4. How is a Trust Deed Investment Created?

A Trust Deed Investment is created when a real property owner pledges his or her real estate as collateral in exchange for a loan. The property owner executes a Promissory Note and a Deed of Trust. The Deed of Trust, when recorded, attaches to the property owner's real property until the loan is repaid. If the borrower doesn't not repay the loan as promised, the lender (investor) can look to the property for the recovery of his or her lost investment.

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