Frequently Asked Questions from Investors (FAQ)
Commonly asked questions about investing with us.
Are trust deeds a secure investment?
Trust deeds are generally considered to be lower risk than unsecured loans. This is because the investment is secured by a physical asset, the borrower’s property, which means that if the borrower doesn’t repay the loan, the investor has assets to claim. Trust Deed Investment is not without risk though, much like any form of investment.
Are there predictable returns?
Trust deeds come with a fixed interest rate for a specific amount of time which provides for a more predictable cash flow.
Does investing in trust deeds help diversification?
Yes, by adding Trust Deeds to your portfolio, you are incorporating a different asset class that might perform differently than stocks or bonds.
Do trust deeds offer better returns?
Because Trust Deeds are secured by real estate and involve a relatively short-term investment, they can offer higher returns compared to savings accounts or CDs.
Are trust deeds a short-term investment?
Most trust deeds are short-term loans, which can allow investors to realize returns relatively quickly compared to long-term investments like owning real estate or long term held stocks. Average Trust Deed investment lengths are between 1 to 3 years.
What is the market volitivity of trust deeds?
Unlike equities, the performance of trust deeds is less influenced by stock market volatility, providing some insulation against market fluctuations.
Is this a good way to invest in real estate?
For those interested in real estate but not looking to directly buy or manage properties, investing in trust deeds offers passive income, through indirect exposure to the real estate market.
Is there potential for higher loan-to-value ratios with trust deeds?
Our trust deeds come with 75% loan-to-value ratio or lower!
Is utilizing a professional mortgage Broker important?
Yes. There are a number of regulations that must be complied with when lending in Trust Deeds. If you do not use a Mortgage Broker like Pacific Direct Mortgage you risk violating Usuary Regulations that could land you in hot water. A Mortgage Broker will also provide the Borrower and yourself with required disclosures, as well as help navigate the complexity of existing and new regulations.
Start Your Financing Conversation Today
Contact us now to discuss flexible private money lending solutions and real estate financing opportunities!