Mortgages as Investments
For any investment portfolio, mortgage investments are a great alternative to traditional fixed income options such as bonds or Treasury Bills.
A “private” mortgage is funded by an individual investor or by a group of investors instead of a bank or trust company. Interest paid by the borrower becomes income for the investors. Private mortgage lenders have the same legal security in a mortgage as banks and other institutional lenders do. As with bank mortgages, all documentation, security registration and disbursement of funds are prepared and handled by a professional.