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Hard Money

Protecting Your Money When The Market Drops With A Mortgage Fund

By now it’s no secret that I’m a big fan of mortgage funds, but I want to make sure that I’m crystal clear on why. You’ve heard me say that it’s better to own paper than to be a landlord because frankly, who wants to get those calls from disgruntled tenants?   Might as well be the bank and just earn a nice percentage on your money without the hassle, right? Of course, but that’s not what I want to discuss today.

Consider what happens to your stock market investments when the market drops. All of the sudden a massive amount of your money evaporates. If you owned a piece of property and the Real Estate market drops…well we all saw what could happen there. What if you owned a portion of a fund that held many properties in strong coastal areas that were managed by a very experienced team? You would have a diversified portfolio backed by something real and tangible…actual property.

OK, what happens if the Real Estate Market drops?

Mortgage Fund 6


  • The properties in coastal areas are the last to go down and the first to go up.


  • There is a lot of equity built into each property in the fund, so there’s room for the value to drop and borrowers have skin in the game.


  • If a borrower on a property stops paying, there are many other properties in the fund that are in good standing so your money is protected and the monthly income only goes down a small percentage.


  • If a borrower defaults, it’s up to the fund to go through the foreclosure process and sell off the property.


As you can see it’s not a bad deal at all and the real value of a mortgage fun is that you and your investment is protected from a downturn in the market.


Leading the industry through his innovative approach, Dino Katsiametis has over 17 years of extensive experience within mortgage, banking and real estate industries. His passion for the collective financial and investment services sector combined with his distinct insight, has catapulted Money Matters with Dino onto the forefront of financial news.

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