a trust loan broker today and they can set you up with a non-performing note for sale today around your local area.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2019 Level 4 Funding LLC. All Rights Reserved.

Non-Performing Notes for Sale: Your Trust Deed Investment

Non-Performing Notes for Sale: What Your Mortgage Loan Broker Can Do For Your Trust Deed Investment

You may have already heard of trust deed investing. A trust deed investment is like a mortgage but it differs slightly because there are three important people in a trust deed investment; the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. However, in a trust deed investment, if the borrower defaults, then trustee takes back the mortgaged property.

When it comes to investing in trust deeds, the main thing to remember is to never buy a note secured by something you wouldn’t eventually want to own. That’s not to say a property you wouldn’t want to eventually live in; that is different. Simply something you would want to own is something to think about when it comes to investing in trust deeds because a home might be great but it may not be in the right location or have enough rooms for your family.

Another great thing to remember about investing in trust deeds is that non-performing notes for sale are often sold at a major discount.

If you haven’t heard of a Non-performing notes for sale, another name for it is just ‘secured debts.’ If this is a confusing term, it really just means good news for you and your bank account. Remember that even if the loan fails to revive its performance, the owner of the note is actually still entitled to the property. So your investment in non-performing notes for sale can be an excellent alternative to the often-stressful foreclosure auctions. Find a trust loan broker today to quickly find a non-performing note for sale today around your local area.

Your Trust Deed Investment Will Benefit From Non-Performing Notes for Sale

There’s a chance that you already know a lot about trust deed investing and you’re interested in finding out more. Well, you have come to the right place. You see, a trust deed investment is similar to a mortgage in a way, however how it differs is that there are three elements to a trust deed investment that aren’t in a mortgage; the borrower or the trustor, the lender or the beneficiary, and the trustee. You might already know that the Trustee is the person who actually purchases the property. You should also understand that if the trustee is paid as promised in the contract, then they won’t have any claim to the property. However, in a trust deed investment, it is know that if the borrower does end up defaulting, then trustee takes back the mortgage and therefore, the property.

When it comes down to the thick of it, investing in trust deeds can be great, you just need to know that you must never buy a note secured by something you wouldn’t eventually want to actually end up owning. Really think about where that house you want to flip is or who that new project is going to benefit. Having a trust deed investment means taking responsibility for these kinds of decisions.

Moreover, one more fantastic thing to keeping in mind about investing in trust deeds is that non-performing notes for sale are often sold at a major discount to people.

Here’s the lowdown in case a Non-performing notes for sale confuses you; it’s just another name for ‘secured debts.’ Don’t let this term trip you up because it is actually a great thing for you and your bank account and your future money. Remember again that even if the loan fails to revive its performance, the owner of the note is actually still entitled to the property. Your investment in non-performing notes for sale is a good one and it can be an excellent alternative to a foreclosure auction.

Understanding Your Trust Deed Investment

If you have been thinking about investing in trust deeds, now is the time. Trust deed investment is like a mortgage however, it differs slightly and that’s because there are three important people in a trust deed investment; the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. However, in a trust deed investment, if the borrower defaults, then trustee takes back the mortgaged property.

The thing to keep in mind when it comes to your investment in investing in trust deeds, is that you must never buy a note secured by something you wouldn’t eventually want to own. You wouldn’t consider investing in a product you don’t like, so think of a trust deed investment in much the same way. When it comes to investing in trust deeds remember that a home might be great but it may not be in the right location or have enough rooms for your family so you need to be careful.

Moreover, a great part about investing in trust deeds is that non-performing notes for sale are often sold at a major discount, which is fantastic for your bank account.

A Non-performing notes for sale is just another name for ‘secured debts.’ Don’t let this term confuse you because it really just means that it can bring you lots of money. Even if the non-performing notes for sale eventually fails to revive its performance, the owner of the note is actually still entitled to the property. Your most likely discounted investment in non-performing notes for sale can be a brilliant alternative to the stressful nature of the foreclosure auctions. Find a trust loan broker today to quickly find a non-performing note for sale today around your local area.

Getting Your Trust Deed Investment Together

Trust deed investing always seems like it might be daunting, but let us assure you that it could be one of the best things you’ve ever done for yourself. If you need help understanding a trust deed investment, let us help you a bit. The easiest way to understand a trust deed investment is that it is similar to a mortgage in a way, however it does differ when it comes to three specific elements; A trust deed investment includes lots of people in the investment such as the borrower or the trustor, the lender or the beneficiary, and the trustee. You might already know that the Trustee is the person who actually purchases the property. One more thing to keep in mind is that if the trustee is paid as promised in the contract, then they won’t have any claim to the property. However, that being said, in a trust deed investment, you should know that if the borrower does end up defaulting, then the trustee would take back the mortgage and furthermore, the property.

Another important thing you must keep in mind about investing in trust deeds is that non-performing notes for sale are often sold at a major discount to people and this can be a great benefit for you.

When it comes to Non-performing notes for sale, remember that it’s just another name for ‘secured debts.’ This term can be a little confusing but it’s actually fantastic. Secured debts are great for you and your bank account and furthermore, your future money.

The Three Main Ingredients of the Trust Deed Investment

Now is the time to keep investing in trust deeds in mind. Why? Because Trust deed investment is like a mortgage. That being said, it does differ slightly. Let us tell you how. With a trust deed investment there are three important people in a trust deed investment; the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. Remember though that in a trust deed investment, if the borrower does in fact default then trustee takes back the mortgaged property.

One more thing to keep in mind is that if you are investing in trust deeds, don’t buy a note secured by something you wouldn’t really even want to call your own. Think of it this way, you would not consider buying a product that you did not like. Don’t buy a property you might not want to own! It’s as simple as that. So, when it comes to investing in trust deeds, you may want to remember that a property might be great but it may not be in the right location or layout for you- so that’s something to think about.

A great thing about Investing in trust deeds is that non-performing notes for sale are often sold at a major discount. Many people don’t know this, which means they are missing out on some fantastic deals.

Non-performing notes for sale are just another name for ‘secured debts’ so don’t get confused when you hear this term thrown around. It can bring you lots of money. Even when the non-performing notes for sale eventually fails to revive its performance, the owner of the note is always still entitled to the property. Your most likely discounted investment in non-performing notes for sale can be a brilliant alternative to the stressful nature of the foreclosure auctions.

What You Need to Know About Your Trust Deed Investment

What You Need to Know About Your Trust Deed Investment in Non-Performing Notes For Sale

If you’ve been thinking about purchasing the non-performing notes for sale you’ve been hearing about, it might be time to make the move. A great way to make money is to make the trust deed investment a performing note (in the end) that can ultimately be sold for two times what you paid.

Non-performing notes for sale can seem scary because they are accounts where collection attempts on the mortgage have been unsuccessful up until time of sale. If this puts you off a bit, think things through. These non-performing notes for sale are easy to get because many lenders are willing to sell non-performing notes at a loss, which is great news for you, the buyer.

It means profits for the buyer and profits is always a happy word.

Remember, even if the loan fails to fix the performance of the Non-performing notes for sale, the non-performing notes for sale are actually secured debts. That means that the note owner is still entitled to the property. This can be a great alternative to foreclosure auctions.

So go on and contact a trusted loan broker in your area. They will help you find non-performing notes for sale that you can buy so you can begin to make profits.

Just take a look at the mortgage agreements of the non-performing notes for sale that you’re going to purchase and this will help you figure out what you need to do.

In the end, you may find that despite the long wait, a foreclosure might be the easiest thing to do on mortgages that are more than 90 days late on payments.

It is easier to have a foreclosure only because sometimes payment plans do unfortunately fail and then you have to go ahead with the foreclosure process anyway. Yes this process is time consuming with the six weeks to six months timeline. However, when the process is finally over, you will get full legal possession of the property.

What Should You Know About Non-Performing Notes for Sale?

Purchasing non-performing notes for sale is actually one of the best ways you can make money. Think about it, make the trust deed investment a performing note (in the end) that can ultimately be sold for two times what you paid. Everybody likes the word ‘profit,’ and you’ll be hearing it a lot when it comes to purchasing non-performing notes for sale.

Non-performing notes for sale can of course seem like a crazy idea. It seems maybe a little out there to purchase an account where collecting the mortgage has been unsuccessful up until the time of the sale. However, don’t let this put you off because non-performing notes for sales are extremely easy to purchase because many lenders are willing to sell non-performing notes at a loss. This is fantastic for the buyer who is looking for a great deal.

The risk isn’t as crazy as you think it is. The good thing to remember is that even if the loan fails to fix the performance of the Non-performing notes for sale, the non-performing notes for sale are actually secured debts so whoever the owner of the note is will still entitled to the property. This can be a great alternative to foreclosure auctions, which can sometimes be very intense.

Talk to a trusted loan broker in your area to find the non-performing notes for sale that you can buy. Once you take a quick gander at the mortgage agreements, you’ll see what you’re up against. In the end, you’ll see that non-performing notes for sale are among the easiest way to make money.

In the end, you will be happy that you took a chance on the non-performing notes for sale, because chances are, they performed for you.

Time to Purchase Some Non-Performing Notes for Sale

What’s a trust deed investment you can make where you might get two times what you paid in the end? The answer? Those non-performing notes for sale you’ve been hearing about. We think it just might be time for you to take the leap and see if you can get these non-performing notes for sale to actually perform and get you paid.

If the name sounds scary, don’t let it fool you. Non-performing notes for sale are accounts where collection attempts on the mortgage have been unsuccessful up until time of sale. Pretty simple, however, if you need some more information, let us also tell you this: non-performing notes for sale are easy to get because many lenders are willing to sell non-performing notes at a loss, which is great news for you, the buyer.

And isn’t a lower price and a high return such a nice phrase?

The great thing is that even if the loan fails to fix the performance of the Non-performing notes for sale, the non-performing notes for sale are actually secured debts so that the note owner is still entitled to the property. This can be a great alternative to foreclosure auctions, which are difficult to budget for sometimes.

To start the non-performing notes for sale buying process, simply contact a trusted loan broker in your area and they will help you find non-performing notes for sale that you can buy so you can begin to make profits and you can begin to reap the benefits.

There’s no time to waste when it comes to making a profit. Get together with your trusted loan broker and begin to dive into the world of non-performing notes for sale today. We promise that you will definitely be glad you did.

Friday, May 1, 2020

Beginning your Trust Deed Investing Arizona: What To Understand about Investing in Trust Deeds Arizona Investing in Trust Deeds

Deed of trust investing Arizona shouldn’t be so hard that it frightens you. If you manage to do your research and educate yourself about trust deed investing Arizona, then you shouldn’t even have to worry.

Doing your homework can really help when it comes to trust deed investing Arizona since it can be a really confusing time. Know now that trust deed investing Arizona shouldn’t be difficult for you, especially if you do all the research and gain the knowledge necessary before you even begin the process. This knowledge will definitely come in handy later and it is important to be really sure about this financial leap before you process any paperwork.

Where to start, you might wonder? Deed of trust investing Arizona can happen one of two ways: one is that it will be secured by a whole deed of trust, which means one lender/note holder, or it will be secured by a fractionalized deed of trust, which is more that one lender/note holder. Understanding each is important as you begin your trust deed investing Arizona.

Gaining understanding of the trust deed investing Arizona process is going to help you procure the best investment possible. Plus, the more you know, the better you can work in tandem with your mortgage loan broker and the easier your deed of investing Arizona will be!

For example, did you know that you can purchase non performing notes Arizona as your trust deed investment Arizona? Non performing notes Arizona are actually notes that are sold at a discount, unlike performing notes, but they usually get you some high rewards if you’re willing to either rework the note or take back the physical asset. No matter what you decide to do, you can come out a winner when you decide to get into trust deed investing Arizona.

Interested in Trust Deed Investing Arizona? Read Up!

Are you confused about your trust deed investing Arizona? Don’t stress about it. This may just be the best thing you ever do for yourself, but the truth of the matter is, you have to know the facts before you get started. If you’re caught in the middle without any knowledge of trust deed investing Arizona, you may find the process is time consuming.

You don’t have to get flustered about it though. A little bit of knowledge will go a long way and it will show your mortgage loan broker how serious you take this process.

The first thing you should chat with your mortgage loan broker about is how you deed of trust investing Arizona will be procured. In trust deed investing Arizona, there are two different options; you can have your trust deed investment Arizona secured by a fractionalized deed of trust, which means more than one lender or note holder, or you can have your trust deed investment secured by a whole deed of trust, which means that there’s only one lender or note holder and there are different regulations for both.

Keep in mind as well that there are all sorts of different kind of notes you can have, be it performing, sub-performing, or non performing notes Arizona.

Each kind of note offers something different, but non performing notes Arizona do tend to offer the better deal. Why, you might ask? That’s because non performing notes Arizona are typically sold at a much lower price and then from there you get to decide if you are going to keep hold of the asset that hasn’t been paid, but is now in your name or if you are going to rework the note. It’s up to you, but either way, you do get the high reward you’re looking for in a trust deed investment Arizona.

Trust Deed Investing Arizona and The Facts

Where to start when you’re overwhelmed with information about trust deed investing Arizona? That’s where we come in. We can help you with a few essential things to keep in mind the second you decide to go ahead with trust deed investing Arizona so that you have the most successful outcome possible.

Make sure, for one, that you have the best idea of who your mortgage loan broker is before you start the trust deed investing Arizona process. What kind of person are they? How experienced are they? Do they have all the knowledge that you need? Can they actually help you? You want to expect the very best from them during your trust deed investing Arizona, because it can be an overwhelming road to walk down alone.

Furthermore, know the market. You need to know the market value and the equity of the Property before you even start the process of your trust deed investment Arizona. You will find out that your deed of trust investing Arizona is secured by a deed of trust on the Property and that is what you borrow against. Once you can understand this part of the process, remember also that Property is then insured by a promissory note that explains the risk principal and the specific repayments required.

Last but not least, you need to make sure that all your documents are ready to go. In trust deed investing Arizona, you must have all the documents in working order otherwise, you will find the process is long and tedious, but moreover, you have to be able to provide evidence of you securing the loan or purchase of the promissory note. Having everything ready to go is going to make you feel so much better and make your trust deed investing Arizona that much easier.

Keeping the best understanding will help to have the smoothest deed of trust investing Arizona process. Never put off gaining as much information as possible.

Trust Deed Investing Arizona: Everything You Need to Know About Trust Deed Investing Arizona

When you’re about to go into deed of trust investing Arizona, it’s a good idea to research, research, research. Knowledge is power, as they say, and when you know as much as you can about trust deed investing Arizona, it will be easier to get what you need done quickly and efficiently.

You should know that there are actually a few different types of trust deed investing Arizona that you can get into, the first being the performing notes, the second the sub-performing notes, and the third and most reasonable being the non performing notes Arizona.

Non performing notes Arizona are notes that are usually sold at a deep discount and offer you the chance to choose whether you would like to rework the note or simply just collect the tangible asset that is yours if the notes have not been paid, since the notes and the deeds will be in your name. It really is just as simple as that.

Once you have an understanding of trust deed investing Arizona, you will see that the process isn’t as scary as it seems, and in fact, is not only simple, but fast. Having a good understanding of your trust deed investing Arizona will also help to stop any confusion before it even starts, which means you get your deed of trust investing Arizona done even faster.

Taking the time to understand your trust deed investing Arizona will make you feel a lot better about the experience as well as make things easier for you and your mortgage loan broker. But while on the topic of mortgage loan brokers, make sure that you really know the person you are dealing with. It will make the entire trust deed investing Arizona process that much easier. You’ll wonder why you ever waited!

Thursday, April 30, 2020

Risks of Trust Deed Investing

An interest rate of 9% or higher and stable monthly payments sounds too good to be true to some investors. While there are many, many benefits to investing in trust deeds, like any investment, there are also some risks.

The biggest risk is that the borrower will default on the loan. If this happens the trustee will no longer earn interest payments. The trustee also has to foreclose on the home and sell it, which can be a hassle. Finally, if the home is sold for a loss, the trustee will lose his/her initial investment. The easiest way to help mitigate the foreclosure risk is to ensure that you are investing in deeds of trust for properties that are worth their loan amounts. Basically, don’t buy a trust deed on a property that you would not want to own yourself (although you it doesn’t necessarily have to be somewhere you would want to live). Also, make sure that you connect with a trustworthy appraiser to give you a solid idea of the value of the property before moving forward with the investment.

Another downfall of trust deed investing is that your investment is not liquid. If you purchase stocks, for example, you can always cash out and sell them if you need money quickly. With trust deed investing, you are locked in for the investment term. The term can be anywhere from 24 months to over 20 years. You earn interest during this time but you cannot cash out your initial investment until the term is over.

Although trust deed investing does have some risks,

the benefits usually greatly outweigh them.

Since your investment is backed by property, it has real value in case of a default. The property can be sold to recover your funds as long as the lender is also repaid. It is possible and legal in some states to invest in deeds of trust independently. However, a broker can prove to be an invaluable resource in navigating the often complicated world of trust deed investing. Talk with a broker about your specific financial situation to determine if investing in trust deeds is a good strategy for you. A broker can also help you navigate the specific laws and regulations based on the state the property is purchased in.

Trust Deed Investing on a Budget

Smart investors can earn high interest rates with negligible risks by investing in deeds of trust. Before you take this next step in your investment portfolio, learn the basics of investing in trust deeds to decide if they are a good investment for you and your budget.

One little known but high yield real estate investment strategy called trust deed investing can be a critical tool for experienced investors to grow their investment portfolio. Investing in deeds of trust is a specific type of real estate investment wherein the investor, or trustee, invests money as a third party in the mortgage process. The bank or lender loans money to the borrower, the borrower repays the money to the bank, and the trustee invests money directly to the lender in order to act a third party intermediary and hold the legal title to the borrower’s property. The lender then pays the trustee interest for holding the title. Interest rates a generally higher than most other investments at anywhere from 9 to 12 percent.

Not only does trust deed investing yield a high rate of return, it is also a rather low risk investment. The investment is secured by the actual real estate purchased by the borrower. An accurate appraisal helps guarantee that the property is actually worth the money that has been invested in it. If the borrower defaults, the investor’s funds can be recovered by the sale of the property. In some cases, the investor can even take over payments from the borrower and acquire the property without an additional sale. This way there are no escrow fees, additional inspections, or closing costs.

Now that you know the benefits of investing in trust deeds, you are probably wondering how exactly it works and what your role as the investor is. As the investor, you invest money to hold the legal deed to the property. You do not live at the property nor do you have to maintain it, the borrower does this and he/she holds the equitable title to the property. If the borrower makes payments on time, all the trustee has to do is earn interest from the bank for the length of the investment term. Investment terms can cover anything from a few months to several years. If the borrower defaults, the role of the trustee changes a bit. Now instead of just collecting monthly interest payments, the trustee is responsible for selling the property on behalf of the lender. The money from the sale helps pay back your initial investment.

Trust Deed Investing with Limited Resources

One common misconception about trust deed investing is that it can only be done by the very wealthy. This is not true. There are many lower cost options for budgets of almost any size. If you are on a budget, you might consider pooling your resources with a friend. Make sure that you both agree on the property and borrower that you are investing in and you can split the monthly interest payments. This is a way to purchase a larger deed of trust without investing more money. Some brokerage firms also offer trust deed investing pools where you can combine your resources with others to make a larger investment.

In addition, you can look into investing in lower value deeds of trust. Things like cemetery plots can actually be a great deed investment and they are usually less expensive because they are smaller and less valuable than a larger property or house. In some cases and states it is also possible to do partial trust deed investing also know as Fractional Trust Deeds. Basically you would purchase a part of a deed for a shorter period of time like 12 months compared to several years. You can also look into investing in deeds of trust that have been defaulted. This can be a great way to get into trust deed investing but is a very specialized niche. It is usually more risky but the investments are cheaper and often the returns are quite high.

Trust deed investing is a great investment tool to earn high interest rates with little risk of losing money because your investment is backed by real estate.

Make sure to talk with a licensed broker before you attempt investing in deeds of trust. A broker can work with you to find the best loan lengths, terms, and interest rates. He or she can also help you navigate the ins and outs of the specific laws and regulations in your state. Your broker can also help you invest your limited funds in the smartest way possible to earn the highest returns.

Foreclosure and Trust Deed Investing: What You Need to Know

Investing in trust deeds is generally considered to be a fairly safe investment strategy. Like any investment, there are risks, and knowing how to protect yourself and your money is a crucial step in having a successful investment.

Investing in deeds of trust is a great way to earn high, fixed interest without having to do much work. Investing in deeds of trust is a specific type of real estate investment where the investor (now known as a trustee) invests money as a third party in the mortgage process. The bank or lender loans money to the borrower, the borrower repays the money to the bank, and the trustee purchases an interest in the deed directly from the lender in order to act a third party intermediary and hold the legal title to the borrower’s property. The lender then pays the trustee interest for holding the title. Interest rates a generally higher than most other investments at anywhere from 9 to 12 percent. Deeds of trust are a fixed investment so you earn that interest rate over the length of your investment.

Now that you know the benefits of investing in trust deeds, you are probably wondering how exactly it works and what your role as the investor is. As the investor, you invest money to hold the legal deed to the property as was discussed previously. You do not live at the property nor do you have to maintain it, the borrower does this and he/she holds the equitable title to the property. If the borrower makes payments on time, all the trustee has to do is earn interest from the bank for the length of the investment term. Investment terms can cover anything from a few months to several years. Interest is fixed and paid monthly as additional, relatively stable source of extra income.

However, as with any investment there is some risk associated with trust deed investing. The greatest risk is that the borrower will stop making monthly payments. If this happens, you as the trust deed holder, will begin to initiate the process of foreclosure on the property. The trustee has the power to sell the property for the lender. If the property is sold for a loss, the trustee will lose his/her initial investment.

Protecting Your Money during Trust Deed Investing

Although it is rare, defaults do happen and it is important to take every step necessary to secure your initial investment. One of the best rules of thumb is to never invest in a trust deed on a property you would not want to own. This does not mean that you want to live there, but that you could see the benefits of owning it as a rental, or it is in a desirable location, or has some other feature that gives it extra value. You also need to work with a good team that involves an appraiser. An accurate appraisal on a property helps make sure that it can be sold for the value of the loan, should a foreclosure situation arise. As long as the lender can recover its funds, anything left over will pay back your investment before transferring to the borrower.

Another key to protecting your money is to make sure that the property is always covered by a comprehensive hazard insurance policy. Fires, floods, and other natural and man—made disasters happen. If the home is destroyed, and insurance policy will help pay back both the lender and trustee. Make sure that the hazard insurance is current and sufficient on any properties that you are investing in trust deeds for.

Finally, you can help protect your money by always holding the first deed of trust on a property. Some lenders sell additional shares of trusts in the form of second or even third trust deeds. Basically what this does is put you in a line to be paid back in the event of default. The first trust deed holder is always the first to be paid back their investment if the loan defaults. Second and third trust holders often never recoup their funds.

Finding the right broker can make

all the difference in trust deed investing.

Make sure that you are using a broker or firm that knows the ins and outs of trust deed investing. Ask about the team of realtors, appraisers, home inspectors, and other professionals they work with to secure you investment. Also, make sure that they know you are only interested in being the first deed holder on any trust deed investments. Do your research about applicable laws and special circumstances to help protect your money.

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