Safe Trust Deed Investments in this Market
Posted September 11th, 2008 in Trust Deed InvestorsThe market is sure changing. I still think trust deed investments are the safest vehicle to grow your nest egg. I practice what I preach. I look at my stock portfolio and find it takes a lot of effort to remain the optimist. My trust deed investments are a calm in this storm. However just as one picks good and bad stock, you may have some trust deed investments that are not trouble free. Although I personally never lost money on any.
We pride ourselves in choosing safe trust deed investments. As we have seen in the past the residential market is more volitle. You need to be conservative on Loan to Value ratios, and know that individual situations can change radically. Collateral, Collateral, Collateral. That is where the banks error. Good job, good credit today, can be gone tommorrow. (Or Falsified)
We have leaned toward income property, commercial trust deeds investments,these have far more stability and are a safe trust deed investment. Again, low Loan to Value is key.
They just don’t have the high default rate. Also, investing in trust deeds in areas familiar to you are safer. All our investors inspect the property first hand. We supply comparable sales from unbiased, reliable public records. We try and send those trust deed investments in the same area the investor lives. A self-directed IRA is a great way to invest in real estate and safe trust deed investments. That can be a great tax advantage, while your money grows. Discuss that with your accountant of course.
Colleen Bigler