Trust Deed Investments In San Antonio – What To Look For And What To Avoid

Trust deed investments in San Antonio Texas can be a great way to diversify earn solid returns.

Trust deed investments are among the techniques that the rich use to make much bigger returns on their investments than anything else you can get on the open market.

In a nutshell, a trust deed investment is a personal loan that’s secured by real estate.

Many are short-term, typically under two years, and normally at a high rate of interest– 7-15% is common, even when banks are lending at 3-7%.

Surprisingly, there is a great deal of competition from borrowers who are willing to pay these kinds of rates to lenders– and an increasing number of investors who have an interest in funding them.

Why would investors take deals that banks would pass on?

There are a lot of reasons, so let’s begin with the basics.

Banks and lenders fall under a lot of guidelines that private money providers don’t always have to follow, especially considering that they’re not federally insured.

Local trust deed investments are really more like old-school investing. Trust deeds are built on trust– much like in the past, when it was common for deals to be sealed with handshakes and there weren’t as many lawsuits.

Trust deeds aren’t just based on ratios and credit scores.

For these deals, relationships, insider knowledge, and potential value matter a lot more than the score assigned by a computer.

However, like other high-return investments, there’s a great deal of risk involved if you do not know what you’re doing.

The investors who make a lot of money on trust deeds work with extremely reputable brokers, lawyers, and experts who help them assess the full potential of the loan– and evaluate the risks involved.

If you have an interest in capturing solid returns from the local San Antonio trust deed marketplace,  we may be able to help you.

We get requests from people who are wanting to borrow money secured by real estate (with equity!) who do not qualify for conventional financing.

As a general rule, the majority of investors desire a high degree of security that the borrower stands to make 20-50% ROI with the funds he or she borrows. It’s wise to pass on the investment, though, if the borrower’s strategy is too risky or reveals signs of possible failure.

We’re not brokers—in some cases, we might partner with qualified investors to secure deals, and a trust deed is one tool at our disposal.

If you’re wanting to invest in San Antonio Texas real estate – not just in trust deeds – feel free to give us a call anytime at (210) 807-6567.

We’re more than happy to talk with you about our services and discuss how we can help you earn money in real estate.

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