Insights + Resources

Trust Deed Investments

Nov 18, 2019

Trust deeds may seem to be a fairly straightforward form of financial investment. You may have heard of them in passing without being certain exactly what they are. It’s also referred to as a private trust deed.

What are they? At the core, these private trust deeds are sort of like mortgages that are used by real estate investors to borrow money to purchase property or finance buildings. The “sort of” part comes from the fact that these private trust deeds are not exactly like the mortgage a homeowner might take from a bank or other mortgage lender to buy a house.

That said, private trust deeds are vehicles through which an investor or group of investors, through a broker, offers financing (sometimes through “bridge loans”) for the projects of real estate investors.

Why the Caution?

If you’re detecting a note of caution, there’s a reason. While trust deed investments have great potential for returns, it’s important to remember that the risk may be more than you’re willing to take on. This even goes for daring investors who have a particularly aggressive investing style.

Not All Trust Deed Investments are Built the Same.

They may have a number of issues that could be unappealing to the risk conscious: high loan-to-value ratios, internal expenses, lack of liquidity, and even situations where the managers of the trust deed avoid risk by putting all the weight on investors like you. These are just a few of the potential issues.

On the other hand, some trust deed investments avoid these pitfalls and represent less-risky prospects. However, it can be difficult to tell the difference without a trusted financial professional on hand.

It’s important to know what you’re getting into with any investment. Ask questions, keep your risk aversion well in mind, and request that your financial professional put the potential for any new investment in the context of your overall financial strategy.

Tags: , ,

More Insights

Estate Planning – Protecting Your Assets
Jun 9, 2025

You’re beginning to accumulate substantial wealth, but you worry about protecting it from future potential creditors. Whether your concern is for your personal assets or your business, various tools exist to keep your property safe from tax collectors, accident victims, health-care providers, credit card issuers, business creditors, and creditors of others. To insulate your property … Continue reading “Estate Planning – Protecting Your Assets”

Estimating Your Retirement Income Needs
Jun 6, 2025

You know how important it is to plan for your retirement, but where do you begin? One of your first steps should be to estimate how much income you’ll need to fund your retirement. That’s not as easy as it sounds, because retirement planning is not an exact science. Your specific needs depend on your … Continue reading “Estimating Your Retirement Income Needs”

Market Update – Volatility Likely to Bring Opportunities as Trade Uncertainty Continues
Jun 4, 2025

As June begins, markets continue to navigate a complex landscape shaped by trade policy shifts, an uncertain economic and earnings outlook, and bond market headwinds. Several key developments in recent weeks may have implications for markets:

Market Update – Tariffs Bring April Showers
Apr 4, 2025

April showers came a month early as stocks fell in March. Tariffs were the primary cause of the market jitters, although that uncertainty became too much for markets to shrug off once economic data started to weaken.

Six Keys to Investing
Apr 2, 2025

A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully.

Insights + Resources >