Smart About Stocks-Trust Deed Investing Part 2

<< Previous 1 [2] Next >>

With a Trust Deed Investment

James places $500.00 in a 1 year trust deed investment that pays 10% compounded annually. After 20 years, the $500.00 would become $3363.75 paying approximately a $150.00 annual retirement income to James at 10%. (Note: this is calculated by using the same method as the previous example, except that the 10% is calculated as 1.1 [1.1: 1 = the single deposit of $500.00 and .1 = the 10% annual yield.]

By comparing the above two examples, James’s trust deed investment provided him with approximately 15 times more retirement income! Now that’s a difference worthy of your attention.

In addition, there are a number of other bonuses related to trust deed investing that you may want to keep in mind before choosing just any type of investment. Here are a few of the basic advantages that investing in trust deeds offers you as an investor:

1. The interest rate paid by the borrower is typically higher than rates paid by banks.

2. Investing in a deed of trust generates a monthly income that is established through interest payments.

3. Trust deeds can be traded

4. Trust deeds sell fairly easy because they are liquid

5. When you invest in a trust deed, every month that goes by increases your protection because the loan amount continues to be lowered by amortization.

The more you learn about trust deeds, the more you will discover that this investment offers you a high rate of return at a risk you can afford.

The purpose of this site is to provide you with the fundamentals of trust deed investments. Within its pages you will discover all of the essential aspects that are required in order to make investing in a deed of trust a secure and safe risk taking experience. Some of the topics you will find include the different methods for investing, loan underwriting, title insurance, lien priority, escrow and much more.

This site has been designed to give you a good idea of the many golden opportunities that await you should you choose to invest in deeds of trust. With all of the knowledge you will obtain from Trust Deed Investing, you will gain the confidence you need to know how to protect your investment, choose the right broker and provide an excellent product with the least amount of risk.