Most investors today are looking for opportunities to earn more monthly income while maintaining a diversified portfolio and protecting their principal. There are two primary reasons investors may want to include fixed income investments in their portfolio:
Expert Management Trust deeds secured by real estate, when professionally underwritten and managed, have become a good investment alternative for the income-producing portion of an investment portfolio.
Diversification Trust Deed investing offers many investors, particularly those concerned about greater protection of principal, with another method of diversification to help reduce volatility in their portfolio and a way to generate additional income.
Historically, trust deeds have outperformed cash investments (bank deposits, CDs, money market instruments and US Treasury bills), and exhibited less volatility than stocks. Although stocks and mutual funds may offer high returns, they may also have greater risks. Furthermore, the return on trust deeds can offset the negative return on stocks during periods of market downturn. As a result, adding trust deed investments to an all-stock portfolio may generally increase the overall return and lower the overall risk of your portfolio.
Income Fixed-income investments involve loaning money for a period of time in exchange for periodic interest. Investments in trust deeds can generate additional income to supplement existing income sources.
Tax Advantage The interest income generated by some fixed income investments in a retirement account such as an IRA may be tax deferred or tax exempt from federal and/or state income taxes. Please consult with your tax advisor.
Additional Benefits of Trust Deed Investing: • No Load Investment - Wilshire does not charge you a fee for investing.
• Higher Fixed Yield – Goal of 8 to 10% annualized interest paid monthly.
• Security – Ownership of trust deeds secured by California real estate.
• Stable Income - Interest rate stays constant throughout the term of the loan.
• Principal Protection - Protective equity cushion of approximately 35% as a buffer to assist in the protection of invested principal.
We recommend that investors become familiar with trust deed investments prior to investing. Among other materials, the California Department of Real Estate has published a booklet on trust deed investing which may be located at: www.dre.ca.gov/pdf_docs/re35.pdf
Disclosure: Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. State law dictates that we acknowledge that interest and principal on trust deeds is not guaranteed. No investment is completely risk free and past performance is not a guarantee of future results. Before investing, investors must be provided applicable disclosure documents. Mortgage Broker fees will apply unless stated otherwise. California Department of Real Estate license number 01523207. Equal Housing Opportunity
