Alternative Investments (4): Private Mortgages

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Private Mortgages

If you like the idea of investing in real estate without buying and maintaining properties, then think about private mortgages. As the investor, you lend money to a homeowner who needs a mortgage and you collect interest payments as profit. If the owner stops making payments, you can take possession of the property.
One platform that makes trading mortgage notes simple is Paperstac. When you research mortgage notes, look for owners that are current on payments and have a first lien position. These tend to be less risky. Because having the first lien position entitles you to claim the first portion of the sale proceeds if you have to repossess the property.

Sven Franssen