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All About Deeds of Trust and Trust Deed Investing

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All About Deeds of Trust You’ve just made the decision to purchase a home! First things first. Find the perfect property for you, make an offer that will be accepted by the seller, and finally secure financing. When it comes to financing buyers will use either a mortgage or a deed of trust . These are the names of the document’s buyers will use to secure financing. Both works similarly, but not the same. Certain states require buyers to use only one and other states, such as Arizona allow either. The biggest distinction between the two is the number of parties involved. A deed of trust has three parties and a mortgage has only two. The three parties in a deed of trust are the borrower, the lender, and the trustee. The borrower is also referred to as the trustor and is the person purchasing the property and in need of a loan. The lender is either a legal entity or an individual who provides the loan. The trustee is a neutral third-party who holds the deed to the house and is ultimatel...
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Inveseting in Foreclosure Properties–How To Do It

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How To Invest in Foreclosures You’ve seen the TV programs where attractive young couples buy foreclosed homes , renovate them, and flip them for huge profits. They make it look easy. While of course, the process of purchasing, renovating, and flipping foreclosed properties is a bit more complicated than it appears on TV, it is doable and you can make a profit from it. Here’s what you need to know before spending one dime on a foreclosed property. Drive-By the Property When the sales list comes out, peruse the list, and identify potential properties for purchase. You’ll want to visit them prior to the sale. Of course, you will want to get an idea of the condition of the property, but you also want to inspect the neighborhood. First, research the property online. You will be able to determine how old it is, how many bedrooms and bathrooms it has, how many owners it had, how long the previous owner had it, what the property taxes are, and in many cases, whether permits were pulled to p...
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Trust Deed Investing Arizona

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A lesser-known option for investing in is trust deeds. They have high returns, a low entry point, and more security than many investments. Investing in trust deeds gives you an opportunity to invest with lower risk and a higher chance of great returns, often in double digits. When people invest in real estate, they are generally experts in the industry. However, with trust deed investing, you do not need experience because this is not a hands-on investment. Exceptionally High Returns The stock market is completely unpredictable. You can have the best portfolio but there are zero guarantees it will perform well. However, when it comes to investing in trust deeds , you are guaranteed a specific return over a specified period of time. Generally, these returns are much higher than other investments produce. Low Entry Point You do not need a huge amount of money in trust deed investing . Typically, you can begin with as little as $20,000. When you invest in your own property it costs much m...
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What is a Deed of Trust in ArizonaTrust

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So, you have decided to buy a home in the great state of Arizona. Expect to sign your John Hancock to several documents. The is one you may not be too familiar with. In this article, you will learn all about what a deed of trust is used for. Buying a home is one of the biggest decisions you will ever make. Information will be thrown at you right and left, and there are numerous documents you will need to sign. In many states, homeowners will use a mortgage for their property loan, but in other states, deeds of trust are more common. In Arizona, you will most likely use a deed of trust. Although mortgages and deeds of trust serve the same purpose, there are significant differences that all prospective buyers should be aware of before buying their home. The deed of trust and mortgage are both executed and recorded in the county the property is located. They are both the same as in the property is used as collateral for the loan. Also, any future buyer will need to pay off the loan whet...
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Differences Between Mortgages and a Deed of Trust

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A mortgage and a deed of trust are very similar. They are both loan agreements where a borrower uses the title to a piece of property as collateral for a loan. In a loan transaction, the lender requires the borrower to sign either the mortgage or the deed of trust. Both of these documents set up the terms of the loan and a very similar. Both give the lender the right to sell the property through foreclosure in case the borrower defaults on the loan. However, there are two significant differences between the two: the involved parties and the foreclosure process. Typically, mortgages and deeds of trusts have the same clauses. Both require the borrower has homeowner’s insurance, that the property is kept in good condition, and no hazardous substances are allowed on the property.  Both mortgages and deeds of trust require the lender to give the borrower a breach letter and a specific amount of time to become current on the loan before beginning the foreclosure process. Lenders in cer...
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Understanding a Deed of Trust

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Using a deed of trust to purchase real estate or borrow money using your property as collateral, you must have a legitimate trustee as part of the transaction. What exactly is a deed of trust ? A deed of trust is a legal document used in a real estate transaction when the borrower, or purchaser, borrows money for the purchase of property and uses that property as collateral. In most states, a mortgage is what is used to borrow money for the use of buying real estate. However, some states like California and Arizona do use deeds of trust. If you are not sure if your state uses mortgages, trusts of deeds, or both, contact any real estate broker in your area. A deed of trust always involves three parties: the borrower, the lender, and the trustee. The borrower is called the trustor and the lender is the beneficiary. The trustee can be an individual or a business. Their role is to hold the title to the property until the trustor has paid the loan in full. Once the loan has been paid off, ...
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