Were you around when online stock trading sites, like Etrade, were just starting out?
They got off to a pretty fast start because ordinary people could buy and sell stocks at a very low cost per transaction. Ever since this industry began, it has been trying to find better ways to “educate” users about investing.
I’m making this point because knowing and understanding your investments should be one of your most important financial goals. I won’t go as far as to say that understanding stocks is impossible, but to really know any single stock well enough today to be able to predict what it will do tomorrow, is about as close to impossible as you can get.
The exception to this is “insider” information and there are supposed to be laws against trading with inside information. Sometimes, however, I wonder if those laws are ever enforced, but that’s a subject for someone else to write on.
First Trust Deed investing
This highlights one of the strengths of investing in First Trust Deeds. They really reflect the value of a piece of real estate. I want to make a quick comparison here. Let’s take the example of a single home on a street of similar homes. It is pretty easy to determine the value of that home. It won’t be too different from the value of the similar homes that surround it. Ever.
Contrast that to stocks and for this example, I’ll single out healthcare stocks. Although several healthcare corporations may seem like the provide the same services, it’s very possible that a handful will perform well in the market while some have share prices that tank. Predicting the ones than tank takes more knowledge that the average investor could ever accumulate. (Insiders will know, however.)
I think almost all individuals can understand the fundamentals of real estate well enough to be successful investors, whether they buy properties directly or purchase vehicles such as First Trust Deeds. Experience is one of the main factors and at Evoque Lending we use our experience to help our investors grow their wealth.
Years of experience
We have been helping investors and property buyers for more than 15 years. If you know the Los Angeles, Orange County, San Francisco and general California real estate market, you know that we have faced a variety of market conditions during that period of time. And, our success is testimony to our ability to navigate through different economic climates, with apologies for the mixed metaphor! We bring this experience to the table every time we sit down with investors to discuss their goals.
From what I said above, you may deduce that the value of a property is critical to any First Trust Deed. At Evoque Lending we protect our investors by providing 35 percent protective equity in every loan we structure. Further, we take great care assuring that borrowers are able to meet their monthly obligations. Those two factors combine to give investors the level of safety that they require. In addition to that safety, they enjoy double-digit returns on their money and rates like that enhance virtually any investment portfolio.
If investing in First Trust Deeds is new to you and you would like to learn more, please give me a call. That way you’ll be in the best position to determine if this investment is right for you.