How do First Trust Deeds compare to stocks as investments?

First Trust Deeds offer more predictable returns than variable stock performance, are not subject to market volatility and economic cycles, and provide tangible real estate security rather than depending on corporate performance. This makes them a more stable investment option with consistent returns.

What advantages do First Trust Deeds have over traditional real estate investments?

Unlike traditional real estate investments, First Trust Deeds require no property management responsibilities, provide fixed income rather than speculative appreciation, have lower entry costs with smaller minimum investments, and offer greater liquidity with shorter investment terms, typically 6 months to 3 years.

Why choose First Trust Deeds over bonds and CDs?

First Trust Deeds deliver significantly higher yields (8-10%) than traditional fixed-income investments like bonds and CDs. They're backed by real estate security compared to unsecured corporate promises, and offer shorter terms allowing for greater investment flexibility and adaptation to changing market conditions.

Why Choose First Trust Deeds

Understanding the advantages of First Trust Deed investments over other options

The Security Advantage of First Position

When investing in trust deeds, the position of your lien is crucial for risk assessment. A First Trust Deed holds the primary position, which provides several distinct advantages over junior liens:

Priority in Repayment

As a first lienholder, you are first in line to receive payment from any foreclosure proceeds. This priority position significantly reduces the risk of capital loss compared to subordinate liens.

Lower Loan-to-Value Ratios

First Trust Deeds typically maintain lower loan-to-value ratios (usually 65-75% of the property's value), creating a substantial equity cushion that protects your investment from market fluctuations.

Foreclosure Control

As the first lienholder, you have the legal right to initiate foreclosure proceedings if the borrower defaults. This control gives you greater power to protect your investment and maximize recovery.

Competitive Returns with Lower Risk

While second or third trust deeds may offer slightly higher interest rates, First Trust Deeds provide competitive returns (typically 8-10%) with a significantly improved risk profile.

Comparing Investment Options

When evaluating First Trust Deeds against other investment vehicles, consider these comparisons:

First Trust Deeds vs. Stocks

More predictable returns than variable stock performance
Not subject to market volatility and economic cycles
Tangible real estate security rather than corporate performance

First Trust Deeds vs. Traditional Real Estate

No property management responsibilities
Fixed income rather than speculative appreciation
Lower entry costs with smaller minimum investments
Greater liquidity with shorter investment terms

First Trust Deeds vs. Bonds & CDs

Significantly higher yields than traditional fixed-income investments
Real estate security compared to unsecured corporate promises
Shorter terms allowing for greater investment flexibility

First Trust Deed Investment Security - Real Estate Backed Investment

First Trust Deed investments offer security and stability with tangible real estate assets backing your investment.