Trust Deeds
Why Trust Deeds Investing Is Superior
Our Track Record
- Max and Bobby have been investing in real estate since 2000
Our #1 Choice
With Trust Deeds, our proprietary underwriting process and technology platforms provide investors with confidence in our evaluation, selection, and operational processes, allowing them to invest without direct involvement in the loan process.
At BetterCapital Real Estate Fund, LP we prioritize full transparency in our investments, including Trust Deeds. We have experience with investing in many varieties of other investment types, such as Limited Partnerships, REITs, stocks, bonds, mutual funds, and commodities, and have often found it difficult to fully understand and assess the risks involved, so Trust Deed Investment is still our #1 choice.
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 potential risk of heavy losses.
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. Rates of Returns are usually low.
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 most investors compared to Trust Deed Investing which returns 9% to 12% under contract.Â
Consistent Returns: 9% to 12% APY
Consistent returns are a key motivation for investing in Trust Deeds.
At BetterCapital Real Estate Fund, LP we personally invest in this asset class because of the consistent yields of 9% to 12% APY 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.
While it is always important to diversify and take some calculated risks with investments, it is also wise to allocate a significant portion (10%-20%) of your portfolio to investments that offer consistent returns, such as Trust Deeds. To further mitigate risk, the company is highly selective in its lending, demanding higher rates of return and maintaining high credit standards, including lower loan-to-value ratios and income verification.
