Trust deed investing using your Solo 401k or self directed IRA allows you to act like a bank in so many ways without the hassles that other types of real estate investment brings
Like a bank, you can us your Solo 401k and self directed IRA funds to finance real estate investments like trust deed investing. We all know that real estate has been consistently the top long term investment choice of Americans whether the richer ones or those from the lower income bracket. Real estate, as an investment option, has so many good qualities that investors are attracted to. Aside from the secured income and low risk, real estate provides high yield returns just like investing in stocks but will not give you the worry of losing your initial investments.
If you are a real estate retirement investor who is not attracted to managing a property or you are not seeing yourself as a landlord, perhaps trust deed investment is the type of real estate investment that fits you. Instead of being a landlord or a property manager, you become a bank, a mortgagee, or a lender and the beneficiary of the real estate property under the signed agreement. Like a bank, the amount you lent to a borrower earns interest that is charged every month, making you receive monthly earnings for your retirement account.
Like a bank, trust deed investments or buying of trust deeds are secure and guaranteed because the of the legal processes involved in the transaction particularly the issuance of a promissory note which is supported by the deed of trust or mortgage note, and if the other party failed to make payments or defaults on the agreement, you as the lender could get a hold of the real estate property. You can recover the loan amount when the property goes through foreclosure and gets sold. Trust deed investing allows you to act like a bank and use your retirement account to lend funds to a borrower without the hassle of collecting payments and dealing with the borrower.