Make Solid Returns From Miami Trust Deed Investments
Trust deed investing is simply investing in loans secured by real estate. Basically, loans made via trust deed trust deed investments are similar to mortgages, except that along with the borrower and lender, another party is also involved in the process. Miami trust deed investments can be a great way to earn solid returns and diversify.
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.
When structured properly, trust deed investing can provide outstanding returns. According to Scotsman Guide, “In fact, private investments in trust deeds typically have yielded investors returns of between 9 percent and 15 percent annually depending on risk tolerance. Those investments have experienced similar or larger losses as compared to investments within more-traditional equity and debt markets since the start of the recession, however.”
Experienced trust deed investors should feel secure in their trust deed investment because it is real estate based. 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 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.
Trust deed investments are not about credit scores and ratios. For these kinds of deals, insider knowledge, relationships and potential value is more important than the credit score assigned by a computer.
Investors who develop a structured strategy will find that trust deed investments can offer them an opportunity to earn solid returns on relatively low-risk collateral while providing borrowers with a lenient funding source in difficult times.
If you’re interested in making a profit from Miami trust deed investments, we may be able to help you.