July 3rd, 2012
Yes, the real estate market IS changing. However, Trust Deed Investments are one, if not the safest and surest vehicle to grow your savings. I practice what I preach; my wife and I have grown quite a portfolio of Private Money Loans. I look at my stock portfolio and find it takes a lot of effort to remain optimistic about Wall Street. If you are like me, in the couple of years I’ve lost well over 30% of my stock portfolio’s value. Our Trust Deed Investments have weathered that storm. That said, not all Trust Deed Investments are trouble free. But I can tell you neither I, nor any of my investors have ever lost any money or interest on Trust Deeds arranged by me, ExpressLoan.
At ExpressLoan we pride ourselves in choosing Safe Trust Deed Investments. As in the past, the real estate market is and can be volatile. You need to be conservative on your Loan to Value (LTV) ratios, and know that individual situations can and do change radically.
Collateral = Security, Collateral = Safety, Collateral = Protection.
That is where the banks have gone wrong. A good job and great credit today can be gone by tomorrow or in many cases, falsified! With our valuation system, the collateral for our loans cannot be falsified.
We lean toward income property, both residential and commercial for our Trust Deed Investments; these have far more stability and are a far safer Trust Deed Investment. Again, I can’t stress this point enough, low Loan to Value is the key to a safe investment.
Low LTV’s simply don’t have a high default rate. Another point, all of our investors are encouraged to inspect the property first hand. We either supply comparable sales from unbiased, reliable public records or we rely on unrelated independent brokers to give us a Broker’s Opinion of Value along with supporting comparables. In these situations, we ask that the valuation be brought in at the low end of the value range; we will not “reach” for value. We then use third party sources to verify that information. We try and send those trust deed investments in the same area the investor lives.
Some of our investors use a self-directed IRA, this is a great way to invest in safe trust deeds; it can be a great tax advantage, while your money grows. We encourage you to discuss that with your accountant.