Palo Alto, CA (PRWEB) March 25, 2013
Trust deed investments and Hard Money Trust Deed Investing now makes up 3% of all new loans funded in California. These trust deed investments can offer high returns with low risk. Trust deeds are similar in function to traditional conventional mortgages. The primary difference is that while mortgages involve only two parties, a borrower and a lender, trust deeds involve three: a borrower, a lender and a trustee. The trustee is a third party who holds legal title to the property in question on behalf of the lender until the loan is paid in full. In the event of default, the lender can take possession of the property. Investors can invest in trust deeds either by directly making a loan or by purchasing an existing promissory note. Each of these notes need to be serviced- the borrower receives regular payment coupons, insurance monitoring, tax reporting and general note management.
The double-digit returns on trust deed investments touted by American Private Money Group is now even better. Usually, servicing a note runs at a cost of .5%-1%. That means if a note is paying 12%, the realized yield that the investor receives after servicing is 11%-11.5%, respectively. As rates push down due to high demand and competition in trust deed investing, every penny counts for a full investor yield.
American Private Money Group is now offering free servicing for all trust deed investors. The demand for local trust deed investors seems to be so high that many company's are now finding ways to stand out from their competitors by providing higher yields to trust deed investors.
New California trust deed investors are encouraged to register at AmericanPrivateMoneyGroup.com. The company has designed a new online automated registration system that allows individual trust deed investor the ability to pick and choose what type of trust deed opportunities they wish to look at and what preference of borrower, properties types and terms they prefer.
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