3 Reasons Why You Should Consider Trust Deed Investing
Why should you consider trust deed investing? Trust deed investing is a great way to invest in real estate while also avoiding the annoying hassles of being a landlord. Why is trust deed investing so popular? It’s safe, flexible, and secured. What’s better than that? Here are a few reasons why you should consider trust deed investing.
Better than bonds and stocks.
Stocks and bonds have been popular investments in the past but due to the current economic climate, that is changing quickly. Those who do not want to both with the tumultuous nature of the stock market have chosen to invest in trust deeds. When structured properly, trust deed investments have relatively low risks since the loan is secured by real estate. What that means is that, if the borrower defaults on the loan, the property becomes yours and you can sell it to recoup your initial investment. Many investors enjoy the relatively minor effort needed to manage the investment once their money is in place.
Traditional lenders have very strict regulations when it comes to approving individuals for loans. If a potential borrower has bad or no credit, it is virtually impossible to be approved. Since it is so difficult to be approved for a loan from a traditional lender, many people are turning to non-traditional lenders. This is where the trust deed investor comes in. This increases the amount of good trust deeds that are available for trust deed investors.
Since trust deed investors receive predetermined payment monthly and the full loan amount at an agreed upon time, the money is not tied up in the investment for a long period of time. Because these investments are generally short term, once the loan has been repaid, you can immediately invest in another trust deed which generates even more income. When structured properly, trust deed investments can generate a steady stream of passive income that the investor can count on.