If you're a smart investor and have been around the scene for long enough, there's definitely no possibility that the question whether second trust deed investment is a smart move or the numerous deeds for sale that are afloat in the market would bring better returns for you? Both the options are fast gaining popularity as they not only promise better returns but also outperform the meager interest that most of the banks offer as "interest". The return that you get from second trust deed investments when compounded over the years easily takes shapes of a small fortune.
So the next logical question in line should be- what are the good deeds for sale and how to go about it? No matter even if you're an experienced investor- you should do a thorough homework before investing so as not to lose even a single penny. You should be through with the tricks of the trade and here we focus on five broad categories that would come handy to you while buying first and second deeds from banks namely Property (Collateral) or Appraisal, Title Insurance or Condition of Title, Borrower, Transaction and Exit Strategy.
Appraisal
The collateral should be at least twice as valuable as the loan that you would be taking if it's the first deed and most of the experts recommend against going for second or other junior investments if you're new to this game.
Condition of Title
Generally this investment is same as what it is recorded against- the property. Make sure that you go for title investment that is going to safeguard you against all the liens you're unaware of like incorrect ownership. Ask questions that would safeguard you- like would the assignment of the trust deeds that you're buying would be recorded in your name especially in the country where recorder?
Borrower
Always remember that banks don't make a loan just because there's a lot of equity but mortgage bankers, credit unions, Banks and all other "institutional lenders" require verification of assets, income that is documented with a likelihood of continuance, credit and compliance with the banking rules and laws.
So the next logical question in line should be- what are the good deeds for sale and how to go about it? No matter even if you're an experienced investor- you should do a thorough homework before investing so as not to lose even a single penny. You should be through with the tricks of the trade and here we focus on five broad categories that would come handy to you while buying first and second deeds from banks namely Property (Collateral) or Appraisal, Title Insurance or Condition of Title, Borrower, Transaction and Exit Strategy.
Appraisal
The collateral should be at least twice as valuable as the loan that you would be taking if it's the first deed and most of the experts recommend against going for second or other junior investments if you're new to this game.
Condition of Title
Generally this investment is same as what it is recorded against- the property. Make sure that you go for title investment that is going to safeguard you against all the liens you're unaware of like incorrect ownership. Ask questions that would safeguard you- like would the assignment of the trust deeds that you're buying would be recorded in your name especially in the country where recorder?
Borrower
Always remember that banks don't make a loan just because there's a lot of equity but mortgage bankers, credit unions, Banks and all other "institutional lenders" require verification of assets, income that is documented with a likelihood of continuance, credit and compliance with the banking rules and laws.
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