Who can you trust? What can you trust? What is trust able? Well, that's a good trusting question. How about a Trust Deed! Yes, with all the mortgage roller coaster rides that the general investor has been going through, or should I say, up and down on, one thing that looks attractive. . . is a Trust Deed.
A trust deed, also known as a deed of trust, is a document used to secure debt on a home acting as a mortgage. A trust deed is recorded as a lien on real property. A deed of trust acts like a mortgage but there are differences between a mortgage and a deed of trust.
A trust deed is used as security for a loan on real property, and the specifics regarding the loan are written in a promissory note. A deed of trust is then documented at the county recorders office to legally notify the world that the property has now been pledged to secure a loan.
There are three parties involved in a trust deed. The first is the Beneficiary which is the investor-lender-note holder. The 2nd is the Trustor which is the borrower. The third is the Trustee which is a third party selected by the investor who has the legal power to act on the investors behalf and holds the title until the note has been paid. The deed of trust recorded against the borrowers property title is what secures the lenders investment.
When making an investment in a deed of trust, the Trustor makes the property transfer, in trust, to the Trustee. The Trustee then holds the conditional title on the behalf of the beneficiary and then one of the following occurs: The trust deed will be returned to the borrower once they satisfy all of the terms and conditions that were outlined in the promissory note or the property will be put up for sale if the borrower defaults which is also known as foreclosure. In many cases, if the borrower defaults there is actually more profit in the investment. A good management company will pass along most of this additional return to the investor.
A few of the benefits of trust deed investing are high returns, a consistent cash flow, and capital preservation while owning an investment that is secured by real property. Trust deeds offer a great way to earn a higher rate of return and still be secured by an asset to minimize risk.
Trust Deeds are worth trusting. . . Trust Me!
Trust Deeds can be obtained through Eqlibrium Investments - Trust Deeds or read about Trust Deeds