Trust deeds are not as liquid as stocks. Your capital is usually tied up for the duration of the loan term. Different Contexts: Scotland vs. USA
Experienced investors typically do not fund loans higher than 70% LTV . This ensures there is enough "cushion" or equity (at least 30%) in the property to cover the investment if a sale is required after foreclosure. buy trust deeds
In many regions, a trust deed allows for non-judicial foreclosure , which is significantly faster and cheaper than court-involved processes. Key Risks and Considerations Trust deeds are not as liquid as stocks