Trust Deed Investments
Las Vegas Private Lenders LLC offers trust deed investments to private individuals, corporations, pension plans, family trusts, and self-directed IRAs When you invest in trust deeds, you become the lender, with the benefits associated with cash flows and the security of holding real property as collateral for your loan.
What is Trust Deed Investing?
Trust deed investing involves a private investor lending money to a borrower through a private loan. The borrower will use the investor’s capital to purchase or add value to a property. The investor’s name is shown on the deed of trust and recorded at the local county. The deed to the property stays “in trust” to a third party - often a corporate trustee, who reconveys the property to the borrower when the loan is repaid or conveys the property to the lender if the borrower can’t pay back the debt. The trust deed ensures the property is collateral for the loan if the borrower defaults.
Most trust deed investments are short-term loans made to professional developers and real estate investors. Real estate investors and developers often buy properties at foreclosure sales, make repairs, and resell them for a profit. Traditional banks and mortgage companies are reluctant to make these types of real estate loans. Since real estate investors and developers often have limited access to capital, lenders to this market can command high interest rates.
What Makes Trust Deed Investing Attractive?
Trust deeds serve the needs of both borrower and investor. Trust deeds help fill the gap left by traditional financial institutions and make loans available to real estate developers and investors.
Trust deed investments offer attractive yields for investors with low risk when appropriately structured. Most earn high single-digit to low double-digit annual returns, paid monthly. Many investors choose trust deed investments for high-yield returns secured by real estate.
Basic Benefits for Investors
Real estate is a tangible asset, and investors can expect high returns from trust deed investing. A real estate trust deed can be an excellent way to diversify your investment portfolio.
Investors also benefit from passive income in the form of monthly interest payments. The real estate market can change unexpectedly, and investors should consider their risk tolerance before investing in any product, including trust deeds.
Are Trust Deeds a Safe Investment?
Properly underwritten trust deed investments can provide investors with consistent passive income while securing their investment with real estate collateral. As with any investment vehicle, the Trust Deed Investor should consider real estate market trends, the general economy, diversification and their personal risk tolerance when investing in Trust Deeds.
Why Choose Las Vegas Private Lenders LLC?
With decades of experience in commercial real estate finance, the experts at Las Vegas Private Lenders LLC can help you navigate the world of trust deed investing. We apply our expertise to underwriting potential trust deed investments for our investor clients, manage the appraisal process, provide loan documents and monitor the loans until they are repaid in full. If you’re interested in learning about trust deed investing opportunities, contact Las Vegas Private Lenders LLC. We look forward to discussing your financial goals and finding the best investment opportunities for your portfolio.