Great Alternative to Stocks
Our Trust Deeds Are Yielding 10% to 12% – Paid Monthly
Have you ever thought about investing in real estate, but weren’t sure where to start? You might consider trust deed investing. Not everyone has the time, energy, or knowhow to become an investment property owner. Between the high capital costs, difficult tenants, and real estate taxes, owning real estate can be a hassle. What if there was a way to get involved in real estate, with 1/10th of the capital required? What if you could earn 10% on your investment, and not in capital appreciation, but cold, hard cash in your bank account every month? That is where trust deed investing comes in.
What is trust deed investing? In a nut shell, trust deed investing is when you, and other investors, pool your resources together and make a loan on property, secured by real estate. This loan would have a certain rate of return (for us, it is between 10-12% usually) and your investment is secured by the real estate. Every month, the borrower makes their payment, and you get your share of that payment. In the event a borrower defaults, you foreclose on the property and lease it out or sell it.
Why should you consider trust deed investing? Well, if you are like me and weren’t born yesterday, you have probably have witnessed multiple financial downtowns in your life time. Remember what happened to everyone’s 401k when the market took a hit in 2008? Or again in 2020? You and every other American were probably in the same boat. The capital appreciation your stocks gained over the years was gone in an instant. Poof. Now how many you still had to pay your mortgage? That’s right, no matter what the macro situation, borrowers still have to make their loan payments every month. Come rain, sleet or snow, our borrowers have to make their monthly payments, and therefore, when they make their payments, you make your return. I don’t know about you, but if my 401k was in the tank, I would feel a lot better with a few trust deed investments depositing cash into my bank account every month.
At Blackburne & Sons, we sell tiny pieces of first trust deeds to wealthy private investors, and we have been doing this for forty-four years. Here are some highlights.
- These investments are first mortgages on small commercial properties, and some non-owner occupied residential properties, nationwide.
- Commercial property borrowers are usually stronger than most home loan borrowers. For example, many of them own successful businesses.
- We sell small pieces of these loans – typically in $10,000 to $25,000 increments – to accredited private investors nationwide.
- These investments are called fractionalized trust deeds, and we have been selling them for 44 years (since 1980).
- You must be an accredited investor; i.e., you must have a net worth, exclusive of your home, auto’s, and household goods, of at least $1 million.
- Each loan is vested in your own name, as to your percentage of ownership. For example, if you invest $20,000 in a $200,000 loan, your interest might be vested as, “Robert and Mary Smith, husband and wife, as to an undivided 10% interest.”
- Our minimum investment is only $10,000 – and we allow you to “test drive” your first investment with us with just $5,000.
- Our typical deal yields 10% to 12% interest, and assuming that your borrower makes his payments, you get paid your interest monthly.
- In the event of a foreclosure, Blackburne & Sons handles everything and automatically becomes the property manager.
- We successfully led our investors through the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. To our pleasant surprise, most of our loans continued to make most of their payments on time. Be careful here. Past performance is no guarantee of future results.
- Trust deeds are a great alternative to stocks. Stocks cannot keep going up forever. In the words of Herb Stein, “If something cannot go on forever, it will stop.” Suppose the stock market crashes, and Fortune 500 companies disappear. If your trust deed borrower keeps making his payments, “Frankly, my dear, you don’t give a hoot.”
Please start by signing up to receive your free book, “Invest in 11% First Trust Deeds.” This book is not some fluffy sales brochure. It’s an easy-to-read manual that will help you to choose the best trust deeds.
Important Notice:
Investing in first trust deeds involves substantial risk. A large and prolonged decline in real estate values is possible. Be sure to carefully study the Risk Factors section of the Private Placement Memorandum before investing. This is not an offer to sell securities. Such an offer is only made when accompanied by a Private Placement Memorandum.
