Conclusion

By now you should have a good understanding of what is involved when it comes to trust deed investing, and should feel confident that with the knowledge you have in your possession, you can properly assess the risks involved.  In addition, you should also have a good idea of what to expect from your mortgage broker, and should be able to make educated decisions in regards to the loans you wish to invest in.

Don’t forget, the more you learn about trust deed investments, the safer the risk and the higher the potential for excellent return.  Thus, make the effort to keep these seven trust deed investing tips in mind when you are making an investment:

1. Know the market value and equity of the real property, as well as your loan security.

1. Know your borrower’s financial status and their credit worthiness.

1. Understand the escrow process.

1. Find out the experience, knowledge and integrity of the broker with whom the transaction will be arranged or made.

1. Keep all documents and important papers that describe, and provide evidence and security for the loan, in a safe and accessible place.

1. Know how to recover your investment when the borrower does not meet payment.

1. Understand loan servicing authority, provisions and compensation.

Always remember, although trust deed investments are one of the safer investment risks you can take, and have the potential to provide you with high return, ultimately the risk is yours.  That being the case, you may find it in your best interest to first speak with a qualified professional or a mortgage loan broker before you make any commitments with your money.