In order to invest in trust deeds, it is important to understand how they work. The agreements involve three different roles. An investor lends money which is backed by collateral, usually in the form of property including land and, or buildings. The investor may buy an existing agreement or create a new one.
A borrower needs the cash. He or she may require the money to continue work on a project while awaiting a conventional loan from a financial institution. The borrower may not qualify for a traditional bank loan or may need money faster than the banks approval process allows. In other cases, these agreements may be the standard form of real estate lending in their jurisdiction.
These agreements are the most common method of financing real estate transactions in many states. In others, a mortgage is more common.
A trustee is the third person involved in the transaction who acts as a middle man. The trustee holds the title to the property on the lenders behalf until the loan is paid in full. If the borrower defaults on the loan, the property will belong to the lender. The trustee may also act as a negotiator if loan payments go into arrears.
The agreement essentially functions as a lien on the property. It is a legal document which must be registered with the courts and must include a legal description of the property being used as security, the amount of the loan, the principles involved, the maturity date of the loan and a description of penalties for late payments or failure to make payments.
Interest rates on the loans are set at market value, which is usually higher than the standard bank rate and generate more income. The investor receives regular interest payments and the loan principle is repaid when the loan matures.
The agreements are flexible so they can be traded or sold. Trust deeds are also a good form of monthly income. There may be more than one trust deed on a property. The first takes precedence over any others in settling claims.
Trust deeds are one of the safest forms of investment, but like all investments they are not totally risk free. Investors should carefully inspect the property being used as collateral to ensure the value is equal to or greater than the amount of the money being borrowed.
It is also important to know the laws and regulations governing foreclosures in the state in which the deed trust was drawn. There is a large discrepancy in the time allowed between the default of the loan and the ability to begin foreclosure proceeds. The time may range from two weeks up to six months. When a borrower declares bankruptcy the process may be delayed even further.
Taking the time to invest in trust deeds may be a profitable long term investment. It simply requires some planning and research.
There are hundreds of different residential loans in the financial markets. As a first-time home buyer, you might get so confused about the complicated financial terminologies. To choose a right type of loan is crucial for your property purchases. Let me introduce you to the most common residential loan types.
OPM.Other people’ money (OPM) refers to the money that does not belong to you, but you borrow from other people. The sources of OPM could include bank loans, government loans, hard-money lenders, small-business loans, and so on. Borrowing money is always risky, but it allows you to double or triple your investment returns. You can also gain controlled of a property with far less equity you have put in.
Interest-only mortgages. With an interest-only mortgage, you pay only interest for a certain number of years, usually 3-5 years, and pay a lump-sum payment at the end of loan life. It sounds like a good deal for people who short of money and purchase houses in a property appreciation environment. However, the interest-only loans are adjustable-rate mortgages (ARMs). Instead of paying a fixed amount of interest with a fixed interest rate, interest-only loan usually has a premium over the market index. If the index rises, the interest rate charged on your loan will rise too.
ARMs.Adjustable-rate mortgage loans (ARMs) are flotation loans. ARMs are tied to an index rises or falls based on government loans. Several indexes are commonly used; they are usually Treasury index, the London interbank Offered Rate (LIBOR), the Cost of Funds Index ( COFI), the Prime Rate, various T-Bills, and the Fed Funds Rate. For example, if the interest rate of your loan tracks the LIBOR, when the LIBOR rises to 5%, you will pay 5% plus the premium you have agreed on the loan contract. ARMs are often easier to qualify for, but the cost of your debt is therefore, higher than the traditional mortgage.
Hybrids.A hybrid loan is a combination of an ARM and a fixed-rate loan. With a hybrid loan, you can pay fixed-rate interest for a certain number of years, after that, you will have to pay floatation interest, i.e. the interest rate is tied to the reference index.
Government secured loans.Even though the government is not usually in the business of lending, government provides the guarantees for the purchases of owner-occupied properties. The FHA ( Federal Housing Authority) is the program that federal government used to promote the American Dream of homeownership. FHA programs are primarily available for the first-time home buyers. However, because FHA programs are government-secured financing, if you can use these programs to purchase the residential properties, you can be more flexible on capital in your other real estate investments.
The bottom line.
There are advantages and drawbacks in different types of loans. There is no one type of loan better than the other, estimate your own financial situation and the goal of your property purchases, find out the best loan type before you rush to a real estate investment.
Internet marketing services mainly use lucrative web content with the help of your website and promote your brand using associated digital marketing tools to expand your revenue stream. Marketing strategies using blogs, forums, newsletters and press releases are a powerful tool to attract more traffic into your website.
Here are a few basic things that you should consider when choosing a digital marketing agency:
1. Images speak louder than words at this field: you need to consider that in this field words will not be worth their weight. It is valid fact that about 65 percentile of the total population who browse through the internet are visual learners, so it is easily understandable that the largest chunk of your digital target will learn more about your products and brand through images and visually attractive posts rather than through lucrative words. Also the statistics suggest that posts with pictures get 53 percent more likes than other posts.
2. Email is still an important marketing tool: most reputable and big internet marketing services still rely on email as well. It has been witnessed that the 20 topmost organizations in the world of digital marketing still use email extensively to promote their brand and products. Did you notice the hundreds of emails you received last year during the holidays from Amazon.com. This method of sending personalized promotional mails is still the most effective way to increase your transaction rates and broaden your revenue stream.
3. Do not ignore the importance of mobile phones: according to the predictions of market experts, mobile will be the future of all marketing campaigns in the near future. But as of now a good digital marketing agency should give marketing for smart phone users’ top priority.
4. All your questions should be answered efficiently with data: yes, data will give you all the answers to your questions like, who is your market, and how many audiences are you reaching through your marketing strategy. All these answers that you want, will be offered by, data-based digital marketing which also operates in real time. Also data based marketing will help you to decide where you should allocate your resources and will also help you develop a more efficient marketing strategy.
5. Your online marketing strategy is required to be fitted and seamless: a good digital marketing plan according to the market experts should fit your brand like a comfortable undergarment. By that we mean that a good plan will fit you seamlessly. Also it will create a logo identity of your brand so that the style, tone and advancement of your marketing strategy is recognizable throughout the social media and smart phone devices and any other platform of online marketing as synonymous to your brand.
6. Now this covers all the target groups you have who avidly follow social media groups, blogs and posts. But what of the other audiences who are still unaware of your existence? How will you reach to them through digital marketing? To reach such audiences you need an agency that also offers Search Engine Optimized services.
Digital Marketing has an effective impact on the users and as well as company owners. Every business, whether it is small or big requires a strong digital marketing implementation to reach out the customers and to tell the story of their brand in a creative, genuine, and visually-engaging way. Digital Marketing provides the wide opportunity to increase the loyalty by sharing the content and doing various methods like SEO, SEM, off line marketing etc.
- Search Engine optimization: For getting your search terms related to your business, you have to optimize the website as per Google algorithms. SEO is the best process to get numerous visitors to your website. SEO involves two methods – on page and off page. In on page you have to check for the architecture of the website, whether the code is implemented in the correct way; ALT tag has been implemented; H1 tagging has been done; Meta tags have been inserted or not as per the targeted keywords; Keywords research has to be done as per the relevance of the services you are providing. After on page SEO, you have to go with off page SEO – usually done for creating high quality relevant backlinks. SEO helps to boost the traffic on the website.
- Search Engine Marketing: Search engine marketing includes the paid marketing – Google AdWords, Facebook advertisement, Email Marketing, etc. For the search engine marketing you have to pay to a third party like Google, Facebook for running ads on the platforms. One of the most interesting new marketing techniques, retargeting (or Remarketing) tracks customers through cookie placement and continues to show them ads for products they’ve viewed in the past across a network of websites. As the technology for retargeting improves, flexible brands will stay on top of the trend to find ever more organic ways to raise brand profile.
- Social Media Marketing: SMM commonly known as word of mouth marketing. Biggest brand having their own social media marketing manager to manage all the profiles on Twitter, Facebook, Google+ etc. You should have a strong social media presence and well engaged profiles, where they are interacting with the users and providing the answers to their queries. Sales through social media platforms. New research, however, indicates that social media may finally be directly delivered the paying customers vendors have longed for are rising.
- Mobile Optimisation: It reveals that mobile access to the Internet has quadrupled over the past four years. The importance of mobile will grow in each and every aspect of business, online marketing included. People use mobile devices all day long and in various contexts, allowing marketers to target them in a longer stretch of time and during different phases of the day – at work, during rest or play. All agree that the popularity of mobile devices will only grow in 2015, driven by smartphones, tablets and wearable technology. You should have to optimise your website for the android, iPhone, or mobile users so that users easily can access the website on their mobile devices.
- Off line and content marketing: The brochures, newspapers and press release must be unique and informative. It should be posted in all local newspapers. Content marketing differs from traditional marketing tools in its resistance to overt calls-to-action or purely product- or service-based ads, and smart consumers have developed a nose for sussing out quality content from gussied-up advertising. Like a good story, good content is original, dynamic, and shareable. Truly effective content marketing uses an accessible voice to tell genuine stories that gain the trust of the consumer and build a positive reputation for the brand.