The title sounds like it’s a little bit of a sales pitch doesn’t it? Well in a way, it is. Anyone who’s been a landlord before, knows there’s nothing relaxing about making money in Real Estate. Tenants can be a hassle, contractors are expensive and you feel like the market can drop at any moment leaving you in an over-leveraged position.
What if I were to tell you that you could own Real Estate that makes a consistent and strong return and yet:
Well, let me tell you about mortgage funds. A mortgage fund is a fund backed by multiple pieces of Real Estate with high percentages of equity, yielding a strong rate of return on your investment. The fund collects the mortgage payments, handles the expenses and distributes the profits among the investors in the fund based on the level of participation. The number of properties held by the fund mitigates the risk of a single borrower defaulting. The high percentage of equity in each property mitigates the risk of a dip in the market, as does a fund manager who is experienced in choosing the right properties. A good example of this, are funds that will only invest in Coastal Properties because they’re the last to drop in value and the first to go up.
The next thing I would expect to hear is, “Well that sounds really good, but I’d still like to know where the market going?”A completely legitimate question, so let’s think about it. The banks are much more regulated than they were before the 2008 crash and certainly less likely to risk lending to a marginally qualified borrower; therefore, today’s borrower is much more stable and can more easily afford the loan they’re requesting. Also, while rates are projected to tick up, they will do so slowly and in a manner that will very likely preserve a slow and steady growth in values supported as well by a healthy economy and rising average household incomes.
So fear not would be investors, it’s easier and way more relaxing than you think to make money with Real Estate.
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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