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Originally Posted by Sarah - GTS
You could invest the money in second mortgages. The interest rates are usually 13%-20% (depending on the risk of the deal) but the beautiful thing is they are secured by a building, so if the borrower defaults you have a very good chance of owning the building (you can offer to buy out the first mortgage, then sell the building), PLUS you can charge high lenders fees, i.e. $2000-$5000 per deal
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Hi, can you explain what the term "second mortgage" means? From a quick search on the web it seems to be borrowing cash against the equity in your property, but it's an additional loan and not necessarily through the same lender. Is that right?
(Just trying to figure out if it has another name in AU
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