The advantages of private mortgages far outweigh paper investments. There are numerous reasons private mortgages are superior to other investment vehicles and here are a few of the many reasons:-
- Less fluctuation than stock market
- Compound several times a year
- Greater control over when and how much you invest
- Easier to understand than other investing vehicles
- More predictable than the stock market
- Real estate is a tangible asset, unlike paper investing, unlike paper investing, private mortgages are backed by a tangible asset that will always have value
If a borrower defaults on a private mortgage, the property is sold in a quick sale. JEI works with borrowers who purchase properties at least 65% of the market value. That way, should it be necessary, JEI can be sure to liquidate the property quickly and get a return into their investors’ hands. The investor can then roll that money into another private mortgage quickly and start earning returns again.
An Accredited investor is:
"A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person make" (1)
(1) Source: www.sec.gov/answers/accred.htm
We have provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.