What is a Trust Deed investment?
A Trust Deed, also known as a “Deed of Trust”, is a document recorded on a specific property or group of properties with the county recorder’s office, encumbering the property(s) with a loan. A Deed of Trust is the document that secures the collateral against the Promissory Note. An Investor, or a group of Investors, may fund a loan on real property (real estate). Upon execution of the documents, the Investor will then own all or part of the loan and will receive interest according to their prorata portion on the loan. Typical Trust Deed investments will yield an Investor between 10% and 16% annualized, distributed on a monthly basis until the loan is paid in full. Loans do not generally carry a pre-payment penalty. Q: What are the benefits of investing in Trust Deeds? A: There are several benefits to investing in Trust Deeds. First, the security of the investment is real property (real estate). Unlike stocks, commodities or other volatile investment vehicles, Trust Deed investments ar