If you’re looking for a lucrative investment opportunity in the bustling market of Westchester County, NY, trust deed investments may be just the avenue for you. These investments can offer solid returns and serve as a valuable tool for diversification within your portfolio.
In fact, trust deed investments are a well-kept secret of the wealthy and a proven method for generating much larger returns on investments than traditional market options. Unlike stocks and bonds, trust deed investments offer a tangible, secured investment backed by real estate, which can provide peace of mind and security for investors.
Essentially, trust deed investments involve a private loan that is secured by real estate, usually for a short term of two years or less. Interest rates for these loans can range from 7-15%, far higher than the rates offered by traditional lenders, who typically lend at rates between 3-7%. Despite the high-interest rates, borrowers are willing to pay these rates, leading to an increasing number of investors who are interested in funding trust deed investments.
Why would investors take deals that banks would pass on?
Investors may choose to take on deals that banks would pass on for various reasons. One of the primary reasons is that banks and tradtional lenders are subject to a multitude of regulations that private money lenders are not bound to follow, particularly since they are not federally insured. This regulatory framework can make it challenging for borrowers to secure financing through traditional channels, especially if they do not meet the strict criteria and guidelines set by the banks.
In contrast, private money lenders may offer more flexible terms and may be more willing to take on riskier investments, which banks may avoid due to regulatory or internal policies. For instance, private money lenders may be willing to provide financing to borrowers who have low credit scores, limited financial resources, or less-than-perfect financial histories.
Moreover, local trust deed investments, which are commonly used by private money lenders, resemble the old-school form of investing, which is built on trust and personal relationships. Trust deeds are typically secured by real estate, and the lenders rely on the borrower’s equity in the property as collateral. This type of investment is founded on mutual trust between the borrower and the lender, and it often involves deals that are sealed with handshakes, rather than complex legal agreements.
Overall, private money lenders can provide an alternative source of financing for borrowers who may not meet the strict criteria of traditional lenders. By taking on deals that banks would pass on, investors may be able to secure potentially lucrative investments that they would otherwise miss out on.
Trust deeds aren’t just based on credit scores and ratios.
For these deals, insider knowledge, relationships and potential value matters a lot more than the score assigned by a computer.
But like other high-return investments, there’s a lot of risk involved if you don’t know what you’re doing.
The investors who make a lot of money on trust deeds work with highly reliable brokers, attorneys and experts who help them evaluate the full potential of the loan – and assess the risks involved.
If you’re interested in capturing solid returns from the local Westchester County trust deed marketplace, we may be able to help you.
We get requests from people who are looking to borrow money secured by real property (with equity!) who don’t qualify for traditional financing.
As a general rule, most investors want a high degree of security that the borrower stands to make 20-50% ROI with the funds he or she borrows. If the borrower’s plan is too risky or shows signs of probable failure, it’s wise to pass on the investment.
We’re not brokers – sometimes, we may partner with qualified investors to secure deals, and a trust deed is one tool at our disposal.
If you’re looking to invest in Westchester County NY real estate – not just in trust deeds – give us a call anytime at (877)REI-MGMT.
If you’re interested in exploring the potential of investing in real estate in Westchester County, NY, there are numerous avenues available to you, beyond trust deeds alone. Whether you’re a seasoned investor or just starting out, our team is here to offer guidance and support every step of the way. By taking advantage of our services, we can help you identify profitable opportunities in the local real estate market and develop a strategy that aligns with your investment goals.
With our expertise and experience in the industry, we have a deep understanding of the nuances and trends of the Westchester County real estate market. We can provide you with valuable insights and knowledge to help you make informed decisions about your investments. Our commitment to providing exceptional customer service means that we are always available to answer any questions you may have and provide personalized advice tailored to your unique needs.
So, if you’re looking to maximize your returns on real estate investments in Westchester County NY, we invite you to reach out to us at (877)REI-MGMT. We would be more than happy to discuss our services and explore how we can help you achieve your financial goals through real estate investing.