What You Should Know About Miami Trust Deed Investments
Trust deed investing is all about investment diversification and opportunity. If you want to get involved in Miami trust deed investments, you should investors should seek expert advice before they start. Before getting involved, there is a lot of information that investors should know such as real estate valuation, project management, law, and financing. Partnering with competent professionals will reduce the risk and makes trust deed investing less time consuming.
A trust deed investment is investing in specialized loans secured by real estate that are provided from the private sector. Miami trust deed investments can be a great way to earn solid returns and diversify your portfolio. Trust deed investments are one of the methods that the wealthy use to make much bigger returns on their investments than anything you can get on the open market. Surprisingly, there’s a lot of competition from borrowers who are willing to pay these kinds of rates to lenders – and an increasing number of investors who are interested in funding them. If structured properly, trust deed investments offer an attractive current yield with relatively low risk.
While banks have tightened their lending standards, private money lenders are much more lenient. But why should investors take deals that banks would not take?
Private money lenders do not necessarily have to follow the same regulations that banks follow since they’re not federally insured. The limited supply and high demand results in a high yield for trust deed investors.
According to Scotsman Guide, “Given the dislocation of today’s capital markets, many commercial banks are not equipped to provide bridge loans on strong collateral, even to customers who would have qualified previously. As such, investors can now provide private loans secured by quality collateral to strong borrowers with less risk than afforded previously.”
Local trust deed investments are actually more like old-school investing. Trust deeds are built on trust – just like back in the day, when it was common for deals to be sealed with handshakes and there weren’t so many lawsuits.
Why are Miami trust deed investments so lucrative?
There is so much potential in Miami because of job growth with thousands of jobs being added to the market. Also the Miami real estate market brings residents from across the world and has become a hub for small businesses. This continues to drive up the prices of residential real estate in South Florida.
According to Stephen Nostrand of NAI, “Being a global port differentiates us from a lot of major cities in the United States. We have invested here to allow the Panama ships to come in. Now we are seeing a growth in global shipments of products from around the world. We also have a huge airport operation here. Miami is a hub, not just connected south to Latin America but east to Europe. Those connections have made this a global Mecca.”