Investing in a Hard Money Mortgage Pool by Leonard Rosen
However, I do not know a safer investment strategy coupled with a higher rate of return than real estate.Unlike the equity markets, real estate has proven to be a safe haven for many investors. Over the past 40 years, real estate has risen in value in literally every major market in the United States.
There is no other investment that affords the liquidity along with preservation of capital than real estate. The question is how to minimize exposure with gaining the highest level of return on your investment.
I believe investing in a hard money mortgage pool is a viable option for many investors . Hard money mortgage pools are equity based loans based on the true value of real property.
True value is the actual value of the property given a 90 day period of time for liquidation purposes. An investor deposits a predetermined amount of capital in a fund along with other investors and the fund loans hard money on several properties in their portfolio. Rather than investing in a single property, the fund spreads the risks over many investments opportunities.
Before investing in any real estate opportunity, check the background of the fund manager and the history of the fund. Past rates of return are no guarantee of future performance. In addition, always check with a competent attorney and tax advisor before investing. Investment suitability is always a consideration.
Leonard Rosen President Pitbull mortgage School