New Mortgage Fund to issue public offering as fundraiser.
A newly-formed company, American Mortgage Fund, is launching a public offering to raise funds for real estate investing.
This is the first public offering of this type under specific securities regulations.
It is expected that $100 million will be raised within 12 months from initial offering from accredited investors. Accredited investors are those with at least $1 million net worth or an income of at least $200,000 for the last two years.
The fund, under the leadership of David Crantz CEO, intends to be a vehicle for investors to achieve greater than average returns by investing in qualified real estate properties across the United States. American Mortgage Fund will offer investment opportunities that are rare and unusual in the U.S. but are extremely safe due to the collateral that real estate affords.
According to Crantz, “We are on a mission to provide our investors with a higher than normal returns, projected as 11 percent annually, combined with the safety that only real estate can provide.” He continues, “We strive to provide the lowest possible loan-to-value ratio in the entire industry. We target no more than 60-65 percent, and much lower in many cases. This will ensure the safety of our investor’s funds, even in a worst-case scenario.”
While American Mortgage Fund is new, its management has over 30 years’ experience in asset-based investing. The investment model demands that properties be carefully qualified and deals structured correctly. This approach will provide consistent long-term performance, even with the vagaries of the real estate market. Geography is a part of the equation, for there are markets that are better suited to investment goals.
Specific advantages of investing with American Mortgage Fund include monthly payments and an annual return of 11percent. As mentioned, the loan-to-value ratio is critical as is the selection of borrowers, even though the lending is based on the real estate asset. Both residential and commercial properties will be considered. And, finally, an element that is never done in the industry is a detailed breakdown of the loans in which individuals are invested is provided to investors.
Crantz concludes, “We will provide the best investment opportunity of the 21st century when you consider the risk-reward ratio. This is as safe as you can get and still realize an 11 percent annual return.”BLOG COMMENTS POWERED BY DISQUS