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Frequently Asked Questions About Trust Deed Investing


Question

What exactly is a trust deed - and, what are trust
deed investments?




Question
What are the benefits of trust deed investing?

Answer

A trust deed (or a deed of trust) is a document filed with a county recorder’s office indicating that there is a loan against a property - creating a secured lien on the property, providing collateral for the lender or lenders.


Answer
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 10% - 12%. But, because the loans are secured by the property, the risk is still relatively low. Trust deeds also offer a vehicle for investing in real estate without the need to manage property.
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