Investing in Trust Deeds - TaliMar Financial

San Diego, CA - Trust Deed investments can be an excellent investment option when seeking consistent monthly income. Unlike owning income property, trust deed investors simply collect monthly interest payments without the hassle of tenants, property managers, or costly property repairs.

Trust Deed investments (view available trust deeds) are loans secured on real estate in which the borrower pays the lender (investor) a monthly interest payment.  There are endless structures to trust deed investments, but the most popular structure is a loan secured on a residential or commercial property for a period of 6 months up to 5 years for a set interest rate. The investor mitigates the risk to their investment by limiting their loan (investment) to below 65% of the value of the real estate and ensuring their loan is secured in 1st position.

Trust deeds typically earn between 8% to 12% annually and are paid in equal monthly installments. Rates (commonly referred to as Yield) are dictated by the "risk" of the trust deed such as higher loan to value (loan amount divided by property value), credit history of borrower, asset type, duration, location, and exit strategy. 

Many mortgage brokers / bankers specialize in trust deed investments. Companies such as TaliMar Financial originate and manage trust deed investments on behalf of trust deed investors.

Like any investment, trust deed investments offer some level of risk. If the borrower stops making payments, the lender (investor) will be required to initiate a foreclosure.  If the value of the property plus the cost of the foreclosure exceed the value of the property, the investor will lose principal.

To learn more about investing in trust deeds, visit TaliMar Financial or contact Brock VandenBerg at (858) 613-0111 x1.