Trust deeds have been around for decades. They provide a high return on investment and are an investment that primarily targets real property. Trust deeds are not affected by market dynamics and offer a fixed return with monthly payments. Investing in a trust deed has a low-risk margin and generates higher yields in fragmented markets. The basic principle is that the investor can purchase a portion of a promissory note by utilizing a secured property loan.
This video explains trust deed investment and how it can diversify your portfolio.
Investing in a trust deed is a versatile practice that allows you to purchase a fractional share or buy the entire loan. You, the investor, function as the primary holder of the deed, and you control your investment. Fractional control facilitates a system where the risk is shared between two or more investors. This minimizes the potential and protects your investment. This process offers varying returns and a high yield that diversifies your risk profile. A loan servicer collects the monthly payments on your behalf and disburses them to various investors. It is a full-proof system that is safe and effective.
