About Trust Deed Investments - The Alliance Portfolio

Trust Deed investing is the loaning of money with real estate as collateral. In California, most loans against Real Estate are called “Trust Deeds,” after the name of the legal instrument used to pledge their security. With expert guidance from The Alliance Portfolio, anyone can successfully invest in trust deeds. This contrasts with most other investments where extensive study and years of experience may be necessary before you can invest with confidence. Trust Deeds are safer than most other investments of comparable yield because the risks are identifiable, as well as the procedures necessary to counter them. Many investors, especially retired people, also enjoy the relatively minor effort needed to manage the investment once their money is in place.

The typical trust deed investor is a person looking for a competitive return on their investment. The interest rate the borrower pays is generally higher than the borrower would pay at a bank. The investor in turn, receives a higher return on his investment. Additionally, the money you loan is secured by the borrowers’ equity in their real estate. The security, the good return, plus the monthly cash flow, make trust deeds and excellent investment vehicle.

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Investing through a Loan Broker

Most private money trust deed investments are conducted through loan brokers, who either arrange new real estate loans, or who broker the sale of existing loans. If truly an expert in the business, the broker brings vast knowledge about the origination and administration of trust deed investing. One of the most important requirements in trust deed investing is the knowledge, experience and integrity of the loan broker through whom the transactions may be made or arranged. One possible indicator of a good broker is his membership in professional trade organizations such as CMA (California Mortgage Association) or CREFF (Commercial Real Estate Finance Forum). Membership in a professional association requires a vigorous educational program designed to keep the broker apprized of every nuance of the law. Additionally, a loan broker that has been successful enough to withstand the test of time is one of the best recommendations of all.

Before placing your trust and money with a Loan Broker, you would be wise to call: (1) The Department of Real Estate to determine if the broker and any representatives are properly licensed, how long each has been licensed, and whether any of the licenses have been disciplined: and (2) the local Better Business Bureau to ask if any complaints have been lodged.

Click here to see the Available Trust Deeds that we offer.