--- title: 6 Tips To Successfully Invest In High Yield Trust Deeds description: Here are six tips to help you get started in the world of high yield trust deed investing. image: https://www.trustdeedcapital.com/hs-fs/file-27372403-png/images/trust-deed-investing-tips.png --- [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16494019-png/images/trust-deed-capital-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/) CALL 1 (888) 563-5588 Search ![Hard Money Lender Investors](https://www.trustdeedcapital.com/hs-fs/images/blog.png) ## [6 Tips To Successfully Invest In High Yield Trust Deeds](https://www.trustdeedcapital.com/blog/bid/145981/6-Tips-To-Successfully-Invest-In-High-Yield-Trust-Deeds) Posted by [Ken Meyer](https://www.trustdeedcapital.com/blog/author/ken-meyer) on Thu, Apr 04, 2013 - [Tweet](https://twitter.com/share) ![trust deed investing tips](https://www.trustdeedcapital.com/hs-fs/file-27372403-png/images/trust-deed-investing-tips.png?width=330&height=183&name=trust-deed-investing-tips.png)If you'd like to participate in the growth of the real estate market, but don't want to own, rehabilitate or manage properties, trust deed investing could be an excellent option for you. Instead of buying the properties, you provide money to the investors that are looking to buy property which they repay to you at a healthy rate of interest, giving you a high yield. You get a simple, relatively secure, investment, that pays you attractive returns that are frequently above 10 percent. Here are six tips to help you get started in the world of high yield trust deed investing:  ## 1. Don't Go It Alone You can find an investor and lend him money, but it's usually not a good idea. Working with a company that pairs up investors and lenders lets you take advantage of their marketing and their application processes to find and vet borrowers. They can also help by servicing the loan for you so that all you have to do is deposit the monthly check. ## 2. Watch Your LTV Many investors want to borrow money with nothing down since it's essentially risk-free. If the investment doesn't work, they can walk away and lose nothing. This makes them a bad credit risk. Focus, instead, on investors that are willing to put their own money into a deal. If they put a a 30 to 40 percent payment down on the property, they'll want to protect their investment by not being foreclosed on. ## 3. Focus on Upside Properties. If you can lend on property with upside, your trust deed is that much more likely to get paid off. The more benefit the buyer gets from the property, the more willing they will be to pay your loan so that they can hold onto the property. ## 4. Do Your Due Diligence. Complete a full due diligence package on both the investor and on the property. This will help you to be sure that you're making a good loan to a good borrower on a good property. ## 5. Cover Your Assets. Your trust deed should require the property to carry rental property insurance. The borrower should also provide you with a lender's title insurance policy. This way, your interests are protected. ## 6. Have a Servicer Loan servicing companies simplify trust deed investing by taking care of  the paperwork and the process of collecting the borrower's check. All that you do is cash the net proceeds check.   [![Click me](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/8c1ed7f8-91e0-4490-af38-0396a430c3d6.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/8c1ed7f8-91e0-4490-af38-0396a430c3d6) ### Have Questions? 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