February 15th, 2018 2:28 PM by Andrew Liu DRE: 01109246 NMLS#249736
Invest in Trust Deeds in 2018
Most economists have predicted that the economy will continue to do well this year, real estate value would most likely continue to rise. As the stock market starts to become volatile (Dow Jones swung 1000 points in one recent trading section). Many investors have tried to invest in real estate. However, because of the low inventory, they have often lost out to higher bidders. It also becomes questionable, whether it would be wise to over bid on properties. Money in the bank provides literally no returns.
A great alternative is to invest in Trust Deeds.
These notes would provide you with a yield rate of 5% to 10% depending upon the risk level you are willing to undertaken. A typical borrower, that you would lend money to, would put down a minimum of 30% or more. Therefore, the investors risk has been minimized to only 70% or lower of the market value. Interest will be paid to you monthly, and once the loan is paid off (typically between 6 months to a year), you will get your principal back.
We have been working with many borrowers, who are developers or contractors that flip properties, sometimes they need fast money to acquire or renovate properties.
For example, we just did a loan for a borrower who owns a triplex in San Francisco valued at $1.2 million, free and clear. The borrower needed about $200,000 (loan to value ratio at 16%) to complete a renovation project on the property, one of our investors funded the loan, closing it in just two weeks.
If you would like to receive more information about our Trust Deed Investment Program,
give us a call at: (925) 461-0500 or visit our website www.pacificwidelending.com