Learn To Be A Fix and Flip Investor: April 2020

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.

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.

Top Three Things to Know About Investing in Trust Deeds

As you may already know if you are on this page, Trust deed investing Arizona is a major financial investment, so it is important that you learn as much as you can in order to have the smoothest deed of trust investing Arizona process. As with anything in life, the more prep work you do, the easier this will be.

The first and most often overlooked step during the deed of trust investing Arizona process is making sure that you have a great relationship with your mortgage loan broker. It’s important to have a firm understanding not only of the trust deed investing Arizona process, but whom you will be partnering with for this investing. Their knowledge will be your knowledge, so picking a great mortgage loan broker ensures that this trust deed investing Arizona venture will go as well as possible. Get a good idea about your mortgage loan broker before you begin any of the steps for your deed of trust investing Arizona.

The second thing you must keep in mind is the market value and the equity in the Property as you begin your trust deed investing Arizona. As you probably already know –or as your mortgage loan broker will tell you- your deed of trust investing Arizona is dependent upon the Property, which is what you borrow against. If you understand this part of trust deed investing Arizona, then you will be able to move ahead. Your property is also then insured by a promissory note that explains the risk principal and the specific repayments required.

A third thing to remember is that the documents you need for trust deed investing Arizona should be put into order and ready as soon as possible in order to provide evidence of you securing the loan. Having everything in order for your trust deed investing Arizona is a great way to show your mortgage loan broker just how series you are about one of the more important financial moves in your life.

Taking Good Care of your Deed of Trust Investing Arizona.

If you are on this website, you probably realize now just how confusing a deed of trust investing Arizona process can actually be. You know now just how important it is to use as a financial stepping stone into the next phase of financial security for you and for your family. With that, it is very important to know exactly what you’re getting into before you actually begin.

Mortgage loan brokers must also service your loan or you and your mortgage loan broker must find someone who is a properly licensed real estate broker or exempt from licensing by law to service your loan.

Your trust deed investment Arizona will be a great way for you to really get that diverse portfolio you have been looking for. It can be difficult to get exactly what you need with only stocks and bonds or even maybe renting out a property, so it is nice to know that trust deed investment Arizona exists. It allows you the freedom to really get into the kind of investing you want to do and make the money you really ought to be making.

Don’t be afraid to find out the kind of trust deed investing Arizona that works for you. There are all different kinds of notes and opportunities for investors, so don’t miss out on what could be a really great opportunity for you and for your portfolio.

If you have a good understanding of your deed of trust investing Arizona services, then you will have the smoothest procedure possible, which is good news for you and for your mortgage loan broker. Learning the most you can about your deed of trust investing Arizona will help you understand the security and laws put into effect specifically to help you through your investing of trust deeds Arizona.

Deed of Trust Investing Arizona and The Facts

You may have noticed by now that a deed of trust investing Arizona is the best way for you to diversify your portfolio, you just might not really know where to start. That’s where we come in to help you. We think deed of trust investing Arizona is one of the best ways to make some high returns on something very low risk, which is very unusual when it comes to making investments. That’s why it is so perfect for you!

Deed of trust investing Arizona is a process that doesn’t leave you worried the way traditional investments such as stocks and bonds do. You never really know which way the market might fall, so taking investments in a company can be scary! Same goes for renting out properties to people you barely know. Deed of trust investing Arizona gives you the freedom not to worry and to embrace the newfound diversity of your portfolio.

Simply figure out the kind of deed of trust investing Arizona that you want in your portfolio and you will see how easy it is to begin investing today. No more worrying about the markets. Just hold on to your deeds and promissory notes and you have some tangible assets to look forward to, one way or another.

Once you are able to have a good understanding of what it takes to get together your deed of trust investing Arizona, you can have the easiest time making money with your trust deed investment Arizona. It’s a great way to make the most out of any kind of financial situation for any sized portfolio! Get more information from us and invest today! It may just be the best thing you ever did for yourself. You’ll wonder why it ever took you so lon

Fractionalized Deed of Trust Investing Arizona: What Should I Know If My Trust Deed Investment Arizona is fractionalized

You may realize that your deed of trust investing Arizona is fractionalized. Don’t let that scare you. You should know that when you start the deed of trust investing Arizona procedure, it will be secured by one of the following: a whole (one lender/note holder) or a fractionalized (more than one lender/note holder) deed of trust. Know right now that is it very important to understand there they are not the same, and in fact, each variation is subject to many different regulations. However, having a fractionalized note is still great for your portfolio.

Trust deed investing Arizona is one of the best ways to make your portfolio diverse and actually productive. So often we can say that we lost money in this ‘dot com’ boom or when the market took a turn for the worst, but the great thing about investing in trust deeds Arizona is that you get to decide where you’ll be investing, which means that you see where the money goes and where it comes back to you.

Investing in trust deeds Arizona allows you to choose who you work with and whether or not you are interested in purchasing any non performing notes Arizona, which tend to sell for a lesser rate but they also always allow for you to have your name on the promissory note as well as the deed, meaning that no matter what, you have a tangible asset that upholds.

As you can see, this is a lot of information about trust deed investing Arizona to gain a handle on, so gaining knowledge is the best way to ensure you and your mortgage loan broker get you the best deed of trust investing Arizona loan possible and have the smoothest experience possible.

Additionally, learning as much as you can about deed of trust investing Arizona will help to stop trouble before it even starts as you will understand the security features and laws put into action for your financial safety, which helps when procuring your trust deed investing Arizona.

Wednesday, April 29, 2020

How Does Trust Deed Investing Work?

In the United States, there are two types of real estate transactions, true mortgages and deeds of trust sale. In a true mortgage sale, there are two parties involved, the bank or lender, and the borrower. The borrower is given the deed to the property he/she is purchasing and the lender has very little security or collateral. A second form of real estate investing is called trust deed investing. This type of investing differs from a true mortgage in that there are always three parties involved, the bank or lender, the borrower and a third party who is investing his/her personal capital in the deed of trust. If you want an investment that pay for college, investing in deeds of trust can be an opportunity to earn high interest rates with low investment risk.

During trust deed investing, an investor acts as a third party during a home purchase transaction. The bank loans the money, the borrower purchases the property and repays the loan, and the investor, or trustee holds the deed to the property. The trustee holds the deed as security to ensure the repayment of the debt to the lending bank and the bank pays the trustee interest for this service.

Trust deed investing boasts high rates of returns on investment and can fit almost any budget. An investor typically earns anywhere between 7% and 12% on trust deed investments. This is significantly more than any savings bonds, savings accounts, and most stock options.

When investing in deeds of trust, make sure you know

your options and how to minimize your risks and maximize your rewards.

Investing in trust deeds is generally considered to be a fairly safe investment strategy because the investment is backed by actual real estate collateral. An investor can literally drive by and see his/her investment. The trustee can also help insure his/her investment in trust deeds by having property appraisals and working with a licensed broker for the transaction. Another way to secure the investment is to invest only in the first position in the deed of trust. The first position ensures that this trustee will be paid first in the event of a default.

Call your broker to add trust deed investing to your child’s college fund portfolio. Start earning higher interest rates with less risk today.

Funding Your Retirement with Trust Deed Investing

(With an ever increasing cost of living, longer life expectancies, and more medical bills, US citizens need to have more saved for retirement than ever before. One investment strategy that can help you earn high interest rates is trust deed investing. Learn more about it here and decide if it is a good method to help diversify your retirement portfolio.)

Smart investors save for retirement. They start early, diversify their funds, and manage their money carefully to ensure that they will be able to live well after they stop working. You are probably doing all the right things, but are you saving enough? According to the Social Security Administration, the average retiree needs at least 70% of their pre-retirement income during their retirement years. If you plan on travelling, eating out, shopping, golfing, and engaging in any other number of activities that are expensive, it is possible that you will need almost 90% of your pre-retirement income. Social Security accounts for about 40%, leaving you with anywhere from 30 to 50 percent to make up for.

Investing money while you are still working is the best way to prepare for retirement. Having a well-rounded and diversified portfolio is one of the best ways to make sure that your money is always working for you. One investment that most people take advantage of is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

Another type of investment is bonds. There are a variety of different types of bonds that can be purchased from the United States government. Depending on the bond type it takes a specified amount of time to mature. Once the bond is matured the government will purchase it back for a guaranteed interest rate. Bonds are extremely safe investments as they are backed by the U.S. Department of Treasury. The main downfalls of bonds are that they earn fairly low interest rates, usually in the single digits and often as low as 2%, and they take a significant amount of time to mature. Bonds are a safe investment but don’t offer very high or timely returns.

A third type of investment that is not as common as stocks or bonds is trust deed investing. Investing in deeds of trust is a type of real estate investment. Basically the investor acts as a third party during a mortgage transaction. He/she buys an interest in the loan that a lender is giving to a borrower. The lender then pays the trustee interest to hold the deed to the property on the lender’s behalf. Interest rates on trust deeds can be as high as 12% and are usually at least 9%.

How Trust Deed Investing Helps the Lender

In order to understand why the bank would engage in trust deed investing, it is critical to understand the two types of mortgages in the United States.

The first type of mortgage is a true mortgage wherein the only parties involved are the bank and the borrower. Either the borrower or the lender holds the legal title to the property they purchase. If the borrower defaults on mortgage payments, the bank has to take judicial action against the borrower by actually suing them in a court of law, regardless of who holds the title. Only after the court has ruled in their favor can the bank take possession of the property via foreclosure. This is a lengthy process and can get quite expensive.

In trust deed investing, the trustee holds the legal title to the property and is paid interest by the bank for doing so. In the event of a default in payments by the borrower, the trustee can take legal possession of the property via foreclosure without judicial action. The bank can then sell the home quickly to recover their investment as well as the investment of the trustee. This is a much shorter foreclosure process and saves the bank money in the event of defaulted payments. Since this makes foreclosure easier and more profitable for the lender, it is in the bank’s interest to secure their mortgage loans with a deed of trust.

With high interest rates and low risk, trust deed investing

is a great way to supplement your retirement savings to earn you that extra 50%.

As with any investment, it is best to use the assistance of a broker to help navigate the ins and outs of investing in deeds of trust. A broker will help you with the specific laws in your state related to deeds of trust and will help you maximize your return and minimize your risk.

Benefits and Downfalls of Investing in Deeds of Trust

Trust deed investing is a specific type of real estate backed investment with a high rate of return. Like any investment strategy is has a specific set of risks and benefits that are crucial to understand before investing your money.

Investing in trust deeds is a specialized type of real estate investing. Unlike doing a fix and flip, or purchasing a rental property, trust deed investing is a much less involved type of investment. In order to understand the basics of investing in deeds of trust, it is necessary to understand the types of mortgages available in the United States. There are true mortgages and trust deed sales.

The first type of mortgage is a true mortgage. This is a real estate transaction involving two parties, the borrower and the lender. The borrower chooses a property to purchase and the lender funds the purchase. The borrower then repays the lender each month including interest for a period of time, usually 30 years. The legal deed to the property goes either to the borrower or lender, depending on state laws and guidelines. If the borrower defaults on payments, the bank must begin the process of judicial foreclosure. This basically means that the lender must sue to borrower in a court of law to prove that the loan is in default. Once the lengthy legal process is over, the lender can sell the property as a foreclosure to attempt to recoup funds.

A second type of real estate loan is a deed of trust sale. In this sale there is still the borrower and the lender who have virtually the same roles. A third party is an investor called a trustee. The trustee purchases an interest in the loan and is given the deed to hold on behalf of the lender. The lender pays the trustee a relatively high interest rate (usually around 9%) to hold the deed. Payments are received each month as an additional sources of income. As long as the borrower is current on payments, there is no more work for the trustee. If the borrower defaults, the foreclosure process is much faster. The trustee holds the legal deed to the property and can sell it as a foreclosure on behalf of the lender. The lender does not have to sue the borrower, it only has to prove the borrower has defaulted to the trustee.

Diversifying Your Portfolio with Trust Deed Investing

Most investors know about their investment options regarding stocks, bonds and some real estate transactions. One lesser known strategy is investing in trust deeds, a specific type of real estate investment that is low risk and high return.

Smart investors know that having a well-rounded portfolio is a key component of successful investing. One investment that most people take advantage of is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

A third investment that can help diversify an investor’s portfolio is known as trust deed investing. In this type of investment, the investor purchases an interest in a mortgage that is given by a bank. The borrower purchases a property, the bank lends money, and the investor (known as the trustee) invests money for the privilege of holding the financial deed to the property. The trustee holds the deed for a specified amount of time from months to years, depending on the terms of the investment. As long as the trustee holds the deed, he/she earns interest from the bank and has almost no responsibilities as long as the borrower is current on payments. Interest rates on trust deeds are between 9 and 12 percent.

Minimizing Risk When Investing in Deeds of Trust

Like all investments, investing in trust deeds does have an element of risk. The main risk for the trust deed investor is that the borrower will default on his/her loan. If the borrower stops making payments, it is then the responsibility of the trustee to sell the property on behalf of the lender. This process is called non-judicial foreclosure. Once the property is sold, the lender takes back its initial investment. If there is any money left over, the trustee is then paid.

If you are interested in investing in deeds of trust, there are a number of steps you can take to insure that you are making a safe investment. First and foremost, make sure that you work with a reputable, established lender. A bank or mortgage broker that has been around for a while with a good reputation doesn’t give out loans to borrowers who are not able to repay them. Of course there are always exceptions, but generally reputable lenders are more selective with their loans than lenders who are just starting out.

Secondly, when you are investing in trust deeds, you can help insure you money against loss by having a fair and accurate appraisal before the borrower purchases. If the property is appraised well then you can be confident of its value moving forward. Then if the borrower does end up defaulting on the loan, you can sell the property for a high enough price to pay yourself back. This is perhaps one of the greatest benefits of trust deed investing because your investment is backed by real estate that has real monetary value, not just company profits like a stock. You can use the real estate to recoup your funds if necessary.

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 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.

Using Trust Deed Investing to Fund Your Child’s Education

Trust deed investing is a little known high yield investment opportunity. With rates of return as high as 12%, it can be a great way to fund your child’s college education.

As a parent, your child’s future is always on your mind. One of the biggest concerns for most parents is how to pay for college. With rising tuition costs, books, housing, and other details, the cost can really add up. In fact, reports from the College Board indicated that the tuition cost alone can be upwards of $20,000 for a four year degree. This is for in-state tuition. This number rises dramatically with out of state schools and private institutions. For most families, this is a number that seems out of reach. However, with the right investments you can grow your money in such a way as to make paying for your child’s college education an attainable goal.

One type of investment that many parents take advantage of is bonds. There are a variety of different types of bonds that can be purchased from the United States government. Depending on the bond type it takes a specified amount of time to mature. Once the bond is matured the government will purchase it back for a guaranteed interest rate. Bonds are extremely safe investments as they are backed by the U.S. Department of Treasury. The main downfalls of bonds are that they earn fairly low interest rates, usually in the single digits and often as low as 2%, and they take a significant amount of time to mature. Bonds are a safe investment but don’t offer very high or timely returns.

Another investment that many parents use is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

A third investment that can help earn funds for college at a very high interest rate is known as trust deed investing. In this type of investment, the investor purchases an interest in a mortgage that is given by a bank. The borrower purchases a property, the bank lends money, and the investor (known as the trustee) invests money for the privilege of holding the financial deed to the property. The trustee holds the deed for a specified amount of time from months to years, depending on the terms of the investment. As long as the trustee holds the deed, he/she earns interest from the bank and has almost no responsibilities as long as the borrower is current on payments. Interest rates on trust deeds are between 9 and 12 percent.

Does My Portfolio Need Deed of Trust Investing ?

If you are looking for a new way to really make your portfolio stand out and be the best it can be, then we think you should start looking at deed of trust investing Arizona.

With deed of trust investing Arizona, you can make money with the lowest kind of risk possible. That’s right, you get a guaranteed return on your low risk investment. That is music to everyone’s ears- but not everyone gets to hear that if they don’t look into trust deed investments Arizona.

Deed of trust investing Arizona is much different than other kinds of investments. For one, this is low risk. Not a lot of effort on your part is needed. You practically get to sit back and watch the money roll right in. How nice for you and your pockets! Trust deed investments San Diego is a great way to add an additional stream of revenue to your income. You will find that part out quickly.

Moreover, trust deed investments Arizona are so much better than the soft traditional bank loans that people can hardly even get anymore. Banks have really kept their purse strings tight lately, and who can blame them? No need to be furious about this either because this makes trust deed investments Arizona that much better for you. You get to help out people in need of money to close their real estate deals.

Additionally, no matter what you decide to do, non performing notes Arizona or performing notes Arizona, you always have an asset to hold on to. There is no worrying about whether or not you might see a return from this investment. With trust deed investing Arizona you always have a form of asset and you never have to stress about it.

Don’t sit around and wonder. Go ahead and look into making your portfolio great with your trust deed investments Arizona today.

Is Trust deed investing Arizona something I should do?

It can be scary trying a new thing. Imagine what it was like for the first person who decided to make cheese or how scared –but excited!- you were to try your first roller coaster. You took a small risk, but you had so much fun that it paid off in the end, didn’t it?

Now imagine that with trust deed investing Arizona.

With trust deed investing Arizona, you have a great way to take a low risk and create a brand new stream of revenue right into your pocket. How great is that? Banks, you might have noticed, have really tightened up when it comes to loaning out money, so people aren’t getting the soft money traditional loans for their real estate as often anymore and that’s where trust deed investing Arizona comes in.

Take a look around the deed of trust investing Arizona world and you will see how great it can be for you. If you are looking for low risk with a guaranteed return then you have found it. Additionally, with deed of trust investing Arizona, you hardly have to do a thing. Invest your money and get your returns. That’s about it. You never have to worry about whether or not you will see a return because no matter what, you will always get something whether it is the title to a new property that you can sell or fix up or the money and interest you were expecting.

You also get to choose if you want a performing note or a non performing note Arizona. Whichever one you get is up to you, but we love that non performing notes Arizona are sold at a huge discount and always result in a great return, so don’t overlook it!

Whichever you choose to do trust deed investing Arizona can be right for you and your portfolio and your wallet! Do not forget about it when you’re looking to make an investment.

Tuesday, April 28, 2020

The Bank’s Role in Trust Deed Investing

A common question about trust deed investing is what is in it for the lender. This is a valid question because banks generally don’t like to give away 12% interest rates for free. In order to understand why the bank would engage in trust deed investing, it is critical to understand the two types of mortgages in the United States.

The first type of mortgage is a true mortgage wherein the only parties involved are the bank and the borrower. The borrower holds the legal title to the property they purchase. If the borrower defaults on mortgage payments, the bank has to take judicial action against the borrower by actually suing them in a court of law. Only after the court has ruled in their favor can the bank take possession of the property via foreclosure. This is a lengthy process and can get quite expensive.

Investing in deeds of trust helps the lender protect their collateral while earning money for the trustee. The trustee’s investment is also protected by the actual physical real estate.

Investing in trust deeds is a high interest, low risk investment strategy. If the borrower pays on time, the investor literally does nothing other than collect interest. If they borrower defaults, the property that the borrower is making payments on helps to secure the trustee’s investment. This is perhaps the greatest benefit of trust deed investing. The investment is actually backed by physical collateral that the investor could literally drive by and see. The investor can also do a number of things beforehand to help secure his/her investment. The investor can use credit scores of borrowers to determine the riskiness of a particular loan. In addition, the property will be appraised to ensure that it can be sold to recover the investment if necessary. A further investment safe-guard is the requirement of all borrowers to obtain sufficient hazard and fire insurance. This protects the investor in the event of the property being destroyed.

If investing in deeds of trust sounds like a good investment opportunity to add to your portfolio, contact a broker that specializes in real estate investments. A broker can help you make the best investment decisions and help you start earning high interest rates with trust deed investing.

The Basics of Trust Deed Investing

Many smart investors incorporate the strategy of investing in deeds of trust as an easy and relatively low risk way to help grow their retirement accounts. With rates of return as high as 12% and real estate collateral, investing in trust deeds can be a good addition to a well-rounded investment strategy.

Trust deed investing is an investment tool that can help many people reach their monetary goals for retirement. It is a useful addition to your retirement investing strategy because it is relatively low risk and low maintenance with a high rate of return. Before deciding to invest in deeds of trust, it is important to understand the basic types of mortgages available and why trust deed investing is a win/win situation for all parties involved.

The first type of mortgage is what is known as a true mortgage. In this type of real estate transaction, the borrower purchases a property with funds that are supplied by a bank or other lending institution. The legal and equitable deeds to the property both belong to the borrower as the owner of the property. This can pose an obstacle to the lender should the borrower default on his/her loan. Since the borrower holds the deed to the property if he/she defaults the lender must go through what is known as the process of judicial foreclosure. This involves the lender obtaining a court order before the home can be sold without the borrower’s consent. This can be a lengthy and expensive process for the lender.

The second type of “mortgage” situation involves a deed of trust. In this lending situation, there are three parties involved, the lender, the borrower, and a third party known as the trustee. The trustee purchases a deed of trust from the lender which gives him/her the right to hold the legal deed to the property on behalf of the lender. Deeds of trust can be purchased for anywhere from $1,000,000 and up. Once the trustee buys the deed, he/she is said to be investing in deeds of trust. Like any investment, the trustee earns interest from the lender. The interest rates earned on deed of trust investments are typically higher than other types of investments. Some investors earn as much as a 12% rate of return on their investment. As long as the borrower continues to pay his/her loan to the lender, the trustee earns money for the term of the investment with no further work.

Trust Deed Investing and Default

The most common question people have before investing in trust deeds, is what happens if the borrower defaults. The trustee has a few options at this point, depending on what state the property is located in.

One option is that the trustee can assume payments and takeover the property. Since the trustee owns the legal deed to the property, he/she can take over payments on behalf of the borrower and the real estate transfers entirely to the trustee. It can now be lived in, rented, or sold as the trustee sees fit.

A second option that is generally less work for the trustee is that the trustee can begin the process of non-judicial foreclosure on behalf of the lender. The lender provides the trustee with proof that the borrower has defaulted on the loan and since the trustee holds the legal deed to the property, he or she can begin the process of selling the property on behalf of the lender without a court order. This is less expensive for the lender than judicial foreclosure. Once the property is sold the lender recoups its funds from the sale proceeds. Once the lender’s debt has been paid, the trustee’s initial investment is also returned.

Once you have decided to invest in deeds of trust there are

several ways to reduce your risks and maximize your returns.

One key feature of a solid trust deed investment to keep in mind is to always hold the first deed of trust on a property. The first deed holder is the investor who is paid first in the event of a default. If you are the second or even third trust deed holder you are putting your investment at a higher risk than the first deed holder is. You can also help minimize your risk by investing in more credit worthy borrowers and modifying the length of your investments. There are lots of different options depending on what state the property is in. Talk with a broker to help navigate the various ins and outs of trust deed investing.

Featured Post

Thursday, April 30, 2020

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.

Although trust deed investing does have some risks,

the benefits usually greatly outweigh them.

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.

Trust Deed Investing with Limited Resources

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.

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.

Protecting Your Money during Trust Deed Investing

Finding the right broker can make

all the difference in trust deed investing.

Taking Good Care of your Deed of Trust Investing Arizona.

Deed of Trust Investing Arizona and The Facts

Fractionalized Deed of Trust Investing Arizona: What Should I Know If My Trust Deed Investment Arizona is fractionalized

Wednesday, April 29, 2020

When investing in deeds of trust, make sure you know

your options and how to minimize your risks and maximize your rewards.

Funding Your Retirement with Trust Deed Investing

How Trust Deed Investing Helps the Lender

With high interest rates and low risk, trust deed investing

is a great way to supplement your retirement savings to earn you that extra 50%.

Benefits and Downfalls of Investing in Deeds of Trust

Trust deed investing is a specific type of real estate backed investment with a high rate of return. Like any investment strategy is has a specific set of risks and benefits that are crucial to understand before investing your money.

Most investors know about their investment options regarding stocks, bonds and some real estate transactions. One lesser known strategy is investing in trust deeds, a specific type of real estate investment that is low risk and high return.

Minimizing Risk When Investing in Deeds of Trust

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.

Using Trust Deed Investing to Fund Your Child’s Education

Trust deed investing is a little known high yield investment opportunity. With rates of return as high as 12%, it can be a great way to fund your child’s college education.

If you are looking for a new way to really make your portfolio stand out and be the best it can be, then we think you should start looking at deed of trust investing Arizona.

Is Trust deed investing Arizona something I should do?

Now imagine that with trust deed investing Arizona.

Tuesday, April 28, 2020

The Basics of Trust Deed Investing

Trust Deed Investing and Default

The most common question people have before investing in trust deeds, is what happens if the borrower defaults. The trustee has a few options at this point, depending on what state the property is located in.

Once you have decided to invest in deeds of trust there are

several ways to reduce your risks and maximize your returns.