Trust deeds are little-known generators of exceptional long-term returns at a relatively low risk. Known variously as a “mortgage,” a trust deed or deed of trust denotes a formal pledge of a particular realty parcel as security for a specific monetary debt.
All terms of properly executed trust deeds constitute a contract that legally binds all parties thereto. Trust deeds are also fully negotiable instruments that may be traded as freely as paper checks.
Creativity + Negotiability = Trust Deed Profitability
Full negotiability forms the basis of phenomenal trust deed investment profitability. Suppose, for instance, a savvy speculator acquires the right to collect $200,000 from a seriously delinquent mortgage debtor for $80,000.
Despite the virtual certainty of imminent default the trust deed buyer gets a virtually guaranteed short-term gain from a foreclosure followed by immediate trust deed resale to a like-minded investor for $100,000.
Immediate Gratification vs. Long-Term Gain
Real estate trust deeds also provide peace of mind for investors seeking long-term security rather than quick riches. An initial capital outlay of $10,000 USD to fund an ambitious investment realty enterprise can yield multiples of this relatively modest investment in the form of a monthly income stream that continues for several decades. Just think if you were getting money from your health insurance providers for investing. Wouldn’t you do it?
Sterling trust Deed Investment Success Exemplar
In an effort to bolster her ailing retirement fund, Susie Q becomes a hard money lender. $8000 lent at 10 percent for 10 years yields a monthly cash infusion of $105.72 equaling $12686.40 – a whopping 50 percent return. If Susie’s really smart, she’ll parlay that profit via depositing it into a high-yield real estate investment trust with a consistent annual growth rate of 15 percent. After a decade of tax-deferred interest earnings, Susie’s retirement fund has grown to $29,100.39 – over treble her $8,000 starting position.
Whoever said that playing with numbers cannot be profitable uttered a falsehood. Time spent to investigate the best ways to manipulate historical data for concrete financial returns is well spent.