I Am Caine
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Joined: Dec 17, 2022 12:11:32 GMT -5
Posts: 22
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Post by I Am Caine on Jan 14, 2023 23:09:46 GMT -5
I am considering investing in distressed single family-home mortgage notes? The company goal is high monthly income of 8% annualized return distributed as dividends monthly.
I have no experience with this investment strategy, but an 8% return on my investment would allow me to continue to live in Sandy Eggo as rents continue to skyrocket.
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Opti
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Joined: Dec 18, 2010 10:45:38 GMT -5
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Location: New Jersey
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Post by Opti on Jan 15, 2023 8:44:58 GMT -5
How do they get a return of 8%? Mortgage rates are below that plus if they are distressed mortgages, there should be a higher rate of default as well.
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I Am Caine
New Member
Joined: Dec 17, 2022 12:11:32 GMT -5
Posts: 22
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Post by I Am Caine on Jan 16, 2023 3:32:51 GMT -5
How do they get a return of 8%? Mortgage rates are below that plus if they are distressed mortgages, there should be a higher rate of default as well. As they explained it, they purchase the notes from lenders at a 40-50% discount, and renegotiate loan payments to a level borrowers can afford. It sounds like what collection agencies do when someone defaults. |
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