Ask Terry Questions investment in commercial mortgage bridge loans?

investment in commercial mortgage bridge loans?

By Terry Savage on October 26, 2017 | Chicken Money

I'm 67 still working self-employed. Slowing down though. What do you think on this investment vehicle: Commercial mortgage bridge They promise 6% interest on a minimum of 50 k investment tied up for 1 year, principal returned after 1 year or rolled over, your choice. Have you heard of them. Should I be leery.

Terry Says

I have strongly expressed my disapproval of this investment.  They are far more potentially risky than you are getting paid with a 6 percent yield.  And when rates rise, and there is another credit crunch, I know I will be writing about people who are trapped in these products because the borrowers can't get "end user" or "takeout" financing from the banks!  This is risky stuff -- NOT an alternative to bank CDs or Money Market funds.

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