A deed of trust is a legal document needed to record real estate used as collateral to secure financing. The deed is filed through county recorder's office and creates a first lien on the property. Once the loan is paid in full the lien is removed and the deed is no longer needed.
A little know secret is deed of trust makes an excellent investment product that provides consistent cash flow and high returns. Those in the know often integrate trust deed investing with retirement planning to diversify their portfolio.
Becoming a trust deed investor typically involves locating private money lenders. However, you can also be a private financier by lending money to a person who buys real estate. Novice investors are usually more comfortable working with an established private lender or mortgage broker who possesses a proven track record in deed investing practices.