Trust Deeds Wise Investment
Investors have a variety of options from which they can choose to invest and grow their money. Each one carries its own risks, game plan and category. From the stock market to deeds of trust and savings bonds, investors can decide where they will put their seed money based on what risks they want to take and how well they can plan a strategy. With so many choices and with the uncertain economy, how can investors decide which avenue will ensure the safest and most profitable outcome?
Every investment venture has a degree of risk and yet trust deeds are shown to be the safest of all investments today. Why? Because a trust deed loan is secured by something tangible—acreage, houses and other valuable buildings.
Another appealing advantage of the trust deed investment is the higher rate of return. Private lenders are not constrained by the same set of rules a banking institution imposes. Therefore, loans are more flexible and granted more quickly with less hassle because the private lender has a broader criterion with which to work.
Going one step further, trust deed investments are appealing because the borrower has a great deal to lose if he defaults on the loan. His home and land could be taken away, which is incentive to do whatever it takes to make sure he keeps up with the payments.
Why invest in trust deeds? Like most people, you’re probably looking forward to retirement. To that end you will need to invest in a venture that enables you to take care of yourself and your loved ones when working is no longer desirable. Those who have invested for retirement concur that trust deeds are the most profitable.
At an earned interest rate of 10-15% compared with the 2-4% of a savings account, it becomes apparent that theearning potential of a trust deed investment far exceeds that of more traditional ventures. Not to mention being less risky than stocks and not as stifling as a low yield mutual fund.
Early retirement is an added benefit as well. With a 10-15% interest rate compounded annually, an investor can shave years off the time originally allotted for his retirement because he will reach a comfortable nest egg much sooner.
If you’re still not convinced, there are a number of other bonuses to trust deed investing.
1. On average, borrowers pay more interest than traditional banks.
2. The interest payments of a trust deed generate monthly income.
3. You can trade trust deeds
4. Trust deeds are liquid and therefore sell easily in most cases.
5. Your protection is increased because amortization lowers the loan amount.
No doubt as your knowledge of trust deed investing grows you will appreciate how such an investment will reward you with a high return for your low risk investment.
PF specializes in assisting experienced local developers purchase, and rehab, distressed properties in CT, NY, MA, and RI. PF is currently looking for investors that want to participate in the high returns offered by real-estate investing, without having to deal with the normal hassles involved with managing a real-estate portfolio.
PF offers a 12-15% fixed rate of return to the investor, secured with a first trust deed at an 80% loan to cost ratio.
Interest is paid monthly, quarterly, semi annually, or annually. An annual lump sum interest payment is collected from the borrower at closing, so PF never has to chase the borrower for interest payments.
Loans are typically a 12 – 18 month term, and no loans are made without PF first: personally inspecting the property, and second; receiving from the borrower a secure and verifiable exit.
If you have an interest for yourself or a client please contact Joe Tufo at 925-352-6000.