Southern California Real Estate: The Lowdown on Trust Deed Investing
Channel: Melinda Elmer
Date: 2016-06-22

Trust deed investment is a form of property investment that is appealing to some people who haven't seen the returns they wanted from things like stocks, bonds, or mutual funds. It's essentially the bank approach - you fund the financing rather than gaining equity from ownership. I sat down with Jonathan Marshall from Bella Vita Property Investments to break down the topic a bit more for you. To learn more about this type of property investing, watch this short video.
http://melindaelmer1.blogspot.com/2016/06/southern-california-real-estate-lowdown.html



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Melinda Elmer
The Elmer Team
66621 E. Pacific Coast Highway
STE 150
Long Beach, CA 90803
Phone: 562-316-2915
Alt. Phone: 562-316-2995
Fax: 562-961-1401
melinda.elmer@gmail.com

Transcription
Today, we’re talking all about trust deed investing with Jonathan Marshall from Bella Vita Property Investments.

Trust deed investing is similar to what the banks will do when they finance real estate acquisitions. Many people think of real estate investment from the ownership approach, as if they'll own the property. Trust deed investing is the banker's approach, where you finance the real estate by loaning an investor money for a property. Like a bank, you would realize the return of the investment via mortgage checks or long-term equity share on the property.

Many consider it a more lucrative investment strategy because they're used to the typical stock, bonds and mutual funds where returns may not be what they expect. With trust deed investment, you can see returns from 6% up to double digits and even up to 20% depending on the type of investment. 

The best candidate for these are investors with liquid capital, or some cases, a qualified self-directed IRA. A lot of investments will be looked at one of two ways. Do you want to be the sole person on the deed of trust, or are you willing to be a co-investor with other people? There are ways to do fractional investments or a trust account, so you can be an investor if you don't have enough money to front the entire investment. 

I've have seen people get into these investment with as little as $10,000, but in the California market, you probably need $300,000 or more to be a sole entity.

Jonathan prefers a 12 to 18 month timeframe; if his money is not sitting out there for a long time, he can get it turned over and working again. Sometimes, you can get a six to eight month turnaround, but he prefers to stick to 10 to 12 months, and pad them with a little extra expectation of a year to 18 months.

If you have questions about trust deed investing, you can find Jonathan at his website or call him at 562-493-4807
http://bellavitapi.com/