Investment Types
Real Estate
- REIT’s – typically provide income and liquidity after small redemption fee.
- Development Projects – offer higher projected returns, but no liquidity in 3-5 year horizon.
- Some offer characteristics of both.
Private Equity
- Like owning a non-public stock.
- Liquidity often restricted or subject to redemption fees
- Can provide both income and balloon payment at end of term.
- Total returns typically target mid -teens
Private Debt/Credit
- Mortgage Investment Corps (MIC)
- Investor money used to fund pools of mortgages.
- Returns currently in 8-11% range.
- More secure as backed by mortgages
- Consumer Debt
- Funds used for non-mortgage consumer debt
- Currently provides investors 17% fixed return, paid monthly with 30-day liquidity
- Not secured by mortgages but carefully underwritten. Less than 5% default.