“Gee, George, every time you write to me, you scare me out of investing in first trust deeds. Are you nuts?” Folks, I honestly believe that first trust deeds offer one of the best risk-return tradeoffs in the investing world. Even an 8% first trust deed is yielding at least 7% more than you earn in bank C.D.’s. The poor retired folks in Europe now have the pay the bank to hold their deposits. Yikes.
When you invest in stocks, the dividend income is paltry. If you are retired, you may have to sell some of your stock and pay income taxes, just to have income upon which to live. In contrast, when you invest in a successful first trust deed, you get interest income upon which you can live without eating your seed corn.
I genuinely think that first trust deed are the cat’s meow. Just don’t be foolish and reach for high yields.
Be careful here, folks. No guarantees are implied. Blackburne’s Law is not backed by any rigid statistical testing. It’s actually just a hypothesis, based on my forty years of making hard money loans. These weasel attorney words being said, Blackburne’s Law is a piece of advice that you would be very wise to always remember.