INVESTING IN TRUST DEEDS CAN SAFELY EARN 10% ANNUALLY-WITH LIMITED RISK.

Many people have heard of hard or private money trust deeds, but, they do not know how to participate in these lucrative investments. Let me explain how simple is is for almost any investor to invest in high-yielding trust deeds.

PROTECTIVE EQUITY IS THE KEY TO SAFETY

An investor needs to realize that a private or hard money loan is made only to property owners with sufficient equity, or protective equity. This is what makes the investment low-risk for the investor. Normally, a private money loan is made only when the property has in excess of 35% or more. Example: a property owner owns a 5 unit multi-family complex, the value is $1,000,000, and he currently owes $300,000. He has 70% protective equity. In this case, we would lend a maximum of $300,000, or a new loan to value of 60%. We would make sure the property cash flows, thus easily paying all debt and expenses before we would make this loan.

In this scenario, we would offer the borrower a new 1st trust deed of $600,000, for a term of 3 years, with an interest rate of approximately 12%. We would also offer another option on a 2nd trust deed, as the borrower may have a low interest rate in the first, and he may want to keep that loan. We would offer a $300,000 2nd trust deed, with an interest rate of 14%, interest only, with a term of 3 years.

Now, who services the loan, or, who collects the monthly mortgage the payments? This is where investors in trust deeds need to be careful. Why? well, if a new 2nd trust deed were offered, the investor needs to make sure the 1st trust deed is paid every month, otherwise,it could go into foreclosure. A good private equity company would offer this service, wherein they service the loan, and monitors the 1st trust deed, to make sure the payments are being made.

A good private money company sees hundreds of deals each month, and they turn away most deals. In today's market, there are more deals that there is money to fund the deals. In my case, I personally see over 50 deals each week, and only accept 2-4 of these deals. My main goal is the safety of my investors. My investors have never lost one dollar of investment capital.

The bottom line, is that investing in private or hard money trust deeds is a great investment because:

* Your investment is secured against real estate, perhaps the most stable investment in the world.

* It is an investment that is easy to understand. No need to study financials, stock charts, or listen to some analyst on a news channel.

* You know your return on investment upfront, when the deal is structured. You know the amount of the check each month that you will receive in your mailbox.

* Your investment can be completely passive. A good private equity firm does all the work for you.

* This method of investing is proven. Some of the wealthiest people in America only invest in high-yielding trust deeds.

The real beauty of investing in trust deeds, is that this investment can be used through a retirement account. So, even small investors can benefit from investing in high-yielding and safe trust deeds.