Trust Deed Investing
What Is It And How Does It Work?
As real estate markets across the nation hit bottom and the sales prices of investment properties reach historic lows compared to rents, cash flow is once again king and trust deed investing has begun to surge in popularity. In a typical trust deed investment, the investor places their funds with a trust deed broker and that broker lends those funds to borrowers who have been (presumeably) adequately screened by the broker. In many ways, the trust deed functions identically to a normal residential mortgage...the investor lends money to the borrower, the borrower makes monthly payments to the investor, there is a given term to the loan and a prescribed interest rate. However, in the case of trust deeds, the majority of borrowers are real estate professionals and most of the properties are non-owner occupied. The interest rates are higher with trust deed investments than with conventional mortgages, resulting in a higher rate of return for the "bank" or investor.
Trust deeds are generally viewed as a very secure form of investment for several resons. First, most trust deed brokers limit the loan amount to between 65% - 80% of the after repair value (ARV) of the property in question. This ensures that, in the case of default by the borrower, the property could be sold for more than the amount of the loan and the funds repaid to the investor. Second, the investor becomes the first position lien holder on the property and, as such, his investment is secured by the property itself. However, there is a substantial risk inherent in traditional trust deed investments that we eliminate here at Team Plantone. That risk is simply a lack of control and information for the investor. When an investor places their money with a trust deed broker, they have no idea who will ultimately be borrowing their money. They are not allowed to speak to or interview this person. They have no idea of his or her qualifications, track record, history in the business, rate of success, etc. When you invest in a trust deed with Team Plantone, you eliminate that uncertainty. This is because we only broker trust deeds for our own properties. You know that your funds will be going to purchase Team Plantone properties and we are happy to provide you with a long and detailed record of our years of success in the residential rehab industry here in Las Vegas. This is important because it gives you an added layer of security for your investment. Not only do you know that the loan to value (LTV) ratio on the loan you provide will be strong enough to insure the security of your funds, you have the added peace of mind of knowing that Team Plantone has completed almost 200 rehab-to-rent projects in the last three years and has never defaulted on a single payment. You can visit our Testimonials page on this website for more details from our customers or ask for a personal referral to speak with one of our funders. Another benefit of investing in trust deeds through Team Plantone is that we never charge a Brokers Premium for our trust deed investments. Since we are only brokering for our own projects, we are able to provide the highest returns possible to our investors without those returns being cut by Brokers Premiums or other fees.
High Yield trust deed investments are available to private individuals, corporations, non-profits, pension plans, 401Ks, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs and SEP accounts. If you are interested in learning more about trust deed investments, the yield and secuity they provide, investment minimums and more please contact Glenn directly at (702) 656-3264 xt: 203