December 29th, 2017 5:17 PM by Andrew Liu, President NMLS#249736
Most economists have predicted that economy will continue to do well next year, real estate value would mostly like to continue to rise as the inventory is still very low specially in the San Francisco bay (According to Santa Clara Association of Realtors, areas that the association covers including San Jose, Sunnyvale, Mountain view, Palo Alto, San Mateo etc that is almost half of the San Francisco bay area, there are only 8 houses for sale that are listed price below $500,000)
Many investors have tried to invest in real estate. However, because of the low inventory, they have often lost out to higher bids. It also become questionable whether it would be wise of over bidding on properties.
However, money in the bank provides literate no returns. A great alternative is to invest in trust deeds.
These notes would provide you with yield rate of 5% to 10% depending upon the risk level you are willing to undertaken. A typically borrower, that you would lend money to, would put down minimum 30% or more. Therefore, the investors risk has been minimized to only 70% or lower of the purchase price. What if the borrower does not pay the monthly mortgage? Since the trust deed is tired up with the property, the property can be foreclosed to get investor’s money back.