What is a Trust Deed and How Does It Work?

what is a trust deed?

Many people reach a stage in life where they have an excess amount of funds set aside in their savings account. At this stage, they often think about transferring it to a place that can earn a better return on their investment. Sometimes this is done through CDs,  investing in stocks, or index funds.

Here’s the problem: keeping your savings in a traditional bank account or CD typically only provides return on investments (ROI) at an interest rate of roughly 0-2%. Though it is safe, it is not growing much at all. On the other hand, while investing in stocks is sometimes more profitable, investing in stocks could mean you are at the mercy of changes in the market.

Another option to help grow your financial security is a Trust Deed.

This is the document recorded at the County Courthouse that provides an investor with collateral in the form of a lien on real property.

Think of it as an official receipt of equity that states how much money you have invested in a property.

In other words, you are becoming a mortgage lender; receiving interest payments on a real estate investment that you have an equity stake in.

Making Money Just Like a Bank

Trust Deeds give individuals the power to make money the same way banks do.

When a person keeps savings in a traditional bank, they may receive a lower interest rate of 0-2%. On the bank’s end, they repurpose your money and lend it to others – possibly charging 4-10% interest rates. Remember, banks make their profits by lending out your savings, not by investing in the stock market.

With Trust Deed Investing, you are cutting out the middleman (the bank), and essentially becoming the bank yourself.

Why let the bank grow richer using your money? At Advant Wealth, we believe that your money should be used to YOUR advantage.

Let us help you decide if investing in Trust Deeds is right for you.


DISCLAIMER: This blog is for informational purposes only and is not individualized financial advice.