Trust deed investing is simply investing in loans secured by real estate. Most trust deed investments are relatively short term loans (maturity under five years, with many loans two years or less) made to screened borrowers with strong equity in California real estate. Banks are reluctant to lend to this market. However, these loans present a wonderful opportunity for investors seeking strong high yields and cash flow, secured by strong equity in a property and clear title.
Trust deed investments that are secured by real property interests are subject to risk of loss.