Finding dependable funding sources for real estate investment deals has become significantly more difficult over the past decade. Not only does the entire RE industry have somewhat of a “black eye” but traditional lending institutions are more constrained by government laws and regulations than ever before. Real estate developers in need of investment capital should look to non-traditional sources such as hard money lenders as there are significant advantages to these private, knowledgeable and experienced lenders.

In general, real estate investing offers two interesting alternatives, active and passive investing. The active investor purchases, rehabilitates and then rents or resells a property. This process can be extremely rewarding financially but carries a significant amount of risk as the buyer can lose his entire investment if the property does not perform up to expectations.

Whether you are a seasoned trust deed investor or you are considering your first trust deed investment, there are critical considerations to make in ascertaining that the investment is right for you. Its very important to familiarize yourself with trust deed investing before you make the final decision. Make sure to review available notes, and select properties and locations you are comfortable with. 

Buying a piece of investment property is a major decision. When you buy the right property the right way, it can generate very healthy returns. On the other hand, recent history gives us ample examples of what happens when you buy the wrong property the wrong way. Here are five considerations to keep in mind that should help make your investment both profitable and successful:

So often I meet investors who are looking to break into the real estate business and take advantage of the affordability of today’s housing market. There is no denying that these individuals possess the skill set and work ethic that is required to be successful in the fix and flip business. These individuals may not recognize the amount of time and money it takes driving each and every one of the homes on their “prospect” list before they find the “cherry” they have been looking for. Some may have even experienced the heartbreak of losing that “Dream” deal to another one of those Multi-Million dollar hedge funds that most likely never even drove an hour and half in traffic to see the place.

My advice to those who want to make money in today’s real estate market and don’t have the time or energy it takes to find the deals: BE THE BANK. When you invest in Trust Deed Capital’s 1st Trust Deed Notes, you become a private money source for California real estate investors who purchase, refurbish, and resell California real estate. Trust Deed Capital has built positive working relationships with rehabbers who have a proven formula for success in the fix and flip business. Invest, enjoy a 9-10% annual return on that investment, and become more aware of what it takes to become a pro in the fix and flip arena. Who knows, you might find the note buying business to be more lucrative, less headaches, and just as rewarding.  Here are the top 10 reasons Investors choose to invest in Trust Deeds: 

1. Trust deed investing offers an unusual combination of high returns and consistent cash flow with a secured investment.  Investors receive monthly interest payments on their invested capital as they would with a fixed income investment or money market fund, but the yields are typically higher.
2. Trust Deeds are secured by property, so the risk is low.
3. Yields are higher compared to other fixed income securities. Real estate collateral is often viewed as more tangible than stocks and equity investments.
4. Trust Deeds also offer a vehicle for investing in real estate without the need to manage property. They’re an excellent way to diversify a portfolio.
5. Relatively secure and predictable, and returns beat inflation significantly.
6. Monthly growth rebuilds wealth.
7. Simple and transparent. Unlike publicly traded real estate related securities – e.g., CMO’s, MBS’s, REIT’s – Trust Deed Investments are straightforward and easy to understand.
8. Trust Deed Investing is like Real Estate investing without the hassles of ownership - and with the benefits of relative liquidity.
9. Trust Deed Investors can diversify into real estate without acquiring that expertise – or learning the hard way.
10. Trust Deed Investors can diversify across multiple RE projects with relatively small investments. 

Most real estate investors start the process by deciding what kind of investors they want to be. One traditional path to investing in real estate is to buy properties, fix them up and resell them. While this can be lucrative, it is also very time-intensive and can be risky. There is another path, though. Instead of being the owner, why not invest in first trust deeds? You can invest in real estate by providing money at generous rates of return to the people that get their hands dirty.