Trust Deed Investing – What Wall Street Doesn’t Want You To Know

If you’re planning to invest your hard-earned money into something valuable, here’s an overview of a possibility with real potential: deed investing.

Today, there are several avenues in which investors can invest their money: stocks, bonds, and mutual funds. However, there’s one investment your broker doesn’t want you to know about: deeds of trust. With a little research, now is a good time to diversify your retirement savings and search for deeds of trust.

Have you ever heard the term, you become your own bank? Well, by investing in Trust Deed that’s exactly what you’re doing. This type of investment can offer high returns with low risk. They are similar in function to traditional mortgages. The main difference is that a typical mortgage involves only two parties, a borrower and a lender; while a deed of trust involves three: a borrower, a lender, and a trustee. The trustee is a third party who holds legal title to the subject property on behalf of the lender until the loan is paid in full. In case of default, the lender can take possession of the property. People can invest in deeds of trust either by making a loan outright or by purchasing an existing promissory note.

An investor may sell or assign his Deed of Trust if he wishes to liquidate his investment before the full term. Deeds of trust are not a mortgage-backed vehicle. And they are not listed on the stock market. Instead, it is a way to participate in making a real estate loan available to a group or company that needs financing. Deeds of trust may also be for loans made for other purposes, but where real property is used as collateral and to secure performance of non-loan contracts. Deeds of trust are the most common instrument used to finance real estate purchases in Alaska, Arizona, California, Colorado, Idaho, Illinois, Mississippi, Missouri, Montana, New Mexico, North Carolina, Texas, Virginia, and West Virginia. ; while most other states use mortgages.

Investments in deeds of trust are not insured by the FDIC or any other government agency, and hardships such as economic conditions and borrower default may cause part or all of the investment to be lost. If a borrower files for bankruptcy, it could affect the foreclosure process and cost investors large amounts of money in resulting legal fees. However, you can limit your risk by investing only in First Deed Trusts. If a breach occurs, a court must first consider the owner of the first link. Since you are in first position in the trust, you will be considered first and will have priority over subsequent claims.

So what is the benefit to you? Typically a higher fixed rate of return and the loans are backed by real estate; make them an extremely attractive investment alternative. If this article has interested you, please contact me to discuss how you can legally invest in trust deeds with your own retirement funds.