Top Reasons for Trust Deed Lending
It is no secret that real estate investment is a lucrative opportunity for investors. With hard collateral and consistent borrower needs, real estate is a great opportunity for investors looking to diversify their portfolios. One way that an investor can get the most out of their capital is a way that often flies under the radar: trust fund lending. With the right borrower, trust deed lending can be a great way to break into the real estate market.
Trust Deed Lending, Explained
Trust deeds are a type of contract that outlines the relationship of the borrower and investor throughout the lending period. It contains things such as the length of lending, interest rate, and the steps taken should a borrower default. Unlike a traditional loan, trust deed lending circumvents the arduous process of a judicial procedure should a borrower close. All in all, trust deed lending can be a lucrative form of investment when matched with a borrower who matches with the investor’s needs.
Top Reasons for Trust Deed Lending
Trust Deed lending has unique benefits in terms of return on investment. With JMJ Funding, investors are matched with potential borrowers for a lucrative collaboration.
- Consistent Monthly Cash Flow: With trust deed lending, investors are guaranteed return on investment in the form of interest. As more risk is associated with this type of lending, investors can expect to see high-interest rates on their investment. This means that investors can expect a high percentage return each month in passive income.
- Safe Form of Investing: Real estate relies on hard collateral in order for funding, meaning that investors do not have the worries of liquid assets. Whereas stock market investment is rife with unpredictability, real estate investment is a relatively stable market for investors.
- Tangible Property: As previously mentioned, a safety net within real estate is the tangible property aspect. Unlike other forms of investing that rely on liquid assets, the hard collateral of real estate prevents the total loss of investment. Through a trust deed, investors hold the title of the property, which is beneficial should a borrower default. Along with this, the deed outlines the steps of borrower default – avoiding long governmental processes.
- Invest in Real Estate without being a Landlord: We get it, real estate investment is tempting. What’s not appealing? Dealing with tenants, housing maintenance, and a slew of other responsibilities that come with being a landlord. Having investment properties are great, but funding the process is an even more hands-off approach with minimal work on the investors’ end. For those not yet willing to get up close and personal in the real estate business, but still want to get involved, trust deed funding may be the right fit.
If you are an investor looking to get started, JMJ Funding has over 28 years of private lending practice. We keep private lending simplified, and will match you with a potential borrower. We will match you with the right investment, and start the cash flow channel today.
