Is the trust deed being brokered by an experienced, licensed and reputable investment broker?
Would you consider removing your own appendix? Well, seeking experienced, professional help works better.
It is not legal for someone to assume/guarantee responsibility for risks associated with your trust deed investments. It is like riding in an airplane. It does not matter what your broker says, or agrees to in writing, you are risking your own money!
Take time to verify your broker's track record, background, experience, and professional standing. The number one best protection is always your knowledge and understanding.
Money in a bank won't even keep pace with inflation. Homes offer safe, solid, high-yielding opportunities. Use a reputable broker and these tips.
As a condition of funding, are you receiving the maximum title insurance available?
Require the same forms the banks get, when they fund a loan. Anything less than maximum coverage results in loss of investment dollars. Maximum coverage takes care of problems due to defects of title, mechanics liens, and other items not covered by cheaper, standard coverage. The borrower pays for it, so require the maximum lenders title insurance coverage.
Well-meaning and honest brokers, friends, partners, and relatives have been known to bury unknowledgeable friends, partners and relatives purely by accident. Prepare for any unforeseen claim to title, dispute, mechanics lien, or other surprise. Full coverage provides this. Also, always obtain the maximum title insurance coverage update. Do this any time you rewrite, extend, alter, modify, or change any note or deed of trust.
Make every investment funding check payable directly to the title company, handling the escrow.
If investors don't let their broker handle their money, there is no chance for it to be mishandled. Now, this is not implying brokers are dishonest. However, if they never handle your money, AT ANY STAGE OF THE INVESTMENT PROCESS, your funds will "NEVER" be mishandled. This includes accidentally. RIGHT? Really, a better name for this is the $50 million dollar rule. trust deed buyers
More tips for trust deeds.
There are more tips to learn for improving your success with loan escrow, for trust deeds. Some cover establishing property value, determining a safe amount to lend, funding junior loans (or seconds), and examining the borrower.