Investing in Trust Deeds With an IRA

One of the most important lessons for anyone looking to make the most of their investment strategies is to diversify. This is what makes trust deed investing such a smart idea. With trust deed investments, you’re investing in secured real estate loans. These types of loans are the most successful when combining reliable real estate borrowers with investors who are looking to focus on collateralized real estate.

Trust deed investing allows you to diversify your funds more easily and offers several notable advantages. Let’s take a closer look:

Why Invest in Trust Deeds with an IRA?

With trust deed investing, your capital is secured by one of the strongest and most finite assets available – real estate. With your self-directed IRA, you can see annual returns averaging between 8-11% for First Trust Deeds and 9-14% returns for Second Trust Deeds. If this is your first time investing in trust deeds with an IRA, or you’d like more information, our team is more than happy to work with your account custodian to help elaborate on any questions you may have.

What to Expect When You Invest in Trust Deeds with a 401(k)

Using a 401(k) frees you from many of the requirements and responsibilities that a Self-Directed IRA imposes – most notably the requirement of an account custodian. Once you have a self-directed 401(k) plan, our professional team can help you transfer qualified funds to a new plan – one that is under your complete control and direction.

Essentially, what happens here is that funds are transferred by way of personal check to the title company which puts the name of your 401(k) in the property title.

Advantages of Investing in Trust Deeds with Your Retirement Account

Let’s take a closer look at some of the significant advantages you can look forward to when investing in trust deeds and secured real estate with your retirement account.

Less Risk Due to Independence from the Stock Market

You may think that investing separate from the stock market can lead to a volatile experience, but investing in real estate is rather stable. Because trust deed investments are secured by the real estate itself, if the borrower fails to pay off the loan, the investor retains the property.

Our California financial institution takes great care to monitor potential risks and properly assess all projects to minimize risk as much as possible.

More Diversity

The underlying element of a good investment portfolio must be diversity. Real estate is one of the most diverse investments available and can help you weather the roller coaster of economical, societal and political changes that the stock market often succumbs to.

Less Time to Maturity

It’s not always desirable or convenient to have your money walled off in a long-term investment contract. Trust deeds are short term investments that usually pay off between 8-24 months. You can then direct your money into another trust deed or real estate investment project.

Higher Earning Potential

Generally speaking, trust deed are small investments and don’t attract the attention nor money of large investors – including corporations and the government. What’s more, trust deeds don’t provide instant liquidity, since they’re bound to the completion of certain real estate processes. By and large, they are generally best placed in the hands of individual investors who have the professional guidance and foresight to assess the risks and profit from the returns.

In short, trust deeds are an investment that anyone can take advantage of, providing you have the right guidance and professional advice.

Unique Opportunities for Foreign Investors

Because of their short maturity time and the fact that they are secured with actual real estate, foreign investors in particular are highly attracted to trust deeds and real estate investing.

If you’d like to learn more about the annual returns available from this and other forms of real estate investment, we’d be delighted to speak with you in more detail and answer any questions you may have. Please do not hesitate to contact us toll-free at (818) 584-2424 to learn more.