Investing in Miami trust deeds can be a great way to earn solid returns and diversify. When investing in Miami trust deeds, the investor is buying someone else’s real estate loan, which is secured by a trust deed. When a real estate investor purchases trust deed, they are setting up a relationship as an intermediary between the original lender and the borrower.
Investing in trust deeds provides a steady stream of passive income. Typically, it provides consistent monthly cash flow you can rely on which make it perfect for someone who is interested in investing in real estate but doesn’t want to deal with the hassles. If payments stop, the investor recovers capital by foreclosing on the underlying valuable real estate.
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. Investing in Miami trust deeds can be a great way to earn solid returns and diversify.
- You are the bank
While conventional lending guidelines have tightened, borrowers can look to hard money lenders for financing. When investing in a trust deed, you essentially become the banker to these individuals. You can provide a solution for local borrowers and can earn an above market rate of return on their investment. Investors just need to know where to look to find quality trust deeds. Trust deeds can be found in your own neighborhood.
- Consistent returns
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. Investing in Miami trust deeds give investors control and security. Unlike the ups and downs of stock investments, trust deeds are stable and secured by real estate.
Trust deed investing allows you to pick and choose which kinds of investments you are comfortable with. If don’t think that you have the time to manage a portfolio of trust deeds, you can always consider pooled trust deed investing for a hassle-free investment. The investor can chooses from the loans available, which loan they like, and the amount they would like to fund.
If you’re interested in investing in Miami trust deeds, we may be able to help you.