San Diego Real Estate is a great place to start when it comes to Trust Deed Investments. Trust Deed Investing is when investors invest their money in Trust Deeds which are secured investments backed by San Diego real estate. Basically, the investor becomes the bank and they can earn a much higher interest rate than a conventional bank.
Here’s how it works:
The lender offers the borrower a higher than normal interest rate. The hard money lender finds an investor who wants to loan money on the real estate that the borrower wants. The hard money lender puts the two together then draws up the loan documents then the borrower and the lender are bound together through the trust deed.
The hard money lender arranges financing for the buyers who are putting down a sizable down payment which will be financed by the lender instead of a bank. Investing in San Diego Real Estate trust deeds is an excellent way to earn a consistent passive income monthly. Property values are low and exceptional deals are available in San Diego. Because of the credit crisis, many banks are simply not making credit readily available which is where the trust deed investors come in.
Because trust deed investments don’t require the outright purchase of an investment property, some investors choose to only buy a portion of the deed. In expensive markets in California such as the San Diego Real Estate market, this can be a great option. The fact that trust deed investing is so flexible makes it incredibly popular for investors who are interested in investing in real estate but don’t want to go through the hassles of buying, renovating, and reselling. Savvy real estate investors who choose property carefully in San Diego can expect big returns. When working with a reliable hard money lender, the process of trust deed investing is easy and rewarding.
Trust deed investors should consider investing in San Diego Real Estate because it is the second largest city in California by population and it is growing at a healthy pace. There is a growing demand for property with a growing population and it will continue to rise throughout 2017. The rising demand in addition to the increase in rents suggest favorable conditions for San Diego investors.