Buy Trust Deeds -

Because the loan is secured by real estate, the investor has a tangible asset to fall back on if payments stop.

It is important to distinguish between and Scottish Trust Deeds : buy trust deeds

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. Because the loan is secured by real estate,

For those looking to diversify a portfolio, buying trust deeds provides a way to participate in the real estate market with the security of a lienholder position. Trust deeds in Scotland - Citizens Advice For those looking to diversify a portfolio, buying

If a borrower defaults, you must be prepared to initiate foreclosure. This process can be daunting and may require you to eventually take ownership of the property to recoup your investment.

While potentially lucrative, buying trust deeds is not without risk.

In Scotland, a "trust deed" is a formal debt solution where a person agrees to pay back what they can afford over a set period (usually four years) to settle debts.