Investors & Investing in Real Estate
There are many ways to invest in real estate, but the two we concentrate on is property investing and trust deed investing.
With property investing, there are two basic strategies – buy and hold or buy and sell. The buy and hold investor is typically looking for long term appreciation as well as monthly income. This goal can be accomplished through many types of real estate, from commercial to multi-family to single family properties and more.
The buy and sell investor is a short-term investor primarily interested in income. The goal is to purchase a property under market value, increase the value through rehab, upgrades, leasing it up or other means, then sell it for a higher dollar amount. We have hard money loans available for both of these types of investors. If you are a real estate investor looking for funding sources, please give us a call at 877 462 3422.
Trust Deed Investing
Trust deed investing is another way to invest in real estate. Instead of owning the property, however, a trust deed investor is lending money secured by real estate. If the borrower defaults on the loan, a trust deed investor would have the ability to foreclose and sell the property to cover their loan and fees. Hard money investors these days are typically getting anywhere between 8% and 12% return on their money, and the underlying real estate that backs their investment typically has 35% or more equity.
For many this is a way to earn a good return while being secured by an asset that has a real value that can be liquidated to make them whole if need be. It can provide monthly income and can even be an option for some retirement accounts (such as self directed IRA’s). In addition, by investing in individual trust deeds instead of investing in a larger fund, investors are able to look at each deal they fund. Many investors drive by the property prior to lending on it, or even do a site visit with an interior walk through.
Individual trust deed investors fund many of our loans. It is one of the primary sources of funding for our clients. Trust deed investing is not for everyone – it is important for trust deed investors to understand the risks associated with their investment. No investment is 100% guaranteed!
For more information, visit our Trust Deed Investing page.