When you’re looking for ways to invest, one of the lesser known option is trust deed investing. Through this method, you are able to invest in real estate with a lower risk than through other methods and with a higher chance of a good return on your investment. The good news is you will be able to invest in real estate without taking a hands-on approach that requires a high level of expertise. The following facts can help you determine if trust deed investing is right for you.
Investing in the stock market can be extremely volatile and unpredictable. You may work hard to build a balanced portfolio, but there are never any guarantees it will perform well. When you invest in trust deeds, you will be guaranteed a specific return over a specified period of time. These returns are often much higher than you will see on other types of investments, unless you take a major risk that isn’t guaranteed to succeed. A trust deed investment can best be compared to a high-return bond with a fixed rate.
A Low Entry Point
When you consider trust deed investing, you won’t need a particularly large amount of money to begin. In most situations, you can get started for as little as $25,000. If you think about it, you would typically need to spend much more if you were to buy a home directly, which is why this type of investment can be quite lucrative. You won’t have to make as large of an investment and can still see the same high returns you would get if you purchased a residential property for your own investment purposes.
Trust deed investments carry a fixed rate of return so you don’t need to worry about how much money you will make on your venture. It won’t matter if the market goes up or down during the time in which your investment is in place; you will receive the same return you signed up for. You also won’t need to keep as close of an eye on the market in order to sell quickly if it appears the value is beginning to slide. You will know exactly what you are up against the entire time, making this a relatively low-risk investment to help you build a solid portfolio.
Choosing the right methods of investing can be a difficult task. It’s important to keep in mind a diverse portfolio is more likely to provide the greatest returns for your investment. However, adding trust deed investing as part of your portfolio provides you with a guarantee many of your other investment options simply can’t provide, making it a great choice for all levels of investors.