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How does a deed-secured investment minimize investor risk in real-estate?
A deed-secured investment minimizes risk with property collateral. In case of default, the investor can recover through foreclosure, providing tangible security compared to unsecured investments like stocks and bonds.
Is there a defined need for real-estate deed investments in the marketplace?
Real estate deed investing addresses the demand for short-term bridge loans, filling a gap left by traditional banks and capitalizing on the opportunity created since the 2008 financial crisis for investors to fund short-term, real estate-secured loans.
How do the returns compare to those of a traditional fixed-income investment?
The return on investment outperforms a typical savings account or government bond, and it scales with the risk involved. Diversifying your portfolio not only helps manage risks but also enhances the potential for appealing returns.
What measures are in place to mitigate risks associated with deed investments?
To manage risks effectively with deed investments, we delve into due diligence, analyze risks carefully, and offer a variety of investment options. Our strict underwriting and measures to insulate from market shifts make sure your investment stays on solid ground.
Are there specific terms associated with this investment vehicle?
The terms for deed investments, typically 1-5 years, are much shorter than those 15–30 year traditional mortgages. This condensed timeframe provides investors with the opportunity for faster returns compared to other options.
What are the tax implications for investors in deed-backed opportunities?
Tax treatment varies based on your unique situation and may involve capital gains tax upon selling. To navigate the specifics, ensure compliance with tax laws, your investment agreement, and your financial strategy, consult with your tax professional.
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