Here’s what you need to know about investing in trust deeds.
What are trust deeds? What does it mean to invest in trust deeds? Today we want to answer those questions and break down trust deeds for you.
To put it simply, trust deeds are the collateral instruments that are recorded against a piece of property. So when you invest in trust deeds, you’re investing in real estate; however, instead of investing as a buyer, you’re investing as the bank. In other words, you become the bank or lender.
“There is no other investment that can compete with a trust deed’s consistent cash flow.”
There are some nice benefits to investing in the debt side of real estate. For one, you don’t have to worry about home maintenance or landlord duties. No more 3 a.m. phone calls about a leaky roof. Instead of collecting rent from a tenant, you’re collecting interest from an owner. These payments are made on the first of every month, which creates a very consistent cash flow for our investors.
There is no other investment that can compete with a trust deed’s consistent cash flow. Not only that, but since the underlying property is the collateral, they are very secure investments. If you are looking to replace income or transition into retirement, trust deeds are one of the best investments you can make.
If you have any questions about trust deeds, reach out to me via phone or email. I would love to help you!
NMLS ID: 307420
BRE: 01191560