- Trust Deed Investing
There is a lot of information available about trust deed investing
, but sometimes it can be confusing. We are here to embrace those confusing topics and break it down for you in a way that you better understand. Our topic today is fractionalized trust deed investing.
What is it? What does it mean? Allow us to explain, if you will.
Your deed of trust investing will be secured by one of the following: a whole (one lender/note holder) or a fractionalized (more that one lender/note holder) trust deed. As with all financial processes, there are very different regulations that are assigned to each category be it whole or fractionalized when you go through a mortgage loan broker.
Moreover, the fractionalized promissory notes and deeds of trust are subject to regulation by the DRE (Real Estate Law, or multi-lender law) and the DOC (Securities Law). This is primarily for your protection as these laws enforce restrictions that are there to help you, such as the mortgage loan broker must service your loan and have a written agreement with you and no more than ten lenders at a time on a single investment.
If your mortgage loan broker negotiates this loan, understand that you will receive a lender/purchaser disclosure statement. This disclosure statement will identify the mortgage loan broker and the representatives, the amount and terms of the loan, servicing arrangements and information about the borrower like their income, where they work, and where they live. It is for you so that you understand deed of trust investing every little detail and nothing is left hanging in the air.
Once you have an understanding of fractionalized trust deed investing,
you will see that the process of investing
isn’t as scary as it seems, and in fact, is not only simple, but fast. Having a good understanding of your trust deed investing
will also help to stop any confusion before it even starts, which means you get your deed of trust investing
done even faster.
- Sandy Cramer Hard Money Lender