There are a number of ways in which investors can invest their money, the stock market, savings bonds, deeds of trust, to name but a few. There is always some degree of risk involved when making an investment, however, trust deeds happen to be one of the safest investments to make in today’s market.
Unlike other investments, trust deeds enjoy the following secure advantages: 1) a trust deed is secured by actual property – homes, buildings and land; 2) the investor receives higher than average rates of return due to the fact that borrowers are willing to pay a higher interest rate because private investors are flexible with their loans; and 3) borrowers are generally a good risk to take because if the borrower fails to pay the loan they could lose their property and the loan amount is exceeded by the real property value.
There are many advantages that investing in trust deeds offers you as an investor:
1. The interest rate paid by the borrower is typically higher than rates paid by banks.
2. Investing in a deed of trust generates a monthly income that is established through interest payments.
3. Trust deeds can be traded
4. Trust deeds sell fairly easy because they are liquid
5. When you invest in a trust deed, every month that goes by increases your protection because the loan amount continues to be lowered by amortization.
This book has been designed to give you a good idea of the many golden opportunities that await you should you choose to invest in deeds of trust. Here are some of the details you can learn:
• Retirement planning with a trust deed investment
• The difference between trust deeds and other investment types
• Legal issues for investors
• Loan underwriting
• How to obtain title insurance policy
• Collection and distribution of loan payments
• Lien priority
• Information regarding loan documents
• Important facts about escrow to keep in mind
• Loan enforcement
• Pitfalls for investors to watch for
With all of the knowledge you will obtain from this book you will gain the confidence you need to know how to protect your investment, choose the right broker and provide an excellent product that offers you a high rate of return at a risk you can afford.
