Four Reasons Why Smart Investors Choose Trust Deed Investments
Smart investors choose trust deed investments because they’re safe, fast, and profitable. Trust Deed Investing is when investors invest our money in Trust Deeds secured by real estate. Basically, the investor becomes the bank and they can earn a much higher interest rate than a conventional bank. In the current economic climate, savvy real estate investors are purchasing properties at foreclosure sales for bargain basement prices, refurbishing these properties, and reselling them for a profit. Here are a few reasons why you should consider investing in trust deeds:
Speed – Hard money loans are, by nature, short-term loans. This means that you will have the opportunity to try a new investment out without locking your capital into a long-term investment.
Control – You get to choose how and where to invest your money, how much you’ll charge for interest, and the terms of the overall loan. You can also choose to invest with your self-directed IRA in order to make passive income from your retirement funds.
Safety – Trust deed investments are secured by real estate which means that, in the event of a default, you will own the home and can sell it in order to recoup your investment. This extra security should help give you some peace of mind.
Transparency – Due diligence is important for any kind of investment but it is incredibly important when it comes to looking for a partner. The hard money lender should provide you with the data and information on the trust deed investment before you invest. This information will help you make the right decision when it comes to choosing a deed of trust. When a trust deed is structured properly, you can make a steady stream of passive income.
Experienced trust deed investors should feel secure in their trust deed investment because it is real estate based. They can negotiate the interest rate, the length of the loan, the late fee, the default interest rate, and the fees. You can always feel safe when it comes to trust deed investing because a trust deed investment is a secured investment. This means that there is an assurance that your money will be in good hands. In the event of a default, the borrower is required to surrender the property to the investor and the property can be sold in order to recoup the initial investment.