If you think that foreclosure in mortgage notes and trust deed investing is a major risk to your investment particularly in your Solo 401 k plan, then perhaps you could not be right all the time. These days, sales of home properties are on the rise especially that buyers are already recovering or have recovered already from the great recession. Most of these buyers are aspiring homeowners or real estate investors who are on the lookout for bargain homes and foreclosed properties.
Your trust deed investments are actually safe because one way or another you could recover your invested amount even if foreclosure takes place. Retirement account holders of self directed plans know that diversification of investments using their retirement funds can give them more profits and stable income, that is why trust deed investing and mortgage notes are some of the best real estate investment they can acquire in order to diversify their retirement portfolio.
In fact, these two types of investment are equally passive like rental property investment. Actually, if you think more about it, it could even be more passive particularly for first time investors since there are no particular skills required in order to make this investment work effectively. Unlike in rental property investments, skills in property management and basic experience in being a landlord is important.
The demand in home sales after the great recession and the limited number of inventory made a good sale of foreclosed properties these past years. This could mean that mortgage notes and trust deed investing may not be too risky if foreclosure becomes inevitable
Foreclosed properties are also in demand for home flippers as these properties could provide them with more profit in a shorter period. The limited housing inventory and this trend in sales of foreclosed property are good news for those who wish to make use of trust deed investment and mortgage notes.