We do lots of Deed of Trust investments for our own accounts as well as manage liens/note for others, and average above the 10%  but like David C. points out, its all about turning your money.

Forgot to mention...He has outstanding mortgage balances on all of them.

I was told by the agent they couldn't turn water on because there is an outstanding balance of $800+ on the account. 

If you are looking to get a better return while having a possible big upside, you should check out tax liens and trustee sales.

The previous primary residence was converted into a rental property and a lien was recorded against that rental property for the HELOC. 

In a chapter 7, it is possible that the 2nd lien was stripped correct?

How did that 2nd lien work?

If you go his route then you will put a lien on your own property.

. - Evictions:  2 Records (one in 2009 Civil filing with $0 amount, and one in 2010 Civil Judgement $1890 - both by the same property mgmt group -- Lien/Judgement Filings: 3.

The home was vacant but the homestead exemption was not removed and was later realized by the tax department, and penalties, late charges and interest were levied and a lien was filed.