3 Key Advantages
of Trust Deed Investing
April 15, 2024
By Edwin Asetre
Hello Everyone,
Trust deed investing has become increasingly popular for a number of reasons.
It offers a unique combination of benefits that can be attractive to a wide range of investors.
Here are three advantages that people enjoy when they invest in trust deeds:
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1. High-Yield Returns with Consistent Income:
Forget low-yield CDs and bonds! Trust deed investments offer a chance to earn much higher returns.
Depending on the loan details, you could see annualized returns between 8% and 14%. But the benefits go beyond just high yields.
Trust deeds also provide a predictable income stream through monthly payments, creating a reliable source of income that's perfect for investors seeking financial stability, particularly retirees.
2. Secured by Real Estate without
Landlord Headaches:
Trust deed investing offers the security of real estate without the hassles of being a landlord. Because trust deeds are secured by real estate, you have the peace of mind of knowing your investment is backed by a tangible asset. If a borrower defaults, you can foreclose on the property to recoup your funds.
Additionally, trust deed investing allows you to avoid the responsibilities of property management, such as finding tenants, handling repairs, and collecting rent. This hands-off approach makes trust deeds an attractive option for investors seeking a secure and passive income stream from real estate.
3. Portfolio Diversification with
Tax Advantages:
Trust deed investing offers a compelling combination of portfolio diversification and tax benefits.
By incorporating trust deeds into your investment strategy, you can move beyond traditional stocks and bonds, reducing your overall risk. Real estate, the foundation of trust deed investments, is also considered a hedge against inflation, protecting your purchasing power over time.
Furthermore, the interest income generated by trust deeds enjoys a tax advantage. Compared to ordinary income, it's typically taxed at a lower rate, resulting in significant tax savings for investors.
Overall, trust deed investing offers a compelling option for investors seeking a combination of high returns, diversification, security, and a hands-off approach to real estate investing.
Ready for a Reliable
Stream of Income?
Have Questions? If you are new to investing in trust deeds or a seasoned investor with a sizeable portfolio, our team of experienced, licensed mortgage bankers can help you reach your goals.
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