Www.RealEstateTrustDeed.com – Real Estate Trust Deed Investments
At the Real Estate Trust Deed Investments website at www.realestatetrustdeed.com, you will be able to find out about this company that specializes in foreclosures and short sales. The company has a lot of foreclosure properties in the United States. In fact, they have about 4 million such properties. So you can invest in these foreclosure inventory and properties. These include both residential and also commercial properties. The company will help you buy these foreclosures properties and then sell them. These properties will be sold a little bit below the current market value. This will ensure a profit for the investor.
You may be wondering who are the people behind the Real Estate Trust Deed Investment company at the www.realestatetrustdeed.com site. Well, you will be surprised to learn that they are actually real estate brokers and investors. These are people with experience in the real estate market and especially in buying and selling distressed property. They buy groups of properties – both residential and commercial. They are able to buy them at really low prices. They then sell these properties to you at the bottom of the market. So they are able to turn over the properties very quickly. You will be able to get detailed information on the owners of this company. The owners are Earl Dearing, Emil Golub. There is also information on Mahender Makhijani. So you can find out about them and what they have done. They can give some people confidence in the company.
If you do not know what the basics of deed trust investing is, you will be able to get this information under the Resources & Information tab on the site. What this means is that you will be investing in loans that are secured by real estate. These are short term loans. They usually mature before 5 years. A lot of these loans mature 2 years or less. What is happening is that many investors are buying property in foreclosures and fixing them up and reselling them in order to get a profit. Banks really do not want to lend because they already have a lot of bad real estate loans. This was due to the lending practices that led to many people buying property that they could not afford. So the criteria to get bank loans for real estate is very tight and strict. Bank usually are not too keen on lending money to investors. So there is not much financing out there if you want to invest in real estate properties.
So many investors are now turning to trust deed investing. There is very low risk and great yield. You will get high annual returns which will be paid monthly. Sometimes you can get a return of more than 10%. There is also a margin of safety so the risk of you losing money is very small. So what is the margin of safety? This is basically the difference between the value of the property and the amount of the loan. So what this means is that the lender can foreclose and get the sell the property to get the money back. So if the loan is conservative, this means that the value of the property is high and the chances of losing money on this is pretty low.
So what are the risks of this type of investing? Basically the biggest disadvantage is that these investments are not liquid. This means that you cannot get your money back quickly and you cannot change your investment into csh quickly. You will have to be willing to wait either until the borrower has paid the loan off or until you have sold the foreclosed property. Another major disadvantage is that there is no capital appreciation. This means that the returns that you get as an investor is from the interest income from the loan.
Another set back is that you have to find the borrowers and look at their merit. You have to check them out and you also have to check the property to make sure that you will not lose money on the deal. So there is risk. Some of the risks could involve litigation or title problems. So this is not for everyone. Make sure that you are capable of taking on the risks if it comes to that.
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