Investment opportunities are everywhere, but there are some that aren't as crowded as others. One of the best ones is trust deed investment. Here we'll talk about what they are and how they can benefit your bottom line.
With investing, everyone is looking for the same thing — a way to use your money to passively make more money. There are tons of ways to do this. Banks will give you a percentage in exchange for docking your hard-earned cash with them. The return is miniscule, but so is the risk.
You can put your money into stocks. This way, your fortunes are tied to a company's (or companies) performance. It's a gamble: it could pay off big if you sell at the right time, but you can also lose everything just as quickly. Smart investing can mitigate the risk, but only to a degree.
What is a Trust Deed Investment?
Trust deed investing has been around for a long time, but it's still a bit under the radar. Here's how it works in the most basic sense — you take your money and lend it to a borrower who buys real estate and offers the deed as collateral. You get payments with interest every month. Or, if the borrower fails to pay, you get the property. Think of it this way: you're the bank.
You're probably already seeing the advantages, but here's why this type of investing can be a good idea for some investors:
- You are always in control.
- You get a healthy interest rate from the borrower; usually anywhere from 10% to 29%
- You're investing in a real, physical property, not something intangible.
- You collect your payments at a regular interval (i.e. monthly).
- The borrower puts up collateral, ensuring that you can't lose everything.
- Properties are insured by hazard insurance, meaning acts of God, like natural disasters, can happen and your investment is still safe.
- Encumbrances, defects and leins aren't an issue because everything is covered by a title policy.
Finding a Trust Deed Investment Opportunity
Trust deed investment opportunities are around, but it can take some digging to find the good ones. You can try to rustle one up on your own, but logistical and legal issues can get hairy. Level 4 Funding has all sorts of experience in this realm. If you're looking to invest, we can find a deal that maximizes profits and minimizes risk. Give us a call today!
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.
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