Why Every Good Trust Deed Investment Starts with a Good Broker
Category : Buying & Selling Tips
Most investors will complain that their retirement portfolios are under performing. Since banks stopped lending back in 2008, many investors are diversifying their retirement portfolios by investing in trust deeds on real estate. If these investors aren’t knowledgeable about real estate, trying to get into real estate so late in life may be a mistake. This is why many investors are looking for a good broker to help them find the best properties and borrowers, to make a loan against a piece of real estate that will yield higher returns. This is what is called trust deed investing.
A trust deed investment is essentially making a loan on a piece of real estate exactly like a bank would. The difference is the property type and the borrower. A trust deed investor, also called a private money lender, is making loans to experienced real estate investors who have a track record and experience buying and selling investment properties. The properties are usually income-producing assets, which make for a relatively safe place to park your cash for a short duration. But again, trying to invest in trust deeds on your own is risky, this is why you need a good broker.
Private money lenders are able to get 9%, and as high as 11%, annual returns on trust deed investments. Savings accounts pay from 0.2% to 1.05%. Money market deposit accounts are paying 1.25%, while high yield internet checking accounts are paying 2-3%. CDs are offering 1.85% while World Currency CDs can earn you returns as high as 3 to 4%.