Your starting point will depend on how much knowledge you have, what kind of resources you have, and who you know. There are a variety of different ways to actually invest in Trust Deeds and each way is going to vary significantly with regard to the amount of time, effort, and capital that will be required to make the investment. Here are at least a few different ways that you can invest in Trust Deeds:

 

If you choose to go it alone, the quality of your investments is on your shoulders. You will likely need to consider making Trust Deed Investing and lending your full time job, and in many cases you may need to obtain a license to do so. You’ll also need enough capital to fund an entire loan with.

 

There are a number of companies that do nothing other than source and sell loans directly to Trust Deed Investors. In this case you’ll still need the capital to fund an entire loan, but you won’t have to go into business in order to find loans to fund. You will typically need to have the knowledge and ability to service the loan, however. Otherwise, you can hire a third party loan servicer to take care of this for you. MMG Capital brokers loans to investors on a limited basis and typically services the loan for those investors.

 

A mortgage pools used to be a common method of Trust Deed Investing but has largely gone out of style as of late for a number of reasons. In a mortgage pool, investors participate in a large capital fund that is formed for the purpose of making loans. The investors return is based on the performance of all of the loans in the fund as opposed to any one particular loan. There are also limitations to who can invest in a mortgage pool that are defined by net worth and income levels.

 

If you want to invest in a single loan but don’t have the capital to fund the entire loan yourself then you have the option of investing with friends, family, or other like-minded individuals. Within fractionalized Trust Deeds there are additional forms that the investment can take, but this can be a great way to participate in larger investments with lesser amounts of capital.