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    Real estate investors are always on the hunt for the next big investment. The best way to invest is to build passive income. Passive Income requires little maintenance or oversight and continues to add to revenue streams. That is why more investors are looking to trust deed investing.

    Trust deed investing has been around for a long time, and is a great opportunity for any investor to build passive income. This passive income stream makes it easy to invest in real estate, and earn, all while building a passive income.

    Our practical trust deed investing guide makes it easy to learn more, and start investing in trust deeds. That is why we made this guide to help investors find, and invest in mortgage notes.

    As investors, and mortgage brokers we know what first-time investors need to know to start trust deed investing. So follow this guide To  Easier Trust Deed Investing!


    Trust deed investing is when an investor purchases a deed of trust from a lender to profit from interest accrued on the loan.

    Note buyers profit from purchasing the deeds of trust or mortgage notes as they will receive the interest from these loans, and can purchase them at a discount from the lenders. Note buyers can work with lenders who service their loans for them and receive monthly checks without having to check with the borrower. There are many benefits to investing in deeds of trusts, and why some investors prefer them.

    • High Yield Returns – Rates of return that are higher than the bank’s traditional low yield bonds; and higher than most stock dividends.
    • Monthly Income – If you are looking for additional monthly income for retirement, for living expenses, or to build your savings account, we can help.
    • IRA Friendly – This investment provides investors with a way to put to use their self-directed traditional IRA or Roth IRA.  We can recommend several custodian companies that handle the paperwork and hold your IRA while the funds are invested with us.
    • Rollover Option – Option to automatically roll over your investment so you don’t miss out on earning interest or future investment opportunities.

    Trust Deed Investing is a hands-off approach to investing in real estate that can offer high yield returns and passive income. If you decide to invest in deeds of trust, you need to make sure to choose the right type of note to invest in.


    What's a mortgage APR?

    Your annual percentage rate, or APR, is one of the many costs that comes with a mortgage. While your mortgage’s interest rate is the annual cost to borrow money (expressed as a percentage), your APR takes other fees and charges into account.

    Your APR includes the loan’s interest rate, any mortgage points you purchase, and lender and broker fees. Looking at your APR can give you a picture of the true cost of your mortgage.

    A mortgage’s APR is usually more than its interest rate.

    What are mortgage fees?

    Charging fees is one way that lenders make money off mortgage loans. Mortgage fees should be listed on your closing documents and may include the following:

    Origination fee
    Application/processing/administrative fee
    Underwriting fee
    Points fee
    Appraisal fee
    Inspection fee
    Attorney review fee
    Private mortgage insurance
    Homeowners insurance
    Title search or insurance fees
    Survey fee
    Prepayment penalty

    What are different types of mortgage loans?

    The most common type of mortgage loan is a conventional loan. Other types are backed by the Federal Housing Administration or are from a special program such as the Veterans Administration or the USDA.

    Most mortgages are conventional, meaning they’re not part of any specific government program — though they’re still subject to federal mortgage laws. Conventional loans typically cost less than FHA loans, but it may be harder to qualify for a conventional loan.

    The FHA regulates and insures FHA loans, and private lenders make the loans. FHA loans allow you to borrow with a lower down payment and generally with lower credit scores. But you may be limited on how much you can borrow through an FHA mortgage.

    Special home loan programs are tailored for certain groups. For example, VA loans are for veterans, military service members or surviving spouses, while USDA loans are for lower- or middle-income borrowers in rural areas.

    What documents do I need for a mortgage?

    Each lender will have its own requirements for what documents to submit when applying for a mortgage. But here’s the info you’ll generally need to provide.

    A month’s worth of paystubs
    W-2s for the past two years
    Your federal income tax return for the past two tax years
    Proof of income
    Recent bank statements
    Proof of your down payment amount, such as a savings account statement
    Documentation of a name change (if you’ve recently changed your name)
    Identification, such as a driver’s license
    Your Social Security number
    A certificate of housing counseling or home-buyer education (if you have one)

    Will mortgage rates go down?

    It depends — mortgage rates are generally influenced by the prime rate. Many banks base their prime rates on the federal funds rate, which is the rate banks charge each other for short-term loans. When the Federal Reserve changes the federal funds rate, mortgage interest rates can react and go up or down.

    But a lower (or higher) prime rate doesn’t necessarily determine the mortgage rate you’ll qualify for. Your credit scores, the type of loan you’re seeking, the price of your home and how much down payment you can afford can also affect your mortgage rate.


    As real estate investments vary, so can opportunities for trust deed investing. All notes are not made equal and have varying levels of risks. From land, mobile, rentals, and flips, properties can vary greatly, depending on your investing goals you may find different types of notes work best for you!

    You can invest in deeds of trust for many different types of loan types and positions, as well as property types.

    Types of Trusts Deeds Investments Are A Combination of the Following:

    • Secured Loans
    • Unsecured Loans
    • Private Loans
    • Institutional Loans
    • First Position Loans
    • Second Position Loans

    These terms are used to identify the type of mortgages tied to properties. Secured mortgages have tangible assets tied to the loan, such as the real estate property itself. Unsecured loans are not tied to a particular asset. Additionally, Depending on who you purchase the loan from may qualify it as a private loan (from a hard money lender, or private money lender) or a credit union or bank.

    The most common trust deed investment type is often secured residential properties as they offer the least amount of risks. Before you start investing in notes, make sure you know how to identify a good trust deed investment before you apply. If you work with a reputable mortgage broker you can easily find a trust deed that works for your goals.


    Once you have identified the trust deed investments that work best for you, you can begin your search for deeds of trusts to invest in. Mortgage note brokers will be able to easily match an Arizona deed of trust to your investment goals. You can easily find a mortgage note broker in a variety of ways.

    3 Places To Find Mortgage Note Brokers:

    • Local Bank: You can easily find a mortgage note broker at any local bank. They will share their portfolio of deeds to invest in but local banks may be harder to approve your note buyer application and a slower process.
    • Find A Mortgage Note Broker Online: If you have certain locations, or deed requirements, working with online mortgage note brokers is a great way to have more options for your investing. You can easily apply, find, and invest in Arizona deeds of trust online. Many large platforms offer online trust deed investments.
    • Note Funds: You can also start trust deed investing through note funds. Commonly these are offered by private equity funds or hedge funds. Through a note fund, you can invest in multiple notes with a group of investors.

    Mortgage note brokers will work with you to find the notes that offer the best return on investment and match your investment goals. Choosing the right method is key to aligning with your goals.


    Now that we have covered the basics of trust deed investing, follow these steps to start your first investment.

    Step 1 – Find A Mortgage Note Broker

    As we covered above, finding the right note is key to trust deed investing. When you invest in a deed of trust, finding the right notes is key.

    To find the right deed of trust, you need to find a mortgage note broker that aligns with your ideal property price, and type of real estate. Different lenders will offer a variety of property types and prices. Once you find a broker that aligns with your investment strategy you can apply.

    Step 2 – Applying and Underwriting

    After finding the right mortgage note broker, you will apply to note investing. This will require some of your information, such as the ideal price range, investment history, and type of property. Some may require proof of funds or collateral.

    After the broker approves your application you can review and select a note to purchase.

    Step 3 – Purchasing and Earning From The Note

    Once You are approved for your note, a broker will send you a selection of active notes to choose from. These loan overviews will be short fact sheets with the following information about the property and loan:

    • Property description
    • Loan amount
    • Loan-to-value ratio
    • Annual interest rate
    • Duration of loan
    • Exit strategy

    This valuable information is crucial for selecting a trust deed to invest in. After a deed of trust is selected, the borrower purchases the note and starts earning on the interest right away. It’s that easy!

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    Address :- 1307 W 6th St #219, Corona, CA 92882
    Phone : (951) 963-9399
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