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Investment Information: Trust Deed Investing Benefits


Investment Information: Trust Deed Investing Benefits

What are trust deed investing benefits? Trust deed investing is a great way to make passive income from real estate investments without any of the hassles. With a trust deed investment the investor is acting like a bank by lending money to a borrower and the loan is secured by real estate. The investor is able to earn a steady stream of passive income while securing those funds with the underlying real estate asset. Here’s why you should Start Trust Deed Investing:

Lower volatility

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.

Secured by the property

Investing in assets like stocks or bond, there is no physical aspect of the investment. With trust deed investments, you are investing in real estate which is a physical and tangible asset. Investing in real estate is always a good idea because real estate will always be worth something. Piece of mind can be illusive when it comes to investments but trust deed investors can rest easy lenders knowing that their investment capital is secured by real estate.

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.

Consistent cash flow

It’s simple—you make an investment, you and the borrower agrees upon what the interest rate will be and then you collect your payments every month until the loan is repaid. Trust deed investments offer an attractive yield on invested capital. If the borrower defaults on the loan, the property goes to you and you can sell it to recoup your investments.

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