I've been getting mail from an institution called Point Center Financial advertising 9-10% yields with "mortgage and trust dead investments." Normally this sort of stuff goes in to the garbarge unread but for some reason this peaked my interest.
This is an area of investing that I know nothing about so I would appreciate any comments or opinions that you have.
Some question that I would ask are: Is this sort of investment worth looking at? With current interest rates an investment that yields 10% from mortgages has to be high risk? Right? How do you evalate the risk of the mortgage pool? What about the institution offering the investment? If they go out of business do you lose your money or is there some protection like mutual funds for example where you still own the underlying investments? It look like they also do large real estate development, e.g. developing condo complexes in resort communities, and offer investments in that. Anyone have experiece with that sort of thing? It would seem to be high risk/high reward to me with the major variables being the competency and experience of the company managing the project as well as macro-economic factors?
Thanks,
MB
This is an area of investing that I know nothing about so I would appreciate any comments or opinions that you have.
Some question that I would ask are: Is this sort of investment worth looking at? With current interest rates an investment that yields 10% from mortgages has to be high risk? Right? How do you evalate the risk of the mortgage pool? What about the institution offering the investment? If they go out of business do you lose your money or is there some protection like mutual funds for example where you still own the underlying investments? It look like they also do large real estate development, e.g. developing condo complexes in resort communities, and offer investments in that. Anyone have experiece with that sort of thing? It would seem to be high risk/high reward to me with the major variables being the competency and experience of the company managing the project as well as macro-economic factors?
Thanks,
MB
