Anything Can Happen

We know that investing can actually be a very creative thing, and there is rarely a best path to making money. However, along with this creativeness comes a need for great communication, systems which work and are followed to the letter, and impeccable record keeping. Here are just a few examples of ways your investment might vary, and how a trust deed investment company makes it all very simple and safe for you.

Some trust deed investment companies charge prepayment penalties to borrowers who pay off early. Others companies, happy to get their money back waive the penalty.

Occasionally, a loan extends. A commercial shopping center that doesn’t have enough tenants to get a permanent long-term loan is a prime example. The center is leasing fast, the borrower has enough money to continue paying the trust deed loan and asks to extend the loan for six months. Who decides if the extension happens? The trust deed investment company? No, you, the investor make the call. And here’s where communication comes into play. The trust deed investment company must contact all the investors involved and ask how they want to proceed. Depending on how much money each investor has loaned, not all investor must agree to the extension in order for the loan to continue.

Communication loan extension and /or early payoffs requires efficient and timely accounting and date processing. Because commercial trust deed loans routinely involve millions of dollars in transactions, a seasoned and experienced firm that can expertly juggle these transactions is a definite asset for the investor. Consequently, customer service is as important as your investment itself. The other most important aspect of a relationship is trust. The best way to establish trust, in this case, is to check out your trust deed investment company. Ask about their license, and what was involved in getting it. Ask about their employees, how they came to be in trust deed investing, what qualifications they have, and what experience they have. Ask about their past clients: what they thought were their big successes, and what losses they have had. All this knowledge helps you feel comfortable around them, and creates a great and trusting working relationship between you both.

The best news of all is that you’re not actually paying the trust deed investment company a fee or a commission to make use of its knowledge and efficiency. The borrower pays this cost. The trust deed company does need you to make it’s money; but then again, you need it to make your money! It’s really a great situation, where everybody gets something they need.

In the end, it’s about relationships. The relationship between you and the trust deed investment company should be one of mutual understanding. The strength of this relationship will make investing in trust deeds pleasant and profitable. In fact, you may look on trust deeds as a financial form of CPR, since they can breathe new life into your IRAs and savings accounts.