Who is the typical trust deed investor? (Part 2)

Post Category : Lending


We’ve been covering some of the basic and most important information about investing in trust deeds in recent weeks. We defied what it means to invest in a first trust deed and then we turned our focus on who puts their money in these investments. In our first article answering the “who” question, we discussed private individuals who invest in trust deeds. Today we’ll look at financial professionals and institutions.

Wealth managers – Some individuals who either inherit great wealth or build their financial assets on their own would rather not actively manage their wealth. They hand off the responsibility to wealth managers. These professionals are charged with protecting and growing the value of the assets entrusted to their management. Many of these professionals leverage trust deed investing to establish a good growth rate and protect the underlying value of the assets they manage.

Non-profits and endowments – During the last severe downturn in the stock market, many non-profits and endowments lost a tremendous amount of their value. Further, institutions that depend on income from their endowments, found themselves in a dire situation. Today, many of these organizations are investing a portion of their funds in trust deeds. They are finding the safety they need and the steady payments help provide the predictable income they require.

Pensions and retirement programs – Retirement programs, like those for various public employee groups, found themselves in a similar situation to the large endowments when the stock market had its last major “correction.” They find that trust deed investments provide the required security and income.

As I gave you this list of professional and institutional investors who often have a portion of their assets invested in trust deeds, I mentioned the hit that many of them took when the stock market lost so much of its value during its last significant downturn. Let me elaborate on that for just a moment.

If you recall, all kinds of exotic investments were popular then. I suspect that many money managers had millions of dollars tied up in hedge funds that frankly, they didn’t understand. The simplicity of trust deed investing must be a great relief for many of these money managers. Trust deed investments require far less research and are far more predictable over time. These same attributes are what make them good investments for individuals.

Investment tip: Never put your money in an investment vehicle that you don’t fully understand!

And before I leave you today, let me briefly rundown what makes First Trust Deed investing simple to understand and a solid strategy at Evoque Lending. We are experts in hard money lending on Los Angeles real estate, Orange County real estate and San Francisco area real estate. We have more than 15 years of experience in California First Trust Deeds. The two cornerstones of safety that we deliver to our investors are:

 40 percent protective equity, and

 Thoroughly vetted and qualified borrowers.

By assuring sufficient equity in the underlying property and being certain that borrowers are able to meet their monthly obligations, our investors can rest assured that they will receive the income that they are counting on while their principle is protected; and by the way, right now our investors are enjoying double-digit returns on their money.

So whether you see yourself reflected in the investors I outlined above, or you’re an individual who needs to diversify your investment portfolio and boost its earnings, give me a call and I can answer your questions.