Trust deed investing, also known as lending on trust deeds, has grown in leaps in bounds since 2009. With banks in turmoil in 2009, it prompted a surge in private money lending from 2009 to 2015. So why such interest in trust deed investing, particularly by retirees? What retirees in particular like about investing in trust deeds is that they can receive a monthly interest payment, when other investments don’t pay monthly. Trust deed investors have also enjoyed appreciation of the real estate assets used as collateral for these loans, with prices on the rise since 2009.
What other assets/investments can you think of that provide a monthly interest payment and the return of your principal in 12 to 24 months? It certainly is a hard investment to beat if one has a basic understanding of real estate. What other investment opportunities would you add to this discussion that act similar to investing in trust deeds on real estate?
Posted by Corey Dutton, Private Money Lender
Corey, I thought you were in a bank, LOL, I see you're a HML now, good luck.
You're right about the growth among seniors, most running through established brokerages and REITs, pools on much larger scales than we generally speak of here.
Not sure what you meant by return of principal in 12/24 months that may be through the investment pool, not likely as a note holder unless they are short fused deals.
There are higher yields that can be had from notes other than mortgages, risk and reward need to be understood but auto loans, financing receivables, lease financing and even medical accounts are profitable. Any time a future stream of money is involved, discounts could be applied and assignments made of the income stream. You can even buy expected judgments from law suits!
It's all in the due diligence, mitigating losses and collateral. Good luck :)
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