Investors Overview

A Real Estate Trust Deed Investor is someone who invests in real estate through a trust deed investment. In this type of investment, the investor loans money to a borrower who uses the funds to purchase a property. The investor then holds a lien on the property and earns interest on the loan.

A trust deed, also known as a deed of trust, is a legal document that transfers the title of a property to a trustee as security for a loan. The trustee holds the title until the borrower repays the loan, at which point the title is transferred back to the borrower.

In a Real Estate Trust Deed Investment, the investor loans money to a borrower who uses the funds to purchase a property. The investor then holds a lien on the property, which means that if the borrower defaults on the loan, the investor has the right to foreclose on the property and sell it to recoup their investment.

Real Estate Trust Deed Investments can provide a steady stream of passive income in the form of monthly interest payments. They also offer a relatively low-risk investment opportunity, as the investment is secured by the property. Additionally, investors can often earn a higher rate of return on their investment compared to other fixed-income investments.

While Real Estate Trust Deeds are generally considered to be low-risk investments, there is still a risk that the borrower will default on the loan. In this case, the investor may have to foreclose on the property, which can be a time-consuming and expensive process. Additionally, there is a risk that the property may decrease in value, which could result in a loss for the investor.

To get started investing in Real Estate Trust Deeds, you can work with a licensed broker or real estate professional who specializes in these types of investments. They can help you find suitable investment opportunities and guide you through the process.

Real Estate Trust Deeds are regulated by state and federal laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. In addition, many states have their own regulations governing these types of investments.

While Real Estate Trust Deeds and mortgages are both used to secure loans for the purchase of real estate, there are some key differences. With a mortgage, the borrower retains legal ownership of the property, while the lender holds a lien. With a Real Estate Trust Deed, the title of the property is transferred to a trustee who holds it as security for the loan. Additionally, mortgages are typically sold to investors in the form of mortgage-backed securities, while Real Estate Trust Deeds are typically held by individual investors.