Why Investors Choose Trust Deeds
- Attractive Yields: Consistent returns that often outperform traditional fixed-income investments.
- Security You Can See: Every investment is backed by a promissory note, recorded deed of trust, and title policy—all in your name, providing you with a tangible sense of security.
- Passive Management: Professional loan servicers handle collections and reporting, so you can rest assured that your investment is in good hands.
Flexible Investment Options
- Invest in whole loans or fractional interests alongside other investors as tenants in common.
- Start with as little as $50,000 and scale up based on your goals.
Example:
A $500,000 loan might include:
- Investor A: $100,000 (20%)
- Investor B: $50,000 (10%)
- Investor C: $200,000 (40%)
- Investor D: $150,000 (30%)
Diversify for Stability
Spread your capital across multiple trust deeds to reduce risk and enhance returns. Each loan represents a different property, and your portfolio stays balanced.
Risks You Should Know
- Foreclosure Complexity: Fractional investors must act together if a Borrower defaults.
- Limited Liquidity: Expect to hold your investment until the loan matures.
- Market Risk: Property values can fluctuate, even with substantial collateral.
Best Practices for Success
- Work with experienced brokers who understand compliance and investor protection.
- Review disclosures carefully and know your rights as a fractional investor.
- Diversify across multiple loans to spread risk.
- Plan for illiquidity—invest funds you won’t need immediately.
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Fractional trust deed investing combines security, flexibility, and strong returns—all with professional management. Whether you’re looking to diversify your portfolio or generate passive income, this strategy can help you achieve your financial goals and open a world of exciting possibilities.