Buying my first trust deed note.

[Account Closed]

After doing some search and research I'm investing in my first trust deed note. 50% LTV and it pays 9% monthly for 60 months. Approx. investment 50k. The bad thing is that the home owner can pay me off before the sixty months and I will have to look for another investment. Does anyone have any investments in trust deed notes, and what returns are you getting? Thanks Hugo.

[Doug Smith]

Hugo, welcome to the world of investing in debt rather than investing directly in the real estate. It is, indeed, a different animal. There are many ways to invest in notes, therefore, the returns you will see will be dramatically different. You can buy notes and collect the interest. You can investing in non-performing notes and work to get the property back and return a tidy sum. Overall, it depends on what you are focusing on as to the returns you can achieve. Our firm currently only buys non-performing notes, we work through the issues and normally get the property back through a deed in lieu of foreclosure or a foreclosure. Our returns are significantly North of the one you are getting on the note, but there it is a different investment that is focused more on a capital gain rather than cash flow. There are tons of ways to invest in this world. Welcome! Let me know if you ever have questions. I'm happy to answer them.