We focus purely on MFRs, and it has done us very well. Both for the income and for the huge tax-writeoffs.
Most of the folks do say that nothing beats a mutual fund. And even though many will state that you must have a minimum balance to get into a mutual fund. I have written letters for sailors before that mutual funds did allow them to get started, investing as low as $50/month. [waiving their minimum balance requirements] It just takes a letter say8ing that you work hard and you really want to invest in their fund, but that you just dont have that much cash on hand, and that you want to invest so badly that you would be willing to make an automatic direct deposit from your salary in the amount of $50 per month into their fund.
My father buys mortgage notes from a broker and he does very well with that investment vehicle. Mortgage-notes often get traded like baseball cards. Each broker seems to have their own system for rating a mortgage-note and based on that rating system, they will be willing to trade a given note. He buys mortgages, and he never pays more than half of the note's face value. A note with a remaining principle of $100,000 for example has a face value of $100,000, even though if the holder were to continue making payments for the life of the note, they will eventually have paid as much as 3 times that amount. So he buys the note for $50,000 and notifies the note's holder to begin sending the monthly payments to him. His rate of return varys. But you can see the rough numbers of what they would generally be like. In doing this since 1977, he has had 2 mortgages go into default, he has had to travel to whichever state, file paperwork to transfer the propertys into his name, evict the residents, make repairs and place the property back onto the market. But even after all that, when the property sales, he makes a huge windfall. And he does very little of the work himself, he contacts the local trade union halls and has them do all the work.
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Galen
I dont know either. Sorry :-)
We focus purely on MFRs, and it has done us very well. Both for the income and for the huge tax-writeoffs.
Most of the folks do say that nothing beats a mutual fund. And even though many will state that you must have a minimum balance to get into a mutual fund. I have written letters for sailors before that mutual funds did allow them to get started, investing as low as $50/month. [waiving their minimum balance requirements] It just takes a letter say8ing that you work hard and you really want to invest in their fund, but that you just dont have that much cash on hand, and that you want to invest so badly that you would be willing to make an automatic direct deposit from your salary in the amount of $50 per month into their fund.
My father buys mortgage notes from a broker and he does very well with that investment vehicle. Mortgage-notes often get traded like baseball cards. Each broker seems to have their own system for rating a mortgage-note and based on that rating system, they will be willing to trade a given note. He buys mortgages, and he never pays more than half of the note's face value. A note with a remaining principle of $100,000 for example has a face value of $100,000, even though if the holder were to continue making payments for the life of the note, they will eventually have paid as much as 3 times that amount. So he buys the note for $50,000 and notifies the note's holder to begin sending the monthly payments to him. His rate of return varys. But you can see the rough numbers of what they would generally be like. In doing this since 1977, he has had 2 mortgages go into default, he has had to travel to whichever state, file paperwork to transfer the propertys into his name, evict the residents, make repairs and place the property back onto the market. But even after all that, when the property sales, he makes a huge windfall. And he does very little of the work himself, he contacts the local trade union halls and has them do all the work.
Good luck anbd tell us what you decide.
:-)
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Hills Bro
Vanguard's RIET fund is an excellent choice ..very low expenses with above average returns.
http://flagship5.vanguard.com/VGApp/hnw/Fu...&FundIntExt=INT
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