The Future of Private Money Investment
Although the traditional fractional investment model will continue, the trend to mortgage funds is accelerating. Reasons:
1. Increasing property values continue to push prices – and loan amounts – higher. More investors are necessary for each transaction, a costly and time-consuming process to conduct for each loan. This time lag translates into slower funding for borrowers – and more time on the sidelines for investors.
2. The regulatory preference will likely continue. The structure, accountability and standards required for mortgage funds provides a better fit for government oversight.
3. The combination of diversification, liquidity and professional management enabled by mortgage funds will increasingly give them more of the appearance of banks, further adding to investor appeal.
Read more about this topic: Private Money Investing
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