It is now a good time to take an interest in trust deed investing again to yield 9 or 10% annually with monthly cash flow. Hopefully we are at the end of the economic turmoil where we can rely on the stability of values and protective equities.

Indicators suggest that the residential market has bottomed with a possible minor bit of upward pressure.

As far as commercial real estate, most sources say that values could erode a bit further before we see stabilization. But, most agree that stability will come within the next year.

Current savings rates range from zero to 3% depending upon the instrument and the duration. In most cases at these rates you will receive an effective government guarantee of your principal. The banks will be very happy to take your money because they reinvest those dollars and make the difference commonly referred to as arbitrage.

Trust deed investments have over the long run been a good source of cash flow. However, economic downturns such as 1981-1984, 1991-1994, and the current one created extra risk and turbulence. The probability is that we are at the end or near the end of this turbulent period. The expectation should now be a long period of economic stability where we can once again rely on stabilized values, which would correspondingly reflect a more stable trust deed investment market.