8. What Else Should The Investor Look For When Evaluating The Security Property For A Trust Deed Investment?

Check to see if the loan is secured by 1st Trust Deed or a 2nd Trust Deed. The benefit of investing in a junior loan (2nd T.D.) … higher yields and control of the real estate in the event of a default. However, before investing in a 2nd Trust Deed loan, the investor must make sure it has the capital to service the 1st Trust Deed in the event of a default and foreclosure sale. Once the property is acquired,  payments on the 1st as well as real estate taxes must be kept current until the property is sold

Single family homes, apartment houses, commercial, industrial property and certain parcels of land are the ideal properties for collateral. Avoid collateral such as amusement parks, private clubs and recreational areas. Make sure that you get a copy of the appraisal report and that your appraiser is properly licensed

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