10 Reasons Investors Choose to Invest in Trust Deeds
There is no denying that these individuals possess the skill set and work ethic that is required to be successful in the fix and flip business.
These individuals may not recognize the amount of time and money it takes driving each and every one of the homes on their "prospect" list before they find the "cherry" they have been looking for.
Some may have even experienced the heartbreak of losing that "Dream" deal to another one of those Multi-Million dollar hedge funds that most likely never even drove an hour and half in traffic to see the place.
My advice to those who want to make money in today's real estate market and don't have the time or energy it takes to find the deals: BE THE BANK.
When you invest in Trust Deed Notes, you become a private money source for real estate investors who purchase, refurbish, and resell real estate.
Private lenders build positive working relationships with rehabbers who have a proven formula for success in the fix and flip business.
Invest, enjoy a 9-10% annual return on that investment, and become more aware of what it takes to become a pro in the fix and flip arena.
Who knows, you might find the note buying business to be more lucrative, less headaches, and just as rewarding.
Here are the top 10 reasons Investors choose to invest in Trust Deeds:
- These investments offer an unusual combination of high returns and consistent cash flow with a secured investment.
Investors receive monthly interest payments on their invested capital as they would with a fixed income investment or money market fund, but the yields are typically higher. - They are secured by property, so the risk is low.
- Yields are higher compared to other fixed income securities.
Real estate collateral is often viewed as more tangible than stocks and equity investments. - Trust Deeds also offer a vehicle for investing in real estate without the need to manage property.
They're an excellent way to diversify a portfolio. - Relatively secure and predictable, and returns beat inflation significantly.
- Monthly growth rebuilds wealth.
- Simple and transparent.
Unlike publicly traded real estate related securities - e.
g.
, CMO's, MBS's, REIT's - Trust Deed Investments are straightforward and easy to understand. - Trust Deed Investing is like Real Estate investing without the hassles of ownership - and with the benefits of relative liquidity.
- Trust Deed Investors can diversify into real estate without acquiring that expertise - or learning the hard way.
- Trust Deed Investors can diversify across multiple RE projects with relatively small investments.
the return on my money, or the return OF my money? So if you agree that Trust Deed Investing is for you, don't take unnecessary risks in order to obtain the highest rate of return without doing your due diligence.
Be careful not to gamble away your hard earned dollars in order to achieve a number that is just one small part of the equation.
Choosing the right private money lender is crucial.