Retirees Flock Into Trust Deed Investments

[Corey Dutton]

Trust deed investments have been growing in popularity among retirees, and most rapidly in the markets that saw the fastest recovery after the 2008 meltdown. Particularly in one’s own real estate market, where one is comfortable with values in general, a trust deed investor can easily spot a real estate transaction that makes sense to lend on. And rather than owning the real estate themselves, trust deed lenders can instead make a loan on real estate and earn a handsome return.

Retirees who count on regular income, particularly those located in California, Arizona, and Nevada, have flocked into trust deed investing in recent years for reliable monthly payments. The tremendous growth in private money lending has also been indirectly fueled by bank qualification standards, which have remained stubbornly high in the post recession lending environment. Borrowers who cannot qualify for bank loans are seeking out private money loans from trust deed investors. Private money loans aren’t just for the desperate, or those with bad credit scores. These loans, also called hard money loans, fill a multitude of purposes and are a vital current of credit in the economy. Private money loans are assisting real estate investors to transform vacant, run-down buildings into gorgeous real estate that generates revenue. These loans are also being used to finance inventory purchases for business owners, while others may be used purely for their speed of funding. With so many uses for these non-bank loans, it’s no wonder that trust deed investing has grown so rapidly in recent years.