--- title: Trust Deed Investing 101 description: As an investor you have many options when it comes to where you put your money. Day after day whether you are driving to work or watching TV, you’ll see ad image: https://blog.ignitefunding.com/hubfs/iStock-1182967368.jpg --- [Skip to content](https://blog.ignitefunding.com/trust-deed-investing-101#main-content) [![Ignite-Funding-Logo.jpg](https://blog.ignitefunding.com/hs-fs/hubfs/Ignite-Funding-Short-Long-logo-Green.png?width=20290&height=4075&name=Ignite-Funding-Short-Long-logo-Green.png)](https://ignitefunding.com/) - ABOUT US Show submenu for ABOUT US - [The Reason People Invest with Ignite Funding](https://ignitefunding.com/invest-with-ignite-funding/) - [Why Trust Deeds](https://ignitefunding.com/why-trust-deeds/) - [Download Performance Record](https://lp.ignitefunding.com/wp-content/uploads/2025/01/Performance-Record-2011-2024-Q4-webrev.pdf) - [Funded Investments](https://ignitefunding.com/funded-investments/) - [The 8 Step Process](https://ignitefunding.com/#the-process) - [Open Your Account Today](https://ignitefunding.com/get-started-today/) - BECOME AN INVESTOR Show submenu for BECOME AN INVESTOR - [Get Started](https://ignitefunding.com/get-started-today/) - [Why Borrowers Choose Ignite Funding](https://ignitefunding.com/why-borrowers-choose-ignite-funding/) - [Need Our Help?](https://lp.ignitefunding.com/schedule-consultation/) - EDUCATION CENTER Show submenu for EDUCATION CENTER - [Podcast](https://ignitefunding.com/media/) - [Blog](https://blog.ignitefunding.com) - BECOME A BORROWER Show submenu for BECOME A BORROWER - [Need Lending?](https://ignitefunding.com/lending-criteria/) - [ADVISORS](https://ignitefunding.com/iap-investment-advisor-program/) Open main navigation Close main navigation - ABOUT US Show submenu for ABOUT US - [The Reason People Invest with Ignite Funding](https://ignitefunding.com/invest-with-ignite-funding/) - [Why Trust Deeds](https://ignitefunding.com/why-trust-deeds/) - [Download Performance Record](https://lp.ignitefunding.com/wp-content/uploads/2025/01/Performance-Record-2011-2024-Q4-webrev.pdf) - [Funded Investments](https://ignitefunding.com/funded-investments/) - [The 8 Step Process](https://ignitefunding.com/#the-process) - [Open Your Account Today](https://ignitefunding.com/get-started-today/) - BECOME AN INVESTOR Show submenu for BECOME AN INVESTOR - [Get Started](https://ignitefunding.com/get-started-today/) - [Why Borrowers Choose Ignite Funding](https://ignitefunding.com/why-borrowers-choose-ignite-funding/) - [Need Our Help?](https://lp.ignitefunding.com/schedule-consultation/) - EDUCATION CENTER Show submenu for EDUCATION CENTER - [Podcast](https://ignitefunding.com/media/) - [Blog](https://blog.ignitefunding.com) - BECOME A BORROWER Show submenu for BECOME A BORROWER - [Need Lending?](https://ignitefunding.com/lending-criteria/) - [ADVISORS](https://ignitefunding.com/iap-investment-advisor-program/) [All posts](https://blog.ignitefunding.com/all) August 1, 2024 # Trust Deed Investing 101 By  [Ignite Funding](https://blog.ignitefunding.com/author/ignite-funding)  ·  2 minute read As an investor you have many options when it comes to where you put your money. Day after day whether you are driving to work or watching TV, you’ll see advertisements telling you to invest in gold, stocks and mutual funds. And because of those ads, people have become familiar with those investments. But fewer people are familiar with trust deed investing, although it’s a form of investing that is probably as old as money itself. Simply put, trust deed investing is investing in loans that are secured/collateralized by real estate. At Ignite Funding, we specialize in Trust Deeds, primarily in the western United States. ## **Trust Deeds and Mortgages** A loan made via a Trust Deed is very similar to a mortgage. The basic difference is that there are three parties in a trust deed: the borrower, the lender and the trustee. The trustee holds the deed while the loan is being paid. Also, there is a signed promissory “note” that defines all the terms of the loan. If the borrower defaults on the loan, the trustee starts the foreclosure process. In a mortgage, the lender has to go to court to get the foreclosure going. Trust deed investing is so popular because it pays a comparably high rate of return and the investments are secured by real estate. Further, once the loan has been made, the rate of return associated with the Trust Deed doesn’t change. For example, you might invest in a Trust Deed that has a term of 12 months. You would receive payments each month for the amount of interest the borrower is being charged. ## **Real Estate as Collateral** Investing in Trust Deeds essentially means you are loaning your money against collateral. The collateral – real estate/land, in this case, – serves to protect the lender’s investment. This leads us to one of the most important considerations in trust deed investing: the true value of the collateral. It’s very important that trust deed investors consider the size of the loan they are making in relationship to the real estate collateralizing the loan. This is one reason why Ignite Funding uses a detailed underwriting process to help justify the value of the property, evaluate each piece of collateral at hand and ensure the borrower is accountable for what they are borrowing. ## **Loan terms** At Ignite Funding, we have a $10,000 minimum investment amount and loans terms range from 9 months to 18 months. Investors also have the option to choose from an assortment of loans and will work with a dedicated Business Development Rep to ensure they understand and are informed about their investment. ## **Due Diligence** Before choosing a company to invest with, you should always do research on the company. As with all investments there are inherent risks. It is highly recommended that consideration and proper due diligence be given to the company you are entrusting with managing your real estate portfolio. Ignite Funding is licensed with the Nevada Department of Business and Industry Division of Mortgage Lending as a Mortgage Broker. Additionally, Ignite Funding is an Accredited Member of the Southern Nevada Better Business Bureau and an active member of the American Association of Private Lenders. This is just some of the criteria to consider when considering an investment in trust deeds.   Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.ignitefunding.com/trust-deed-investing-101) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.ignitefunding.com/trust-deed-investing-101) [twitter icon](https://twitter.com/intent/tweet?url=https://blog.ignitefunding.com/trust-deed-investing-101) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.ignitefunding.com/trust-deed-investing-101) [envelope icon](mailto:?body=https://blog.ignitefunding.com/trust-deed-investing-101) ## Related posts [![](https://blog.ignitefunding.com/hubfs/Real%20Estate%20Cycle%20-%20istock%202150109478%20edited%201200%20628-1.png)](https://blog.ignitefunding.com/understanding-the-phases-of-the-real-estate-cycle) [Trust Deeds 101](https://blog.ignitefunding.com/topic/trust-deeds-101) ### [Understanding the Phases of the Real Estate Cycle](https://blog.ignitefunding.com/understanding-the-phases-of-the-real-estate-cycle) [![](https://blog.ignitefunding.com/hubfs/Commercial%20RE%20blog%20image%203.24.25%20300x175.png)](https://blog.ignitefunding.com/what-is-commercial-real-estate-the-comprehensive-guide) [investing](https://blog.ignitefunding.com/topic/investing) ### [What is Commercial Real Estate? The Comprehensive Guide](https://blog.ignitefunding.com/what-is-commercial-real-estate-the-comprehensive-guide) [![Scale representing deed of trust vs. mortgage ](https://blog.ignitefunding.com/hubfs/Ignite%20blog%20image%20TD%20vs%20Mortgages%201200x628.png)](https://blog.ignitefunding.com/deed-of-trust-vs.-mortgage) [real estate](https://blog.ignitefunding.com/topic/real-estate) ### [Deed of Trust vs. Mortgage: Understanding the Differences, Benefits, and When to Use Each](https://blog.ignitefunding.com/deed-of-trust-vs.-mortgage) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ignite Funding", "url" : "https://blog.ignitefunding.com/author/ignite-funding" }, "dateModified" : "2024-08-01T16:22:29.482Z", "datePublished" : "2016-10-04T18:02:09.000Z", "headline" : "Trust Deed Investing 101", "image" : [ "https://blog.ignitefunding.com/hubfs/iStock-1182967368.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.ignitefunding.com/trust-deed-investing-101", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.ignitefunding.com/hubfs/Ignite-Funding-Short-Long-logo-Green.png" }, "name" : "Ignite Funding" } } ``` ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : [ "Ignite Funding" ], "url" : "https://blog.ignitefunding.com/author/ignite-funding" }, "datePublished" : "2016-10-04T18:02:09+0000", "description" : "As an investor you have many options when it comes to where you put your money. 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