Trust deed investments in Fort Collins CO can be a fantastic way to earn solid returns and diversify. Deciding where to invest your money is never an easy task. The biggest question is: Where are you going to get the most return on your investment? With the stock market being so erratic and unpredictable, people are looking now more than ever for other ways to intelligently invest their money and diversify their investment portfolio. That’s where trust deeds come into play, connecting borrowers and investors in the real estate world.
Trust deed investments provide you the ability to easily become a real estate investor, substantiated with collateral, without all the hassle traditionally involved with real estate investing. Being an investor, your name is on the deed of trust in a first lien position on the property, and the invested money is lent to a developer seeking to acquire, develop or construct their project, immediately earning you interest on your money. It’s important that you know the great significance of your role as an investor and why these borrowers are seeking your help.
Why would investors take deals that banks would pass on?
There are lots of reasons, so let’s start with the basics.
Banks and lenders fall under a lot of regulations that private money lenders don’t necessarily have to follow, especially since they’re not federally insured.
Local trust deed investments are actually more like old-school investing. Trust deeds are built on trust – just like back in the day, when it was common for deals to be sealed with handshakes and there weren’t so many lawsuits.
Trust deeds aren’t just based on credit scores and ratios.
For these deals, insider knowledge, relationships and potential value matters a lot more than the score assigned by a computer.
But like other high-return investments, there’s a lot of risk involved if you don’t know what you’re doing.
The investors who make a lot of money on trust deeds work with highly reliable brokers, attorneys and experts who help them evaluate the full potential of the loan – and assess the risks involved.
If you’re interested in capturing solid returns from the local Fort Collins trust deed marketplace, we may be able to help you.
We get requests from people who are looking to borrow money secured by real property (with equity!) who don’t qualify for traditional financing.
As a general rule, most investors want a high degree of security that the borrower stands to make 20-50% ROI with the funds he or she borrows. If the borrower’s plan is too risky or shows signs of probable failure, it’s wise to pass on the investment.
We’re not brokers – sometimes, we may partner with qualified investors to secure deals, and a trust deed is one tool at our disposal.