Investing in real estate is one venture people disregard because they don’t think they’re eligible, but they couldn’t be more wrong. When you ask someone if they invested in real estate, they’ll most likely respond by saying it’s too much of a risk or they’re not “rich enough.”
A large percentage of Americans own a home, which is a large personal investment that appreciates over time. Trust deeds are similar to mortgages, but the number of parties involved differs. Instead of running away from potential investment opportunities, learn the top five misconceptions of trust deed investing to help you make a lucrative financial decision.
It’s Too Risky and Difficult
When you ask someone about investing in anything—stocks, real estate, Bitcoin—they may reply that it’s too risky or difficult to get into. While learning about trust deed investments may seem intimidating, it doesn’t have to be. If you’re thinking of investing in anything, you should reach out to a financial advisor to walk you through the process and give you tips on property investments.
Trust Deeds Are Just for Rich People
Historically, trust deeds were investment opportunities for the wealthy or “accredited investors.” Although some states still uphold those standards, over 20 states regulate trust deeds as a mortgage product, opening up this investment opportunity to anyone that meets the minimum financial requirements. To be deemed “suitable,” your net worth must be more than $250,000 or have an annual net worth of more than $70,000. These values debunk the top misconception about trust deed investing.
It Costs Too Much To Get Started
Contrary to popular belief about trust deeds, they don’t cost you or the investor much to start. Private money lenders get their money from borrowers, allowing the investors to help kickstart investments. The required fees and payments are typically adjusted to your monthly income, ensuring you’re not paying more than you’re making.
You Can’t Do It if Your Broker Doesn’t Offer It
Many types of financial brokers, planners, and advisors provide various investment opportunities. However, many are prohibited from investing in products they don’t represent. Don’t be mistaken; they are, but it’s best to work with financial planners with diverse portfolios and expertise.
Hard Money Loans Are for Unfavorable Borrowers
It’s no secret that financial institutions regulate their loans based on your income, credit history, portfolio, and many more values. This may be intimidating for borrowers seeking to inquire about a trust deed. However, Val-Chris Investments doesn’t look at your personal credit history, but at your property portfolios and will work with you to start your investment journey.