Deed Of Trust Information

Pitfalls for Investors to Watch For (II)

deed of trust


Filed under: Deed Of Trust,Deed Of Trust Forms,Trust Deed Buyers,Trust Deed Investments by Frank Mori |
  • Take the time to learn the difference between personal and real property. You don’t want to confuse personal property for real property when you are establishing your opinion in regards to value. Real property is that which is considered to be “affixed to the earth”. However, don’t mistake all property that is fastened to the ground to be real property; some of these items are personal.
  • You should make it a point to know how the borrower is planning to pay the private money loan. Just because short term loans are primarily funded based on real estate equity, you should discover what the borrower has already pre-approved for their take out loan.
  • When it comes to Loan to Value Ratio that concerns homes occupied by owners, you should never lend out a LTV that exceeds 60%, even if the home appears to be the most ideal of owner occupied homes. Likewise, as far as non-owner occupied homes are concerned, the LTV should not exceed 50%
  • You should never rely on future promises regarding improvements unless the proper draws for the upcoming work that is to be completed is officially set up.
  • Make sure you do not want or require any final, additional documentation before you close. Such documentation can include, but is not limited to following:
    • Certificate of occupancy.
    • Well report.
    • Proof of purchase cost.
    • Notice of completion.
    • Closing statements.
    • Roof reports.
    • Toxic reports.
    • Sign off of final permit card, Etc.

Take the time to research everything you can about trust deed investments. Speak to qualified professionals, and don’t be afraid to ask questions, or rethink your decisions before making an investment. By following these guidelines, you will lower the risk you take when making a trust deed investment, and will be less likely to experience a pitfall.

Related posts:

  1. Pitfalls for Investors to Watch For
  2. Deed Of Trust Vs. Stock Market
  3. Coppercrest Funding & Trust Deed Investing
  4. Trust Deeds | Construction Loans
  5. Trust Deed | Title Insurance Policy
Comments (0)

No Comments »

RSS feed for comments on this post. | TrackBack URI
You can also bookmark this on del.icio.us or check the cosmos

Leave a comment

You must be logged in to post a comment.

« Pitfalls for Investors to Watch For    Arizona Trust Deed Investing Today »