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Liquidity in Trust Deed Investments

Liquidity in trust deeds investment

In the world of investments, the term “liquidity” often raises questions. Many investors are hesitant to explore options that tie up their capital for extended periods. It’s a legitimate concern, especially when considering traditional real estate investments that can lock in your funds for years.

But what if I told you there’s a way to enjoy the stability and returns of real estate investments without sacrificing liquidity? Enter trust deed investments – a financial avenue that offers a unique blend of stability and accessibility.

The Common Misconception about Trust Deed Investments

One common misconception surrounding trust deed investments is the perceived lack of liquidity. Some investors assume that once they commit their funds, they are locked in for an indefinite period. However, this notion couldn’t be further from the truth.

The Reality of Trust Deed Investments

Let’s break down the reality of liquidity in trust deed investments. At LBC Capital, we specialize in trust deed investments, and we understand the importance of flexibility in managing your investments.

1. Access to Regular Income Streams

One of the most significant advantages of trust deed investments is the regular income they generate. As an investor, you receive a share of the monthly interest payments from borrowers. This provides a consistent cash flow that can complement your financial needs. Unlike some traditional investments that may not offer regular income, trust deed investments keep the money flowing.

2. Shorter Investment Terms

Trust deed investments often have shorter terms compared to traditional real estate investments. While the latter may tie up your funds for years, trust deed investments typically have terms ranging from a few months to a few years. This means you have more control and quicker access to your invested capital.

3. Opportunities for Diversification

Diversification is a crucial aspect of managing investments and mitigating risks. With trust deed investments, you have the opportunity to diversify your portfolio. By investing in different trust deeds across various properties and borrowers, you spread the risk. This flexibility allows you to adjust your investment strategy according to your financial goals.

4. Sale of Trust Deed Investments

Perhaps the most significant aspect of liquidity in trust deed investments is the ability to sell your investments. Unlike traditional real estate, where selling a property can be a lengthy and cumbersome process, trust deed investments can be transferred relatively quickly. This means you can access your funds when needed by selling your trust deed investment to another investor.

5. Passive Investment with Active Liquidity

Trust deed investments offer the best of both worlds: passive investment with active liquidity. You can sit back and enjoy the stable returns while knowing that if the need arises, you can easily access your funds. This flexibility sets trust deed investments apart from many other investment options.

Conclusion: Debunking the Myth

In conclusion, the notion that trust deed investments lack liquidity is a myth. They provide a level of flexibility and accessibility that traditional real estate investments often cannot match. At LBC Capital, we are dedicated to offering investors the opportunity to enjoy the stability of real estate investments without compromising on liquidity. We welcome you to watch a video with our Fund Manager Boris Dorfman, who explains other aspects of liquidity here.

So, if you’ve been concerned about locking up your capital in investments for extended periods, it’s time to reconsider. Trust deed investments can provide you with the income, diversification, and liquidity you desire. Don’t let myths hold you back from exploring this lucrative investment avenue.

Discover the true potential of trust deed investments with LBC Capital, where your financial goals are our top priority. Invest wisely, enjoy stable returns, and have the flexibility you need. Book your free consultation with us.

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