Trust deeds and notes are legally binding contracts secured by real estate. The document records the promise to pay funds borrowed to buy houses, buildings or vacant land and records the contracts amount of funds borrowed, interest rate, and person responsible for payment. The term discounted simply means that the seller is willing to take less money than the face amount of the note. IE: If the face amount of the real estate note is $100,000 dollars and an investor buys it for $80,000 dollars the discount = $20,000 ---- Discounted trust deeds and notes are created when the holder of the first trust deed or note finds that life situations change and wishes to have access to the cash from that real estate note. When these discounted trust deeds and notes are put up for sale, private real estate and trust deed/note investors can take advantage of these opportunities for a higher return on investment. Today several Banks, Financial Institutions, and private investors will sell their notes at a Discount.