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It is most generally acknowledged that the person’s early years such as the twenties is the best time to start investing. After all, you have all of life ahead to invest money which is why so many books on investment – most actually – are geared towards the twenties. Fewer are towards the thirties, and even fewer towards the forties and retirement. This may be partly why trust deed investing is so appealing. In today’s low-return low-interest-rate environment, trust deed investing is one of the few investment options that can help you substantially increase the amount of your monthly income. And little expense is involved. (Although risk is another matter).

What is trust deed investment?

Trust deeds are like a private real estate loan. If you’re a real estate entrepreneur (for instance) who wants to snap a fast loan to rehab a piece of property in order to sell at a profit, trust deed investors may be your best choice. They’d give you the loan in a blink’s eye far faster than the bank where it takes drawn out negotiations and filing of hefty tomes until you get that loan. (If at all). The average amount of time is 60 days. Some entrepreneurs cannot wait that long. They need to snap that deal and that’s where the trust deed investor comes in handy. He forks over your required funds within that same week, sometimes that same day at 1/3rd of the paperwork and nil of the stress. The downside is that the borrower pays a much higher rate than he might for a mortgage, typically 8% to 12% (since the investor is taking more of a risk).

How does it work?

The process is such that the buyer works through a third-party loan originator who underwrites and facilitates the loan for one year. Schedules can be restructured, but generally the borrower makes interest-only payments each month and a balloon payment of the principal once the loan reaches its maturity.

So let’s say you’re the investor and you fund 250,000 at 10% APR, you’ll either receive 12 interest payments of $2,083 each, totaling $25,000, and at the end of the year, get back your $250,000. Or, in the worst case scenario, you pocket the defaulting borrower’s land.

Other things you’ll want to know…

There’s no set minimum for investing in a single trust deed. They can be fractionalized – that is, divided into several portions – but loan originators generally prefer to deal with one investor per loan.

Finding trust deeds to invest in can be difficult. Your best bet may be to find an experienced broker or advisor with a history of success. These have likely established relationships with originators and you can work through them. If you don’t want to hunt these deals down, you might invest in a trust deed fund run by a professional manager. These funds currently pay between 8% and 11% per year and have minimum investment amounts that start around $50,000.

To acquire credibility, you may want to consider running for SEC licensing.

Pluses of investing in trust deeds

The pluses are particularly topical now with the Fed hiking its interest rates and maybe hiking them still higher. Trust deed investments protect you from the shenanigans for rising rates because they’re held to maturity and have short durations. You can also use any sort of cash to invest. You automatically have the right to foreclose on any property when the borrower has defaulted on the loan. Trust deed investing can open the door to other investment opportunities. It also offers a return on investment that comes in at higher than average; expect a typical return of 9 to 14 percent. And, if managed well, this type of investing is secure. This is because it has a guaranteed yield.

Minuses of investing in trust deeds

The obvious minus is the very likely possibility of your investment defaulting, namely the borrower not paying you back. This happens to approximately 85 % of private money lenders at some time in their lives, some more than others. Redfin, a residential real estate company that provides web-based real estate database and brokerage services, predicts that it is going to happen to many more this coming year when housing prices are going to lurch beyond restraint

Managing risk…

How can you prevent losing your money? Experts strongly advise lenders to research client’s credit history and trustworthiness. They also recommend that you research the value of the client’s property and the extraneous market environment to the point that you physically investigate the building yourself. If you’re not up to this, consider hiring an advisor with experience in this market. Before you invest, analyze a fund’s portfolio and the loan loss reserves. As with individual trust deeds, you may want to have a professional do this.

In short…

NerdWallet, one of the leading advisory websites on investments has this to say: If you exercise due caution, trust deed investments can be a great income generator at a time when investments that produce good returns are few and far between.

You may want to consider it.

Yanni Raz is a hard money lender and trust deed investing specialist from Los Angeles California. Yanni write related blogs to educate potential real estate investors. “Before investing your money in any deal, read my articles.”

Unless you are a butterfly who hasn’t been born yet or are a larva stuck in that cocoon you may have noticed a insurgence of people starting a successful home based business in the last few years. Coincidence? Why is this happening? If you look at the Internet you will find many reasons.Many people are now realizing (like many have for decades) that there is no security with a job anymore. Ask yourself this, do you know even one person who has lost their job in the last few years in this economy?So why should someone think outside the box and start a successful home based business? Well, there is a big difference having a home based business and running a successful home based business first of all, but you started one to become successful, right? Let me start by addressing the benefits of having a home based business first of all as compared to a w-2 employee.As a w-2 employee you do not get to write off your car mileage every day that you go to work but you can when you have your own business for business purposes. If you travel for your job you do not get to write that off on your taxes either, the company does. You can expense it, but not use it as a w-2 write off. If you are trying to have a successful home based business and have an office at home, you can write off your utility bills based on the square footage of the office space. You can write off supplies for your computer or printer needs, you can also write off your cell bill or internet service if you use those as a way to grow your business. Now, let me say I am not a tax advisor or CPA but when I do my taxes I have my schedule C all filled out with my operating expenses and it has consistently paid me between 8K and 10K dollars a year to have a home based business as compared to having a job and fighting that rat race as many people say on their commutes to work especially on a Monday morning. The many benefits go on and on. Ask your CPA or H and R block guy then next time you do them in a few months here upcoming.Ask your self this question why is the tax system set up differently for different people? Doesn’t it make sense to take advantage of something that can better yourself in the long run and set up a successful home based business. Most of these businesses you can start for less than one thousand dollars.Now, if you are looking at that and saying I don’t have an extra thousand dollars to invest in myself. Then look at what you are doing now and be honest with yourself. Is what you’re doing getting you ahead in life? If not then something has to change or you will always have what you got. Now think of where you work, was that company started with that little of money, odds are probably not. Not to mention all the governmental regulations that businesses have to comply with (not saying it’s all bad) but when I used to work for a governmental compliance company I would hear from a lot of small and medium sized traditional business owners that between workman’s compensation and insurance and rising rates it can be tough to compete with the competition due to the large amount of overhead and to bring in just enough to break even before they even begun to profit. Ask anyone who owns a brick and mortar business and has these issues.So overall it will pay you in the long run to start a successful home based business which is why so many people are getting involved in the network marketing field. In my opinion there is no better model to get all the benefits and advantages for owning your own life again and leave the cell when you’re in cubicle prison. (Sorry I used to be in several of those with my former jobs so I had to say it…big laugh). And one final thought with having a successful home based business. Robert Kiyosaki advises that you start something on your own so that you won’t be part of the middle class who will continue to be wiped out into poverty in this world over the next few decades.

Find your dream house property in the Colorado Springs real estate area of the Black Forest. This part of the Colorado Springs real estate area is located in northern El Paso County. The Black Forest is a rural area that is situated on approximately 200,000 acres of land. The area is heavily wooded with mostly Ponderosa Pine trees. Black Forest is a mix of older homes and newer homes. The northwestern Black Forest real estate area includes: High Forest Ranch established 2001-2004, Walden established 1965-2002, Hawk Ridge established 1994-2000, Wissler Ranch established 1996-1999, and Elk Creek Ranch established 1980-1993.

Home Prices & Descriptions

Many of the homes for sale in the Black Forest real estate area are 5 acre house properties. There are mostly ranch style homes and 2 story homes. Some of the homes are custom homes and reflect “country style” living and some of the homes resemble houses that blend into “city living”. Many of these Colorado Springs real estate subdivisions include features such as: multiple decks and fireplaces, slate floors, barns and garages, granite counters, and theater rooms.

The minimum sales price for homes in 2008 in the Black Forest is $375,000. The minimum size Black Forest home for sale is 3,408 finished square feet. The minimum home for sale is 3 bedrooms, 3 baths, and a 3 car garage. The average sales price in 2008 is $650,000 and is 4,527 finished square feet. The average size home for sale is 4 bedrooms, 4 baths, and a 4 car garage. The maximum sales price in this Colorado Springs real estate area is $925,000 and is 5,646 finished square feet. The maximum size home for sale is 5 bedrooms, 5 baths, and a 5 car garage.

One of the newer communities in the Black Forest real estate area is the prestigious High Forest Ranch. The Ranch has rustic custom homes for sale. There are close to 20 different custom builders to choose from. Some of the homes in this Colorado Springs real estate area are situated on 2.5-5 acres of land. Residents in the High Forest Ranch area have community lodge at their disposal for those special occasions. The custom homes for sale in this Colorado Springs real estate area range from $499,900-$3.5 million. Amenities for some of the homes include: multiple fireplaces, slab granite counter tops, vaulted ceilings, great rooms, family room, master retreats, theater rooms, billiard rooms, wine rooms, travertine flooring, outdoor covered decks, and wet bars. Many of the Colorado Springs homes for sale in this area have extensive timber and stone features.

The Walden real estate area has beautiful custom ranch style homes with lots between approximately 1/2 acre and 1 acre in size. Many of the homes have stucco exteriors and resemble more of a “city look.” Some of these Colorado Springs real estate neighborhoods include: custom cabinets, molding and trim, granite slab kitchen counter tops, hardwood floors, multiple fireplaces, 5 piece master baths, vaulted great room, stucco exteriors, perennial gardens, offices, recreation rooms, game area, formal dining rooms, wood decks with hot tub, walk-out rancher, and gourmet kitchens. Homes for sale in this Colorado Springs real estate area range from the high $200,000s to just under $600,000.

In the privacy of the pines is the prominent Hawk Ridge real estate area. Hawk Ridge has homes for sale on approximately 2.5 acres or less. Many of the homes are custom homes with features like: hardwood floors, walls of windows, multiple fireplaces, French doors, granite kitchen islands, custom cabinets, hand crafted banisters, ponds, walk-out dining area, and large decks. The homes for sale in the Hawk Ridge community range from the approximately the mid $500,000s to 1.3 million dollars. This part of the Colorado Springs real estate area borders the Black Forest area.

The Wissler Ranch homes for sale range from the mid $400,000s to $900,000. Some of the homes have luxurious living and family rooms, huge open kitchens, spacious master suites, home theaters, wine cellars, exercise rooms, recreation rooms, and 5 piece master baths. Many of the homes are on approximate 3 acre lots. Some of the homes are gorgeous cottage style houses with old world charm. The homes for sale in this Colorado Springs real estate area range from the mid $450,000s to the mid $800,000s. The Wissler Ranch community also borders the Black Forest area.

There are some homes for sale in the Elk Creek community in the low $200,000s. The homes are located in meadows and in the woods. Most of the homes are on five acre lots and are zoned for horses. Some of the homes have beautiful mountain views and some are located in the meadows and have natural streams running through the properties. Many of the homes include barns, storage sheds, fences for horses, RV parking. There are custom homes in this community. Find your perfect dream horse property in this Colorado Springs real estate area. Amenities include: vaulted/beamed ceilings, large kitchens, fireplaces, skylights, multiple decks, oversized garages, and covered stalls.

Schools.

The schools of attendance are: Lewis Palmer Elementary School, Ray E. Kilmer Elementary School, Lewis Palmer Middle School, Creekside Middle School, and Lewis Palmer High School. The schools are part of the Lewis Palmer School District 38 boundary area.

Neighboring Communities.

The Southwestern portion of the Black Forest is located to the south and contains the Black Forest Regional Park. The Black Forest extends to the east. The Kings Deer, Canterbury, Fox Run, and Cherry Creek Crossing subdivisions are situated to the west.

Commuting.

The northwestern Colorado Springs real estate area of Black Forest is located near Highway 83 and County Line Road. It is convenient for commuting to Colorado Springs and Denver. This part of the Air Force Academy real estate area is located approximately 30 minutes or 22 miles from the USAFA main gate and is a possible Colorado Springs military relocation choice.

Recreation.

The High Forest Ranch community has miles of hiking trails and open space. It is close to the Tri-lakes real estate area. Three lakes and multiple golf courses are located in the Tri-lakes area. Shopping is close by in Monument, Castle Rock, Denver and Colorado Springs real estate locations.