Trust deed investments are a loans that is provided to requested individual, and is backed by real estate collateral. Loans are paid back with interest at regular intervals, and ultimately at the principal on the loan maturation date. Investors invested in this type of loan are secured by the value of the property.
Benefits of a Real Estate Trust Deed Investment
When investing in real estate trust deeds, typically the interest rates are paid by borrowers are higher than traditional bank home loans. Incentives to a trust deed investment includes, a quicker turnaround time, easier access to money and a simpler loan structure. While the borrower will obtain a quick and easy loan, the investor will receive the benefit of a higher interest rate. Other benefits for the investor includes:
- Monthly high interest (up to double digits) and loan principal payments every from the borrower or the designated servicing company
- Hold the 1st trust deed to the property from the beginning of the loan until it is paid back
Real Estate Trust Deed investing provides great return rates backed by real property. However, it will require you to have an experienced lender to back you. Be well informed prior to making any decisions regarding real estate trust deeds. Contact a local investment specialist to obtain more information on your investment options.
