The Norris Group Trust Deeds Blog

Trust Deed Investment News and Information

What is a trust deed investor?

A trust deed investor is a person seeking a competitive rate of return on their investment. The simplest trust deed definition is that an individual lends money to a borrower through the services of a broker. The source of this money can be from savings, credit lines, or retirement accounts. The broker finds the borrower who wants the loan, and the private party with the money provides the funding. The broker then arranges for the borrower to sign paperwork to show the world the agreement to borrow money and the terms. The video below talks a little more about what trust deed investing is.

 

 

Important Parts of a Trust Deed

1. Deed of trust

A deed of trust, once signed by the borrower, is recorded at the County Recorder’s office where the collateral is located. The recording of the trust deed “clouds” the title and lets the world know that the debt exists. When a title company researches a property, it is usually looking for trust deeds (or evidence of indebtedness). The recorded trust deed is also the trust deed investor’s security; it allows him/her to be paid when the property is sold.

2. Promissory Note

The Promissory Note (“promise to pay”) is signed by the borrower and kept in a safe place by the trust deed investor until the loan is ready to be repaid. This document is not recorded. The Promissory Note shows the details of the loan including interest rate, payment schedule, and terms.

To learn more about trust deed investing, please watch our trust deed investing video or download our free trust deed e-book. You’ll also receive updates with current investing opportunities.

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