Q: Why should I choose a mortgage investment?
A: A fixed 8%-10% annual rate of return
● Direct collateral securing your principal against a real asset
● Less volatile than stocks
● A vehicle for diversification of your portfolio
● Monthly or quarterly cash flow
Q: How is my money utilized?
A: As an Investor you will “act like the bank” loaning your money to a developer for a contractual period of time, at the fixed interest rate. The developer uses those funds to assist with all facets of the required construction/redevelopment costs of a given project. Such as: architectural, engineering, surveying, land acquisition, marketing and other costs…
Q: What if a developer defaults and can’t repay the loan by the maturity date?
A: If a default were to occur the bare trustee/lawyer and principal broker would work with the developer to remedy the situation which could include various options such as: Refinancing the project through a large institutional financing firm, a penalty payment to Investors in exchange for the extension required to fulfill the contract and as a last resort push the property into a power of sale in order to recover the funds owed to the Investor(s). The latter being the advantage to security on title with the investment collateralized against the property. Investors hold the same rights as a “BANK”.