Would you rather earn 3 percent in a bank or 7 percent in a trust deed investment? Would you rather put your money in the volatile stock market or invest in a trust deed that allows someone else to buy a house? If the answer to both of these questions is the latter, you should consider investing in a trust deed.  

A trust deed is essentially what a mortgage is called in California. An investor such as yourself would become a private investor who would put up some or all of the money for a loan for a buyer. The investor can invest with others in a joint venture, or on their own. In this way, you are privately financing a house purchase.

In order to find the perfect borrower, you need to find a mortgage broker. The job of a mortgage broker is to find a buyer and an investor and get them together. You will not meet the buyer and they will not meet you. You will deal only with the broker, who will take a fee for their services.

Your private financing will cost the buyer more money than if he used a mortgage lender, but he will not care. Chances are that your buyer will not qualify for a mortgage loan in a conventional manner. This is because he will have either bad credit or no credit or even not enough money to put down on the loan.   

This is the reason why the borrower will be willing to pay more than the standard percentage for their loan. They are still saving money by not renting. The buyer will also pay fees for the mortgage broker as well as to you. You will not make a lot of money on fees, but will make substantial income on the long term investment regarding the interest rate.   

If you have been thinking about investing in the California real estate market but have been afraid because you are not sure what you are doing, you should think about investing in a deed of trust. This way you can get the security of a solid investment and the high yield return for your money.   

In addition to that, you are actually helping someone get a house who would not be able to get one if it was not for the secondary market. Take a look at some of the mortgage brokers who are out there, get to know them, trust them and build up a good working relationship with them. This will enable you to get started investing in deeds of trust. You may decide that this is the perfect vehicle investment for your or you may just add it to your investment portfolio. Either way, it is a viable and safe investment.   

Investing in a deed of trust is the best way to get the best of both worlds - a secure investment with a high yield. Who can ask for anything more?