Who is the typical trust deed investor? (Part 1)

Post Category : Lending


At Evoque Lending, when we’re asked what kind of investors put their money in trust deeds, we’re tempted to put a fun spin on the answer and say something like, “Smart investors!” But while we believe that savvy investors do see the benefits of trust deed investing, the individuals and organizations we serve are widely varied and deserve to be described in more depth.

Now that we’ve broken down trust deed investors into two big groups – individuals and organizations – let’s drill down further.

Who Is The Typical Trust Deed Investor? (Part 2)

General investors. If there are any investment “truisms” that extend beyond short or long-term economic trends, it’s that an individual investor’s portfolio should be diversified. Not even the best experts have crystal balls that can accurately predict the next major twists and turns of our economy, so it’s always a smart idea for investors to hedge their bets across a broad selection of investment vehicles. With their rate of return, safety and availability, trust deeds should be considered for virtually any investor’s diversification strategy.

Retirement investors. Retirement accounts are a subset of an individual’s general investment portfolio and trust deeds make an excellent addition here as well. However, with all the big brokerage houses constantly advertising for IRA and 401(k) business, many investors don’t know that trust deeds can easily be included in these types of accounts. At Evoque Lending this is a significant portion of our business and we are experts at working with our clients to get their retirement accounts setup for trust deed investing.

Tip: If you feel you are late in implementing your retirement plans and need to play a little “catch up,” check the current rates Evoque Lending investors are getting and compare it to the other options for your retirement portfolio. We believe that trust deed investing can make a major difference.

Retirees. As well as helping you prepare for retirement, the way trust deed investing works can be ideal for retired individuals and couples. When you invest in a trust deed, you essentially receive a monthly payment for the amount of interest your note is earning. This monthly payment stays the same throughout the term of the note, giving retirees the ability to budget and plan. Also, it’s important to note that these monthly payments don’t touch the principle you have invested. If you took a similar, steady payment out of other investment accounts, in many cases you’ll find yourself dipping into your principle.

Heirs. Individuals who inherit wealth often seek to protect and grow their worth without having their management duties consume their lives. Setting up their assets to provide a substantial income while preserving their core value is important. Including trust deeds in a diversified strategy can greatly help meet these investment goals.

Do you see yourself among any of these individual investors? In the second part of this series, we’ll look at the kinds of organizations that can benefit through investing in first trust deeds.

And in the meantime, if you have any questions about first trust deed investing for California real estate, including how Evoque Lending works to protect your capital, please give me a call or send me an email. We have been specializing in trust deeds for Los Angeles real estate, Orange County real estate, and San Francisco area real estate for more than 15 years. We have the experience and systems in place to greatly enhance your ability to achieve your goals.