Private mortgages - good investment?
As long as the owner has enough equity to cover drops in housing market, risk should be minimal, as default would mean foreclosure, and the first and second lenders would be paid out.
Anyone know more info?
Disclosure - I am about to be holding a short term private mortgage for a friend on a house I just sold, but downpayment was 50% on it, and I am in first position (only lender). It got me thinking about getting a higher return on my money in future (I gave him a near bank loan rate). I realize there is no free lunch, higher reward must mean higher risk.