What is the benefit of investing in a mortgage pool vs. direct trust deed lending?
A. Diversification and Management are the two key benefits. Risk is spread out over a multitude of trust deed loans rather than a limited number of loans. The mortgage pool manages collections, disbursements, foreclosures when necessary and all accounting including federal and state compliance. The fund does all the work.
Related Questions
- How do we handle the situation where the Seller is doing an Exchange and they will be carrying back a note and deed of trust or mortgage?
- If a person is added to title using a quit claim deed, are they added to the mortgage or deed of trust?
- What is the benefit of investing in a mortgage pool vs. direct trust deed lending?
