Excite

Superb returns available with trust deed investments

With all of the current volatility in the financial markets spooking investors around the globe, there's no shortage of people looking for a safe investment opportunity. Although many people view safe havens as a bit of a myth, there are places where you can put your money and still expect double digit returns. Trust deed investments are one of the best ways of getting your money to work for you.

Trust deeds investments work similarly to mortgages. There are 2 ways of investing in trust deeds. Investors can either purchase a promissory note or make a loan directly.

The biggest difference between trust deed investments and mortgages is that there are 3 parties involved in the investment; a lenders, a borrower and a trustee.

The trustee is the middle man who holds the deeds of a property until the borrower has fully repaid the lender. If the borrower defaults on the loan, the deeds are passed to the lender.

As tempting as the returns on trust deed investments are, there are still a number of things you need to be very careful with; as with any sizable investment.

Obviously, it's vital that you spend time researching the property you're thinking of investing in. It's crucial that the deeds of the house are correctly attributed to the owner and that market value of the house is a fair reflection of its condition. And make sure there are no outstanding legal disputes regarding the property because they could severely debase your investment.

 

 

United Kingdom - Excite Network Copyright ©1995 - 2020