Trust Deeds: The Unsung Hero of Alternative Real Estate Investments

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Trust deed investing has been around for decades, offering private investors a myriad of opportunities to invest in real estate development and provides benefits such as diversification, capital preservation, and historically high-yield returns. And yet, it still receives little merit and remains one of the most underutilized alternative forms of real estate investing in an IRA. Private lending, such as through trust deeds, is unfortunately marred by dark periods of predatory lending practices, as well as the misconception that they are reserved for borrowers with bad credit and the exceedingly wealthy, who can afford the risk to lend to them.

There are two important factors that the general public fails to acknowledge. The first is that, as a consequence of the housing bubble of 2008, the government cracked down hard on the lending industry. To this day, it is one of the most highly regulated industries on both the state and federal level. Second,…

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