Many people consider investing money in stocks or trust deeds but are unsure of how to go about it. Previously investing in stocks, bonds and mutual funds seemed a safe gamble for most to make with their hard earned money since it leads to increased net worth over time which gives them more future security and a safe retirement plan

With the economic downturn that the United States and the entire world are currently experiencing, many individuals find themselves in a place where their retirement is now in question. The previous ability to work for a company and then retire has seemingly burst under the housing and real estate collapse, with many people finding themselves without their safety net of employment security or even without their homes.

Because of this, most average individuals believe that the idea of investing is too far out of reach, a distant dream that is now a sign of times past where rewards were given to those that worked the hardest and the longest. However, in spite of this disheartening current climate, there are still ways for people to invest their money, ensuring that they will have some money set aside for emergencies and even retirement.

Trust deed investing is the ability to invest in loans that have been secured by real estate, usually short term spanning up to eight years. The housing bubble caused many homes and buildings to be foreclosed on, forcing many disreputable findings in regards to the banking and loan market to be discovered and laid out for all to see. Because of this, nearly 20% of the mortgages that sit within a bank’s balance sheet are now delinquent; in fact, many banks have tightened their lending practices in the aftermath, forcing many of those who want to loan unable to do so due to their less than stellar credit rating.

With banks not lending, the market now has a supply and demand imbalance, which in turn makes trust deed investing all the more attractive. Trust deed investing can offer a high return with very low risk, however perspective investors should realize that in any type of investment, there is always a risk. Anyone can use a trust deed investment, however individuals who have at least $50,000 to start with will more likely benefit from this type of investment. Usually, private individuals, corporations, LLC companies, nonprofits, and others can invest in a trust deed. There are even ways to use IRAs or SEP accounts to use as part of the investment.

In many cases, individuals can use brokers to be the go between in not only finding, but securing a location for an investment. A broker is someone who handles all of the paperwork in regards to that of the investment; an individual lends money to the borrower through the broker’s services. Brokers work directly with the borrower and handles all of the back office services, such as collecting payments from borrowers, mailing out notices and statements, and the end of the year IRS taxes.

With a broker by your side there will be less risks since the broker knows the market better than the average investor. So if you are one of the lucky ones to still have a little something left over in your savings, after the downfall of the economy, consider working with a broker to make a trust deed investment.