HOW DO REAL ESTATE NOTES AND MORTGAGES COMPARE TO OTHER INVESTMENTS IN MY PORTFOLIO?
Many investment advisors recommend a mixture of investments to increase the overall investment returns, while reducing risk. Stocks and mutual funds can offer a high return but also have high risk. Conversely, fixed investments like bonds and CD’s have lower returns but much lower risk. An alternative is mortgage investments, which have higher returns than many other fixed rate investments and less risk than stocks, since all loans are secured by real estate. These investments are an excellent way to further diversify your portfolio, to increase your overall return and further reduce risk.
