netnet Posted May 10, 2016 Share Posted May 10, 2016 So, i put some of my low risk money in private lending. These really private placements organized by (mostly) former bankers who are filling the openings of a market formerly covered by community banks. The returns range from 7 to 10%. I would be curious to see if anyone else does this. Here is an article in this weeks Barrons by an advisor who puts about 15% of his clients money in these private mortgage pools. (This is not part of the new fintech peer to peer platforms.) http://www.barrons.com/articles/a-top-advisors-zeal-for-alternative-investments-1462593848 Link to comment Share on other sites More sharing options...
glorysk87 Posted May 11, 2016 Share Posted May 11, 2016 Haven't heard of it. Are you buying funds? Or direct lending? Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 11, 2016 Share Posted May 11, 2016 Private Lenders Remodel the Mortgage Market Investors dip into savings to offer high-price home loans to borrowers rejected by banks http://www.wsj.com/articles/private-lenders-remodel-the-mortgage-market-1462984898 Link to comment Share on other sites More sharing options...
netnet Posted May 11, 2016 Author Share Posted May 11, 2016 Haven't heard of it. Are you buying funds? Or direct lending? It's really buying a fund, but on some you can actually attach the money directly to the property in question, so you actually are directly collateralized by a specific property, or you can be in a general pools. Link to comment Share on other sites More sharing options...
netnet Posted May 12, 2016 Author Share Posted May 12, 2016 Private Lenders Remodel the Mortgage Market Investors dip into savings to offer high-price home loans to borrowers rejected by banks http://www.wsj.com/articles/private-lenders-remodel-the-mortgage-market-1462984898 Chalk the appearance the article up to one of those amusing chance coincidences. It is interesting in that there are some who make the loans themselves (I have no desire to underwrite or service) and some who buy the loans, (agency problems). Neither of those is very attractive to me. Plus, although the article does not mention it I am assuming that these loans are for longer durations. So what I have done is get firms where their capital is on the line as well and the loan duration is short, with a much better loan to value ratio than mentioned in the article, i.e. <55% Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 12, 2016 Share Posted May 12, 2016 Would love to see some updates on your private investments somewhere down the line. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now