How to Beat Uncertainty With First Trust Deed Investing

Post Category : Lending


When news about the performance of the Dow Jones average jumps from the business page to the front page, it’s seldom a good thing for folks heavily invested in the stock market, and that’s what happened recently.

I woke up one morning and the big headline from the previous day was about how the Dow had dropped 530 points on the previous trading day and more than 1,000 points for the week.

Occasions like these make me appreciate and understand even more why people invest in First Trust Deeds on California real estate.

Don’t feel helpless

I think one of the worst aspects of a drop like this is that investors feel a bit helpless. A mix of bad global economic news pushed markets down and usually it’s the foreign markets that drop first. If you’re a US investor and choose to sleep in late one morning, you might not even catch the news before the selling spree hits the US exchanges.

Further, it can happen so quickly, individual investors have no time to react. The huge institutional investors who buy and sell through proprietary computer programs are flying on autopilot and take about 2 milliseconds to make and execute a sell decision.

For the smaller investor, the lack of control can be extremely frustrating. That’s one of the things we give our First Trust Deed investors at Evoque Lending – control. When you invest in First Trust Deeds (hard money loans) through us, you set the term you want, review the proposal and make the final decision.

Customer service and investor control

Although we work hard to give our borrowers quick decisions and fast funding, our investors get plenty of time to review each proposal and determine if it is right for them. Our First Trust Deed investors are able to make smart, informed decisions because of our experience at Evoque Lending and the system we have put in place. I should also mention that Evoque Lending trust deed investments are currently delivering double-digit returns.

We are experts at vetting borrowers and getting accurate appraisals of the property being borrowed against. These are the two pillars that give our First Trust Deed investors the security and assurance they need. I’ll sum it up in a couple of bullet points.

We build in safety in First Trust Deed investing by:

– Making certain borrowers are able and willing to meet their debt obligations, and

– Being sure that borrowers have some 40 percent equity in their properties. (From the trust deed investor’s point of view this is “protective equity.”)

I’m certain that thousands of stock and mutual fund investors who were planning to cash in on some equity are now in trouble because of this latest big drop in values. In contrast, First Trust Deed investors who count on their monthly interest income will continue to receive their checks. For some trust deed investors this cash flow is directed toward their investment plans, for some it supplements other income sources.

Establish a steady cash flow

What would you do with an additional source of monthly income?

It will be interesting to see what happens with the stock market in the coming months. Often in times like these, investors start looking for other opportunities. California real estate, especially the prime markets such as Los Angeles real estate, Orange County real estate and San Francisco area real estate, could easily be where some of that investment money ends up. Time will tell.

If you want to take some of the uncertainty out of your investment portfolio – and enjoy a double-digit return on your money – give me a call at Evoque Lending. Whether you’re investing for retirement or any other purpose, we can help out. No matter where your money is today, I think you’ll see the wisdom of diversifying your investments with the addition of California First Trust deeds.

I look forward to answering your questions and telling you more about Evoque Lending.