Investing in trust deeds is one of the best ways to earn a very high return on your investment, while at the same time making sure your investment is safe, secured by the value of the property, all while receiving a monthly check based upon the amount of your investment.
Smart investors pad their retirement accounts with Trust deed investments because they normally earn 10% -15% annually on their investment!
So, what is trust deed investing? Good question.
Trust Deed investing is the loaning of money with real estate as collateral. In California, most loans against Real Estate are called "Trust Deeds," after the name of the legal instrument used to pledge their security. With expert guidance from Nnew Haven Financial, anyone can successfully invest in trust deeds. This contrasts with most other investments where extensive study and years of experience may be necessary before you can invest with confidence. Trust Deeds are safer than most other investments of comparable yield because the risks are identifiable, as well as the procedures necessary to counter them. Many investors, especially retired people, also enjoy the relatively small effort needed to manage the investment once their money is in place.
The typical trust deed investor is a person looking for a competitive return on their investment. The interest rate the borrower pays is generally higher than the borrower would pay at a bank. The investor in turn, receives a higher return on his investment. Additionally, the money you loan is secured by the borrowers' equity in their real estate. The security, the good return, plus the monthly cash flow, make trust deeds and excellent investment vehicle.
At New Haven Financial, we receive many calls everyday from borrowers, realtors and mortgage professionals who are looking for private money for a real estate transaction. It is our job to fund loans with our investments investments, then after the loan is funded, we collect the payment each month, and send our investors a check every month.
What is so special about our trust deed investments is that we normally only provide loans in the Los Angeles area. That way, before we ever lend our investors money, we typically see the property, interview the borrowers, and have a professional appraisal completed by a licensed real estate appraiser.
Our job is two-fold, to make sure we give our borrowers a good loan at a rate that they can reliably re-pay, and also make sure our investors receive a high return on their investment is the safest way possible.
What makes trust deed investing with New Haven Financial safe?
The basic promise of safe trust investing is to make sure that the property (collateral) is sufficient in case the borrower does not make their payment, and we have to repossess the property. Although this is rare, it does happen. However, we do have a healthy safety net, in that we only lend on low loan to value properties. Loan to value is simply the loan amount divided into the value of the property. Here is an example: a client calls and needs a loan for $ 100,000 on a property values at $ 300,000. In this scenario, the loan to value is 30%. This means that if the borrower were to default on their payment, there would be approximately $ 200,000 left over. Is this safe? You bet it's safe. That is what makes trust deed investing so attractive to both experienced investors and new investors as well.