Here’s What Makes Trust Deed Investments Better Than Investing in Rental Property
Investing in real estate is always a good idea but there are many reasons that make trust deed investments better than other kinds of real estate investments. If you are looking for an opportunity to invest in real estate but do not want to deal with the hassles of dealing with tenants, maintenance, and the general difficulties of being a landlord, trust deed investing is a great option.
Still not convinced? Here are just a few reasons why trust deed investments is better than investing in a rental property:
Trust deed investments are safe.
Experienced trust deed investors should feel secure in their trust deed investment because it is real estate based. They can negotiate the interest rate, the length of the loan, the late fee, the default interest rate, and the fees. You can always feel safe when it comes to trust deed investing because a trust deed investment is a secured investment. This means that there is an assurance that your money will be in good hands. In the event of a default, the borrower is required to surrender the property to the investor and the property can be sold in order to recoup the initial investment.
No management hassles.
As stated above, trust deed investors are free from the responsibilities of being a landlord. This is because they are sampling funding a real estate investment instead of buying it themselves and managing it. When it comes to owning a rental property, there are screenings for tenants, repairs, maintenance, and taxes. With trust deed investments, you can skip all of those responsibilities and still generate a steady stream of passive income from the interest rate until the loan is paid back.
You can expect predictable returns.
Before you make the investment, you and the borrower agree on the terms of the loan including the interest rate. The borrower must then pay you the interest rate each month until the loan is paid back. This provides the investor with predictable returns. In the event of a default, the borrower is required to surrender the property to the investor and the property can be sold in order to recoup the initial investment.