Monday, July 14, 2008

Trust Deed Investments and Junior Financing

Banks usually will not allow the seller of a piece of commercial real estate to carry back a second trust deed behind their new first mortgage. They want the buyer to put down a full 25% to 30%.

Sometimes good buyers don't have the full 25% to put down. This is a good opportunity for a private trust deed investor to make a first trust deed. A private money first trust deed loan will be more expensive than a loan from the bank, but a private lender will often allow the seller to carry back a second mortgage.

The bank's loss is the private investor's gain.

If you are an accredited California investor and you would like more information about investing in trust deeds, please click here.

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