Thursday
Jun212012

Three secrets of successful Trust Deed Investing.

Every good result is based on proven process. Secure investing directly into First Trust Deeds results from the skills of 1. Capital and 2. Servicing. 

Peter Drucker was a guru for business and economics. A key saying of his was "...management is getting things done right!" 

After 21 years in this private loan business, it strikes me that there are 3 keys to investing success (and know by "success" I don't mean you won't have problems, foreclosures and so forth, reality dictates challenges occur) . 

 

  1. Capital. This is obvious, since it takes money to make money. No McKinley investor is broke (That I know of anyway!). 
  2. Notes. This is what McKinley does for you, it finds and screens as well as helps you close private loans (i.e. notes) for direct investing. Unless you take time to market, take calls, screen deals, manage escrow closings and much more, you "hire" McKinley to find investment quality deals for you.
  3. Management. Also called servicing  or collections, this to me is increasing the "core competency" of an investor. 

 

I was very fortunate early in this business. Having started from my college dorm room at the University of Alaska- Fairbanks in November 1989, the business grew rapidly the next decade. Money and notes were abundant and one mistake I made initially was being "too soft" as a manager of my portfolio of notes.

Today the 3rd competency of note management is pretty simple: It's firm but fair. As my portfolio grows personally and with the business, being more aggressive is more successful than being to lenient to borrowers who are no longer able to make payments. 

Wish I could have met Peter Drucker, but one thing I can do now is follow his dictum... " To do things right" and as it relates to managing a note portfolio, that means a daily system that most effectively keeps the cash flowing and returns high!

NOTE: Some of you know about and invest with an affiliate company of McKinley, if you do not have the skills to manage your notes or do not have the time or expertise, AFC III's secured notes are one good solution to enjoy direct investing passively (yields are lower at 7-8.25% compared to direct investing 9-13% but you have no direct management.) Contact either Charles or Myself (Toby) for more information about AFC III.

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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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    trustdeed - Blog - Three secrets of successful Trust Deed Investing.
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