For investors seeking higher yield, second mortgage positions offer greater returns in exchange for more risk. Here is how they work.
Behind the first mortgage
A second mortgage ranks behind the first, so it is repaid only after the first mortgage is settled. This added risk is reflected in the return.
Higher target returns
Second mortgage positions target approximately 9–11% annual interest, making them attractive to investors comfortable with more risk for more yield.
Who they suit
Second mortgages suit investors looking to maximize yield on real-estate-secured loans. Returns are not guaranteed; review each deal and seek advice.
Ready to talk?
Interested in real-estate-secured returns? See our Invest With Us page or contact us to discuss current opportunities.
This article is for general information only and is not financial, legal, or investment advice. Please consult a qualified, licensed professional before making any decision.