Since interest rates for trust deed investing can be very expensive (some even in the double digits!) you have to be wondering how anyone can afford to borrow at this rate. Usually, the borrowers for these types of loans are not your traditional borrowers. They are savvy in the real estate market and have a solid plan and understanding of their goals. Most properties purchased with these funds are fixer-uppers and the borrower plans to receive a high return on their investment when all is said and done. They are willing to pay high interest rates to avoid the hassle of the bank, get their money as quickly as possible, and pay for a shorter term on the loan. Likely, they already have a ballpark figure of what the property will go for in the end, so the interest rates don’t seem quite as daunting to them. They can enhance their return on investment by eliminating the bank and getting things done quickly. In many ways, the borrower can benefit from trust deed investing as much as the lender/investor, if not more.

Dennis Dahlberg
Broker/RI/CEO/MLO
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.SetabayLoan.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027