Trust Deed ROI Insights
Accurate projections founded in objective assessments form the foundation of financial success for savvy trust deed investments. Negotiable instruments secured by solid terra firma have two tremendous advantages:
Certainty: Father Time has consistently decreed that all land values must eventually rise. His injunction makes monetary obligations backed by realty infinitely more secure than other debts secured by depreciating “assets” like autos.
Surety: Rather than unknown variables with indefinite longevity, realty-secured debts represent fixed values of a finite duration.
Consider the following case study:
Struggling Susie decides to boost her retirement fund by investing in trust deed investments. Shortly after, she finds a seriously delinquent trust deed with a face value of $50,000 on sale for just $25,000. Its beleaguered owner is more than happy to abandon a “sinking ship” after receiving monthly payments of $449.41 for slightly less than five years of the original 15-year repayment term.
If the current occupants of the collateralized property manage to cure their default and continue monthly installments for another decade, Susie stands to gain a gross profit of $15,240.44 – a whopping 61 percent ROI. If Susie is forced to foreclose, she instantly assumes ownership of a $50,000 asset.
She may then opt to hold out for even higher profits that inevitable appreciation invariably yields. In the alternative, Susie may bail out for a “mere” $25,000 immediate profit.
Guaranteed Gain = No-Lose Proposition
As the above example aptly illustrates, there really is safety in numbers. Proper mathematical manipulation of known values yields astronomical profit potential for trust deed buyers. Putting the power of these negotiable instruments to work today brings many bountiful harvests tomorrow.
Maximizing trust deed investment profits essentially equates to playing with numbers. Before you take off to bombard local “Pick 3” lotto ticket vendors, take a poignant pause.
The numbers game we mean has no resemblance whatsoever to whimsical wagering on random future outcomes. Rather, the numbers running we refer to involves rational decisions based on historical patterns. So find ways to make money with trust deed investments, and make up the money you give to your auto insurance company!