Trust Deed Investing

by Wilshire Finance Partners

An investment of a lien of the bare legal title of a property to a trustee to be held pending fulfillment of an obligation, usually the repayment of a loan to a beneficiary. The lien on the property is superior to any other lien of record. Investing Trust deeds includes two parties: The first party is called the borrower, or trustor. The borrowing party must qualify by providing adequate real estate collateral. The second party is the lender, which can be an investor, grantor and/or beneficiary. The lending party is a typically reserved role for an institution that receives, lends, exchanges, and safeguards money and, in some cases, issues notes and transacts with other financial businesses. Upon qualification from the second party, the first party will receive a loan which can then be invested for the loan amount. Trust deeds offer a creative real estate investing avenue to clients looking for high yield income investments.