Trust Deed Investing VS Another Typical Investment

Stocks

Private Lending

Stocks are 100% equity investment only. This means you are part owner in the company.  It is possible that a company may go bankrupt or out of business. Equity holders are the last to get paid, so if there are any issues with liquidity of a company, equity investors can realistically get nothing. Private Lending is a 100% debt investment. Mortgage debt is much safer than equity, as there is collateral securing the loan.  If the company should go bankrupt, debt holders are paid back before any equity holders are paid a dime!
No fixed yield and very low, if any, dividends. Investor receives a fixed rate of return each month and a significant dividend once or twice a year, depending on the length of the loan. All profits are paid out in dividends to the investors.
Stock values can move up and down rather quickly. If an investor is not interested in monthly  income and wants an asset that will increase in value, this may be a better option because the value may increase. Conversely, stocks can also go down depending on the demand for the stock, which is something over which the investor has no control. This is a secured fixed income investment with a dividend bonus. An investor will not be able to re-sell this for a higher price than they paid. All profits are passed along to the investors so the investment company’s value should not fluctuate.
No insurance. All properties are fully insured.
Fees charged to investor to both buy and sell. No fees charged to investor.Leaves-66

 


 

PreviousNext