A second Trust Deed is also called a second mortgage and maybe referred to as mezzanine financing due to its subordination to a senior debt, but in the realm of private lending usually does not have an equity stake in the asset.  A second position Trust Deed is recorded after the first position Trust Deed and is second in all considerations such as payoff and payments to investors.  This significantly increases the risk of the investment for the investor. These loans are sometimes attractive due to the higher interest rate charged to the borrower and passed on the investor.  In many cases the second Trust Deed is offered as being ‘as secured’ as the first Trust Deed by the value of the asset with an opportunity to get a higher yield.  This is where PITFALL #4 becomes very important.  A potential investor in this type of...