Every investor with any knowledge is aware of the real estate crisis currently affecting the United States. Many, however, may not but should realize that one person’s crisis is another person’s opportunity. To paraphrase the legendary investor, Warren Buffet, “…be greedy when others are fearful.” There has never been a better time for real estate investing in California, whether directly through the purchase of properties, or indirectly by providing financing with first trust deed notes.

Direct Investing

The current economic conditions make finding hard money loans difficult for even the most experienced real estate investors with proven track records. Real estate investing has simply gone out of vogue for large financial institutions. First Trust Deed Notes offer an affordable way to leverage existing properties or potential purchases.

Some Real Estate investors can be somewhat aggressive in their business approach and are willing to take some risks. Nevertheless, a smart, savvy approach to finding the right properties combined with superior rehabilitation and property management skills can result in significantly higher than average returns.

First trust deeds offers these types of real estate investors a ready source of cash at rates far below those of traditional financial institutions. In many cases, loans can be arranged in the sub 12% range instead of the more typical 18-21% range.

Indirect Investing

For the accredited investor with a net worth in excess of $1,000,000, first trust deed notes offer an exemplary method of safely investing in the California real estate market. Many retirees, even some from the real estate industry itself, are no longer interested in actively managing properties.

Instead, they have chosen to let their money work for them. Unfortunately, that money doesn’t work very hard when invested in CDs, savings accounts, or even the highly volatile stock market.

Indirect real estate investing, through first trust deed notes, offers an excellent alternative to these first two options. These financial instruments offer higher returns that are backed by a real asset. In addition, the loans against the asset are highly discounted so that, in the event of default, the investor can quickly and easily dispose of the property.

There are many options in real estate investing. First trust deed notes are superior because of their higher rates of return, their asset backed security, and their ease of attainability by developers and investors alike.