Does anyone know of a way that individual investors, e.g. those with, say, less than $1 million in investment capital, can invest in the cash flows of single family or commercial mortgages? For example, a pool of borrowers borrows for homes with a weighted average interest rate of 5.1%. Is there a way individuals can invest in this pool? Of course, institutional investors can easily find these investments. But can smaller players?
Yeah, go out and lend your neighbor some money. If you have some money left over go to the next house and lend that neighbor some money. Repeat as necessary.
Isn’t Danteshek still looking for loans on prosper?
JohnThainsLimoDriver Wrote: ------------------------------------------------------- > Isn’t Danteshek still looking for loans on > prosper? What actually happened to this guy? I keep seeing references.
I think Obama has been trying to come up with a similar plan, isn’t it?
JohnThainsLimoDriver Wrote: ------------------------------------------------------- > Isn’t Danteshek still looking for loans on > prosper? Haha I don’t even know the guy, but good one.
JohnThain, I haven’t said anything before but do you ruin every thread? Ever since you started posting here, this forum’s decline has gone from steady to precipitous. If you don’t have anything constructive to say, could you please STFU?
I don’t know if it would achieve the desired effect but perhaps you could try Real Estate Investment Trusts (REITs) that trade on stock exchanges? That way you can focus on particular sector: family housing, commercial properties, etc.
kkent Wrote: ------------------------------------------------------- > JohnThain, I haven’t said anything before but do > you ruin every thread? Ever since you started > posting here, this forum’s decline has gone from > steady to precipitous. If you don’t have anything > constructive to say, could you please STFU? While I can’t argue about JTLD being a frequent thread-jacker, he’s got a point in this instance. For an individual player with less than 1M, making individual loans is one of the few ways to get direct exposure to residential mortgage. The only problem I can see are transaction costs. REITs are a lower cost option, but will probably expose you to commercial, primarily. There is a website (not prosper) that specializes in person-to-person mortgages, but I can’t seem to remember what its called.
I’ve seen a couple commercial mortgage pools available for individual investors where investors can come in with a min of $10K-50K and get units in the mortgage pool. The manager underwrites and makes the mortgage investments and returns the income less fees. When I looked at them the fees were high because the investments are small and there isn’t any opportunity for capital appreciation- they are income investments only. There is however a chance of capital loss if any of the underlying loans go bad.