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With
dramatically less volatility than the stock market,
trust deed investing is a popular alternative
investment vehicle for those seeking capital preservation
and double-digit yields. A trust deed, nearly
synonymous with a mortgage, is a loan to a borrower
using real property as the collateral. With high-equity
positions in real estate, TD investment yields
typically vary from 10% - 17% depending on risk,
security, lien position, and more. Trust deed
investments are backed by an experienced management
team, offer multiple exit strategies, and range
in participation amounts from $3,000 well into
the millions. These investments can be a bridge
loan of only a month, or could last years with
the option to compound monthly or quarterly payments.
Generally, TD investments can be structured two
ways - individually, or as a fund/pool.
Benefits
of investing in trust deeds through a fund include:
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Security
through diversity - instead of owning one
trust deed, an investor owns a share of a
pool with multiple TDs |
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The
benefit of dollar-cost-averaging, with loans
coming in and out during differing market
conditions |
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The
option to collect or compound (re-invest)
payments, further increasing the annual yield |
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Relative
liquidity, and can be available as early as
six months after initial investment |
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Immediate
absorption, and the funds are working for
you at all times |
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Usually
qualified to accept Individual Retirement
Account funds |
Benefits
of investing in individual trust deeds include:
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Having
your name on the Title of property |
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The
benefit of choosing which properties to invest
in based on terms, location, loan amount,
expected payoff date, credit of the borrower,
and more. |
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The
ability to invest with others in the same
specific property - fractional participation |
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Short-term
investments, sometimes as short as 30 days. |
Current
TD Investment Opportunities Available:
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Fund
I
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Expected yields of 16% - 18% annually and
equity participation
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Deeply discounted 1st and 2nd position notes
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Value added through positive cash flow and
increasing asset value
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Fund
II
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Expected yields of 9% - 12%
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All first position TDs
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No debt, no leverage
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Please
contact us for more
information, and we will gladly arrange a time
over the phone or in person to further discuss
these opportunities and answer any questions that
you may have.
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