- non-performing notes
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.
- Big Daddy Dennis Hard Money Lender
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