Deciding on how to invest your money is never an easy task. There are lots of options, each with their own pros and cons. You may be most concerned with how to get the best return on your investment. Trust deed investing is a unique approach that can allow you to diversify your portfolio away from the often-erratic stock market.
Current updates on the real estate market, private money, hard money, and trust deed investing.
Trust Deed Investing
If you’re looking for ways to diversify your investment portfolio, consider funding trust deeds.
While owning property can certainly be lucrative, it comes with a lot of potential downfalls too. What if your apartment complex needs a new roof? Will that office building require more management than you have time for?
In the early and mid-2000s, mortgage lenders were handing out loans without the notion that they would ever be successfully paid in full. This, along with other factors, created the mortgage crisis that followed. In response to the crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act allowed the Consumer Financial Protection Bureau (CFPB) to implement new rules to protect consumers who are borrowing money to purchase a home. One of those rules was the Ability to Repay requirement for closed-end residential mortgage loans.
Investing can be tricky, no matter how financially savvy you are. With the current state of flux in the real estate market, it is no wonder people have questions about whether it’s smart to invest in trust deeds. Here’s the low down.
Private money investing and hard money lending go hand-in-hand as inverse functions. Private money lending is different from a traditional bank loan. Borrowers receive funds from private individuals or groups who are looking to invest money on a relatively short-term basis.