How can we start?
As an investor you have many options when it comes to where you put your money. Day after day when you are watching TV, you’ll see advertisements telling you to invest in gold, stocks and mutual funds. And because of those ads, people have become familiar with those investments.
But fewer people are familiar with trust deed investing, although it’s a form of investing that is probably as old as money itself. Simply put, trust deed investing is investing in loans that are secured by real property.
Loans through a deed of trust are very similar to a mortgage. There are three parties in a trust deed: the borrower, the lender and the trustee. The trustee possesses the deed while the loan is active. Also, there is a signed promissory “note” that defines all the terms of the loan. If the borrower defaults on the loan, the trustee starts the foreclosure process. In a mortgage, the lender has to go to court to foreclose.
Trust deed investing is very popular because it pays a comparatively high rate of return and the investments are secured by real property. Furthermore, once the loan has been made, the rate of return associated with the Deed of Trust doesn’t change. For example, you might invest in a Trust Deed that has a term of 36 months.
Investing in Trust Deeds essentially means you are loaning your money against collateral. The collateral – real estate/land, in this case, – serves to protect the lender’s investment. This leads us to one of the most important considerations in trust deed investing: the true value of the collateral.
It’s very important that trust deed investors consider the size of the loan they are making in relationship to the value of the real property collateralizing the loan. Salas Financial uses a detailed underwriting process to help justify the value of the property, and evaluates each appraisal.
Before choosing a company to invest with, you should always do research on the company. Please take a look on our funded & available investment pages to see a plethora of loan scenarios that Salas Financial has brokered. Our corporation’s license number under the California department of real estate is #01903009, please feel free to verify our credentials on DRE.CA.GOV.
If you have any questions, please do not hesitate to call us at 858-537-9819 or
info@salasfinancial.com and we will be more than happy to have a conversation.