When you invest in trust deeds using funds from your individual 401k plan, choosing the best and trustworthy trust deed investment company is very crucial. There are several things you have to consider before putting your hard earned money in trust deeds investing. Remember, these funds and the income you could get from it are supposed to finance your later years so make sure to invest wisely and carefully. Below are the some of the important things you should look into before cashing out on investment:
- Make sure that the company and its representative are duly licensed to perform with this kind of business. It is best to check the Bureau of Real Estate(CalBRE) to know the details you need about the company and their mortgage loan brokers. Aside from being licensed, also make an effort to know how long they have been licensed.
– Check if any complaints have been recorded against the company or its representatives by asking the local Better Business Bureau.
– Always check on the company’s profile as well as the professional profiles of their representatives and staff and make sure you review their information particularly the rate of negotiated loans that went through foreclosure.
– When getting into the investment trust deed stage, whether with a trust deed investment company or dealing outside a company through an individual, be sure to ask whether the mortgage loan broker is the borrower or whether he or she is related to the person issuing the trust deed or mortgage notes. If he or she is a relative, a shareholder, a colleague or any how related to the person, then the transaction would be called “self-dealing” in which conflict of interest may arise.
Protect your hard earned money by deciding wisely on which trust deed investment company or individuals you deal with. Do not compromise you retirement money by not knowing well those people you involve in your transactions.