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How You Could Earn 10-12% Annually With a Real Estate Deed of Trust

Staff Writer

January 31, 2024

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For most of us, a home loan is the biggest loan we’ll ever take out. And we’d all be thrilled to be done with it before retirement.

But hold on a minute. Another type of real estate loan could actually fund your retirement and generate plenty of passive income right now.

A deed of trust is an alternative to a mortgage in some states. And you can invest in them to diversify and make money alongside your retirement account, stocks and bonds.

And with the help of a company called Ignite Funding, you don’t need to have any experience in real estate investing to make money. Their real estate investment options tend to earn 10% to 12% in returns annually.

Ignite Funding makes investing in commercial real estate as simple and accessible as investing in stocks or a retirement account. Plus, there tends to be less risk involved with investing in real estate than investing in stocks — especially when you invest in real estate secured by promissory notes known as trust deeds.

Before diving into why Ignite Funding is one of the best ways for everyday people to make money from real estate, let’s break down what a deed of trust involves and why they’re used in real estate transactions.

Here’s what you need to know about trust deeds.

How Does a Deed of Trust Work?

A deed of trust, or a trust deed, uses the conventional lender and borrower format we’re all familiar with, but the property’s legal title is given to a neutral third party, a “trustee,” until the borrower completely pays off the lender.

The trustee holds the legal title for the property. If the borrower defaults, instead of a judicial foreclosure, the trustee can foreclose on the property without having to go through the judicial system.

As an investor in a deed of trust, your investment is safer than other real estate investments because the trustee doesn’t need to get the courts involved to foreclose on a property is a borrower doesn’t hold up their end of the bargain.

So, a deed of trust allows investors to quickly reclaim and remarket properties if there’s ever an issue with a borrower, rather than waiting for the judicial system to sort things out.

Deed of Trust vs. Mortgage

When using mortgages for a real estate transaction, banks usually act as both the mortgage lender and trustee. The bank lends money for the borrower to purchase a property and holds the legal title to that property until the borrower pays back the loan.

From an investment standpoint, another benefit of deeds of trust is the length of the loans. While trust deed terms can be as long as any mortgage, a company like Ignite Funding can offer them for much shorter durations than banks are usually willing to extend.

Ignite Funding’s real estate deed of trust durations usually range from just a few months to a few years in length, giving investors the potential to earn more interest in a shorter period of time.

They’ve built a track record of generating returns of between 10% to 12% of their trust deed.

Imagine your earnings with just a few thousand dollars stashed in a deed of trust for a couple of years. Even the best savings account would earn you less than half that, and you probably already know how much of a rollercoaster ride investing in stocks can be.

Investing in Ignite Funding’s Trust Deeds

The down payment alone for a piece of commercial property is usually way too high for most of us to consider real estate investing on our own. And those of us who can afford to drop six figures on a down payment might not want to put so many eggs in one basket.

With Ignite Funding, you can invest in real estate like stocks. Just as you can buy shares of a company, you can invest in a portion of a commercial property instead of buying and owning the whole thing.

You don’t have to contract developers or property managers to maintain the properties you buy into. You don’t even have to do research to find properties with high potential for strong returns.

Ignite Funding handles all of that for you. All you have to do is browse their available investments and choose which properties to invest in.

What sets Ignite Funding apart from other real estate investment companies is their use of trust deeds as a vehicle to protect your money and accelerate the time it takes to earn returns. Developers get access to short-term loans, while investors like you get a predictable return on your investment. It’s a win for all parties involved.

Ignite Funding’s trust deeds are usually shorter-term. So, if you’re closing in on retirement or looking to hit a short-term savings goal, you can get strong returns without a long-term holding period.

Why Do Borrowers Trust in Ignite Funding?

No matter how generous they sound, we all know that banks are businesses. When it comes to lending money for commercial properties, banks want to maximize the money they make from loans. And they tend to prefer long-term loans to short-term loans.

Ignite Funding helps fill the void for borrowers who want short-term loans to develop and construct properties quickly. They offer borrowers loans ranging from just 9 to 18 months. Loan amounts range from $1 million to over $10 million.

And they don’t just loan money to anyone. Ignite Funding thoroughly qualifies borrowers to make sure they have a solid plan in place to repay loans, plus interest, in a short turnaround.

The trust deed vehicle is also an additional safeguard that protects you, the investor, and Ignite Funding from any bumps in the road the borrower may face.

Accelerate Your Money with Real Estate

The stock market is known for being volatile, so diversifying with other investments is the best way to offset that risk. Real estate investing is one of the best ways to do that, since it comes with collateral in the real property you’re investing in.

Ready to diversify your savings and investments with real estate? It’s easy to invest in real estate with Ignite Funding and earn predictable returns secured by a deed of trust.

Frequently Asked Questions

If you need to learn more about how a deed of trust works in real estate transactions, here are a few more commonly asked questions from around the web.

How does a trust deed compare to a mortgage?

Trust deeds are an alternative to a mortgage in some states. While mortgages only involve two parties, the lender and borrower, a deed of trust involves three. A deed of trust grants the property’s legal title to a third party, the trustee, until the loan reaches maturity. The trustee is a neutral third party that could be a title company, a bank, or an escrow company.

Is a deed of trust the same as a title?

A deed of trust is a type of legal title used in real estate transactions. The borrower gives the lender a promissory note to repay the loan, while a neutral third party is entrusted with the property title until the borrower repays the lender in full.

How long does a deed of trust last?

Term lengths for trust deeds can vary from months to years, but in terms of Ignite Funding, the max term is 18 months. Both the borrower and seller agree to terms before a deed of trust becomes binding. The deed of trust will last until the borrower has repaid everything owed to the lender.

Can you sell a house with a deed of trust?

Yes. Like a mortgage, you can sell a home or commercial property with a deed of trust.

Does a deed of trust show ownership?

No, the property title shows ownership. A deed of trust shows that a loan has been secured.

If you would like to receive additional information related to investments, text the word “Penny” to 702-919-4281 or download Ignite Funding’s free “8 Steps to Trust Deed Investing” whitepaper.