The Edwards Companies. Investment Real Estate Blog.

The Edwards Companies. Investment Real Estate Blog.

Investment Strategy: Private Lending with Trust Deeds

System - Thursday, September 17, 2015

Investors seeking a truly passive investment strategy - combined with the security provided by Edwards Capital Partners | Trust Deed Real Estatereal estate assets - are likely to discover private lending using trust deeds to be an excellent investment alternative. This summary provides a brief overview of the Trust Deed investing strategy. A private lending trust deed real estate investment exists when an investor makes a loan to a borrower which is evidenced by a promissory note. The instrument used to secure the note is known as a deed of trust (i.e. trust deed) against a particular asset or real property. The deed of trust that is recorded publicly as evidence that a loan has be made against the property in the form of a lien. The deed of trust is the investor's security that requires the loan be repaid at maturity or in the event the property is sold.

The promissory note is the promise by the borrower to repay the loan made by the investor. Also signed by the borrower (i.e. business entity), this document spells out the terms of the borrower’s loan, including the amount, interest rate, payment frequency, maturity date, among other specific details.

What are the benefits of trust deed investing?


A trust deed real estate investment strategy can provide a means to diversify one's portfolio while serving as a more stable alternative to traditional forms of investment -- such as stocks and other forms of fixed income investments.

Consistent Cash Flow

Trust deed investments offer an attractive yield on invested capital - paid to the investor - typically on a monthly (or quarterly) basis. The consistent cash flow acts as a stream of income to the investor similar to that of an annuity. 

High Yield Returns

Investors often realize higher returns using trust deed real estate investments that are very favorable relative to other fixed income investment options with similar risk profiles.

Security of a Real Property

Private lenders have the peace of mind in knowing that their investment capital is secured by real property (i.e. real estate). Additionally, another layer of security is added as the investor is specifically named on the property insurance and title policy as an "additional insured".

Passive Real Estate Investing

Trust deed real estate can be the ideal approach for private investors seeking the advantages of investment real estate - both security and higher yields - but with the reduced hassle of every day property management related activities.

About Edwards Capital Partners Edwards Capital Partners is a private real estate investment firm based in Raleigh, NC. As a subsidiary of The Edwards Companies, Edwards Capital Partners acquires, redevelops, and operates well-maintained residential real estate assets using private investor capital. Incorporating a diligent and disciplined approach to capital investment, investors receive outstanding risk-adjusted returns with monthly payments secured by a Deed of Trust on the specific property. Contact Edwards Capital Partners to learn more about how you can diversify your portfolio using Trust Deed investing and Raleigh investment real estate.


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