Why You Should Diversify Investment Portfolios with Trust Deed Investments
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Why You Should Diversify Investment Portfolios with Trust Deed Investments

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Investing is not one-size-fits-all and when it comes to building your investment portfolio, customization is crucial. Investing should be tailored to your budget and priorities. 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.

According to an interview with investment professional Tony Robbins in Fortune, there are various investments which have the potential, diversification, and the possibility of growth. In order to Diversify Investment Portfolios, Robbins explains that investors would do well to consider some of the investments he puts in the “risk bucket”:

  1. Equities (e.g., stocks, mutual funds, indexes, exchange-traded funds)
  2. High-yield bonds (e.g., junk bonds)
  3. Real estate (e.g., rentals, spec homes, first trust deeds, commercial real estate, real estate investment trusts)
  4. Commodities (e.g., gold, silver, oil, coffee, cotton)
  5. Currencies
  6. Collectibles (e.g., art, wine, coins, automobiles, antiques)
  7. Structured notes with partial principal protection

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.

Here are some advantages to trust deed investing according to Patch of Land:

  • Higher Returns than the typical investments like CDs, Bonds, Annuities
  • Tangible asset providing a secured investment
  • Investment terms are often relatively short
  • A passive investment option that generates monthly income.

Tony Robbins explains how to use your investment capital without putting all of your eggs in one basket:

The key to a good night’s sleep is knowing that your investments will not only survive unstable markets, but will continue to grow in the long term, no matter what the economic conditions. By allocating your investments between the Security Bucket and the Risk Bucket, you hedge your bets against market volatility, which is unavoidable. And even in the worst-case scenario, where your Risk Bucket flatlines, you still have enough life in your Security Bucket to help you continue on your way to financial freedom

Unlike a mortgage, a trust deed investment involves the borrower, a lender, and the trustee. The third entity in trust deed investing, the trustee, holds the legal title to the lien on behalf of the lender until the loan has been repaid. In the case of a foreclosure, the trust deed investor takes possession of the home. While a mortgage would go through a judicial foreclosure, a trust deed goes through a non-judicial foreclosure. In the case of a mortgage, the borrower would have a right of redemption up to two years after the foreclosure date but this is not the case with trust deeds. Miami trust deed investments can be a great way to earn solid returns and diversify.

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.

While the stock market can be volatile, investors can 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.

If you’re interested in making a profit from Miami trust deed investments, we may be able to help you.

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