Why Trust Deed
BetterCapital Real Estate Fund, LP vs. Alternatives
Some of these investments, such as stocks and mutual funds, may lack transparency and have hidden fees that can reduce returns and may have significant losses. Others, such as CDs, may offer a safe but artificially very low return. Limited Partnerships may have potentially attractive internal rates of return, but high loads, risk, and distribution costs can eat into actual returns.
Let’s Look At a Few Popular Types Of Investments:
Stocks
One potential concern with investing in stocks is the lack of transparency at large public companies. It can be difficult for investors to fully understand the inner workings and financial health of these companies, leading to uncertainty about the risks involved.
Mutual Funds
Mutual funds can carry hidden fees and costs, such as large loads and inefficient distribution, which can reduce returns for investors. It is important for investors to carefully review the fees associated with a mutual fund before making a decision to invest.
Bonds
When investing in bonds, it is necessary to trust the rating agencies that assess the creditworthiness of the bond issuer. However, there may be a potential conflict of interest, as the bond issuer often pays the rating agency. This can raise questions about the objectivity of the rating.
CDs
Certificates of deposit (CDs) are a relatively safe investment, but they tend to offer artificially low returns of 1-2%. This may not provide sufficient growth for some investors.
Consistent Returns: 9% to 12% APY
Consistent returns are a key motivation for investing in Trust Deeds.
At Better Capital Fund, Inc., we personally invest in this asset class because of the consistent yields of 9-12% that can be earned through well-executed Trust Deeds. This level of return has the potential to double your money in just seven years, making Trust Deeds a strong option for a portion of any investment portfolio.
Investment vehicles like mutual funds sometimes suffer from obscured charges, costs, and fees which can erode the returns and even lead to substantial losses. On the other hand, instruments like Certificates of Deposit, while offering a layer of safety, often yield unsatisfactory low returns due to artificial rate suppression.Â
Therefore, it’s important for investors to scrutinize every investment avenue thoroughly, considering all hidden factors that could potentially affect their profits and increase risk, before committing their funds.
