Appreciating RE works with individuals, private entities, pension plans, self-directed IRAs and solo 401(k)s who WANT to earn higher returns and build a future. It is encouraged to diversify investments. One way to do this is by investing in Trust Deeds. Investing in real estate along with a variety of your other investments helps manage the risk in your portfolio. The rationale behind diversification contends that a portfolio with different assets can on average yield higher returns and lower the risk than having an individual investment strategy.
Similar Advantages to a Bank – Trust Deed Investing
When you invest in trust deeds you are essentially the lender. You are making money the same way banks make their money. The money you’ve deposited in the bank that is earning, about 0% to 2% will be lent out to people like us for about 5% to 8%. This gives the bank a much higher profit with our money. These loans are collateralized by a promissory note and secured by a Deed of Trust that is recorded with the County. Our rates are negotiable and once you start investing, we will provide you with comparable data and/or an Appraisal from an independent licensed appraisal company. This will show you the value of your investment and it’s marketability once it has been repaired (or After Repaired Value (ARV)). All of your transactions will be funded and coordinated directly through a licensed, bonded and insured Title and Escrow company. They will handle getting the Title Insurance, Hazard Insurance, promissory note and recording the Deed to Trust with you.
Real Estate Trust Deed vs Stocks
Title Insurance Protects You…
Title Insurance protects your loan with an extended ALTA lenders title policy which insures that the title holder or owner has valid title to the property being transferred to the borrower. This also protects against any other title defects. You will receive a copy of the preliminary title report “Prelim” for your review.
Hazard Insurance – Insured for the Life of the Loan
As a lender, you will be listed as the Additional Insured or Loss Payee on the homeowner’s insurance policy. You will be over insured or protected for the amount of your loan, any replacement cost to the improvements and possibly more. This will be maintained for the life of the loan.
For more information on how you can gain higher returns through real estate, complete the form on the right.