Investors seeking alternatives to the stock and bond markets will find refuge in the world of private money loan investing. If you are careful and diligent, you can earn solid returns while minimizing risk.
Junior Liens You can earn higher returns by originating and/or buying seconds or other more junior liens, but the risks and complications of servicing escalate substantially. Junior lien investments are not for the faint of heart. You may be called upon to reinstate the 1st, payoff the 1st, or…if the market drops or a bankruptcy is filed, your likelihood of being wiped out entirely is much greater than a first lien position.