FEATURE
The Pitfalls of Fractionalized Deeds of Trust
M
By Edward Brown, Pacific Private Money any investors like the
similar to a mutual fund or owning
situation of owning an individual
alternative lending space
the deed of trust on a specific piece
deed of trust, the investor chooses
where they can invest
of real estate, similar to owning an
which specific loan to invest in and
individual stock.
is recorded on title. It is the latter
in mortgages, otherwise know as, Trust Deed investing, whereby they
that is the focus of this article, and
become the lender on real estate.
In the case of investing in a Fund,
specifically
The two major ways to invest in
the investor invests in the Fund,
of trust where the investor shares
these mortgages is either in some
and the manager chooses which
ownership in the investment with on
kind of pooled investment [a Fund],
loans to make to borrowers. In the
or more other parties.
18
fractionalized
deeds
