subject: Gain More from Private Mortgage Investment [print this page] Investing in collateralized mortgage loans is more profitable and risk-free with guaranteed annual earnings of 8 percent and as much as 13 percent paid on a monthly basis. On the other hand, investment in regular stock market offerings such as stocks, bonds and annuities never yield earnings higher than 5 percent annually and are usually paid quarterly or even twice a year.
Interest earnings from shares of stock and bonds also come only when the companies involved are in such good financial position to declare a cash dividend for shareholders. Thus, such investments are highly vulnerable to market volatilities. In order to protect their money, the investors should be well-informed and on their toes, ready to buy and sell at the appropriate time.
There is no need for this kind of vigilance in private mortgage investment because interest earnings are stable and recession-proof. Private mortgage is a debt obligation secured with liquid assets that yields a regular and predictable stream of income to the investor. Since it is a mortgage lien, the investment enjoys all the security, protections and recourse that such a financial instrument enjoys.
A mortgage lien is as secure as a land title that carries legal protections and rights. Although investments in mortgage loans generate handsome interest payments the money sunk into does not appreciate under any market conditions.
There is a floating rate set for mortgages which may goes up but never down. If the prime rate rises, the mortgage investment rate also increases, but if the prime rate goes down the initial mortgage investment rate never declines.
Going into private mortgage investment may be difficult for the uninitiated. But this can be easier with the right brokerage firms specializing in mortgage investment. One such firm is thatmakes owning a mortgage for private investor as simple as can be. The company simply helps the investor purchase or fund a mortgage, and then the investors sits back and collect the monthly interest check. Private investors can invest anywhere from $50,000 to $150,000 and earn up to 13 percent annually.
With AFC handling your investment, you can diversify your portfolio to make your earnings more stable and recession-proof. The AFC finance counselors are available to help shape your decision.
To learn more about the opportunities that abound in private mortgage investments and programs, visit the AFC website where you can register and apply.
Gain More from Private Mortgage Investment
By: Charles Cailliau
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