What is the true since of an investment? When you purchase a stock you have ownership in a company. Corporations issue share of a company so they are not obligated to pay back a loan.
A bond or debenture is just a loan to a corporation. A securities firm floats a bond issue and several small investors buy into a bond. The firm takes a spread and passes along a payment to the investor.
When a certificate of deposit is purchased at the bank, the bank takes the money and loans it out on a mortgage. The spread between what they pay you and what they collect is between three to five percent.
You now have the option of becoming the bank and cutting out the middle man. When you invest in a mortgage you have an investment that is secured by Real Estate. Real Estate has always appreciates over time. The property can then be leased for income or sold to pay off the underline debt.
All of the mortgages that our fund invests in are first deeds of trust in Colorado and California. Both states have seen very strong appreciation over the past seven years. With the tax cuts from the Trump administration, economic professors from Harvard have suggested that the growth will continue for another four years.
By investing in a mortgage fund you will receive interest on the loans. The fund turns about every six months and investors have the opportunity redeem the principal if needed. The rates offered are higher than other investments because the borrowers pay for the speed of the loan. Or, they have been turned down because they are self employed. More information is provided at the Tri-State Mortgage web site.