- Trust Deed Investing
If you want to go ahead and get into the groove with trust deed investments, now is definitely the time! You might already know that a Trust deed investment is very similar to a mortgage. However, let us say, it does differ somewhat. Let’s chat about how.
With a trust deed investment, unlike a traditional mortgage, there are three important people involved with a trust deed investment. Those three people 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 must keep in mind while thinking about a trust deed investment, that you shouldn’t buy a note that is secured by something that one day you might not want to own. We say this because often times, if there is a default, then like we said, as the trustee, there’s a chance that you might end up as the owner of a property that you’re not interested in. That’s definitely not a thing that you want to have happen to you. Just remember this as you go into investing in trust deeds. It’s not fun to own something you’ll never use.
However, a great thing to think about when it comes to investing in trust deeds is something known as non-performing notes for sale. These are also known as ‘secured debts.’ These kind of notes are often sold at a major discount, which many people don’t know. So keep that in mind as you go about your trust deed investment.
Remember, Non-performing notes for sale can bring you in lots of money, even if the non-performing notes for sale never actually performs.
- Big Daddy Dennis Hard Money Lender
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