Investing is not one-size-fits-all and when it comes to building your investment portfolio. Investing should be tailored to your budget and priorities and trust deed investing can help you structure you investments in a way that works for you. If you are looking for flexibility and diversity, you may want to look beyond conventional investments in order to find the best way to use your investment capital and Diversify Investment Portfolios.
Experienced trust deed investors should feel secure in their trust deed investment because it is real estate based. In addition to helping Diversify Investment Portfolios, trust deed investing also allows investors will also find that the terms of the loan can be flexible. They can negotiate the interest rate, the length of the loan, the late fee, the default interest rate, and the fees.
While the stock market can be volatile, investors can Diversify Investment Portfolios and find control in their investment decisions when it comes to trust deed investing. Investors can tailor their investments to their investment objectives and comfort level. Trust deed investments give investors control and security.
Compared to government or corporate bond issuance, individual trust deed investments are relatively small. The limited supply and high demand leads to a high yield for trust deed investors. The fact that there are less risks associated with the investments make Trust deed investments valuable. Trust deed investments usually earn high single-digit annual returns, paid monthly. In some cases, returns above 10% are possible. These returns are very favorable relative to other investment options with similar risk profiles. The risk of losing money in a trust deed investment is mitigated by a built in “margin of safety.”
If a borrower fails to pay their loan, the trust deed investor is protected by the margin of safety. Since you act as the bank, you can foreclose on the property and sell it to recover the investment and past-due interest. Because hard money loans are generally short-term, real estate values are unlikely to change dramatically over the loan’s term. When structured properly, trust deed investments offer an attractive current yield with relatively low risk which makes it a safe investment.