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3 Questions to Ask When Investing in a Mortgage Fund

3 Questions to Ask When Investing in a Mortgage Fund

 

When it comes to investing in mortgage funds, every investor has a different strategy and goal in mind. There are many factors in play when deciding where to invest your hard-earned money. Some have a higher appetite for risk in hope of seeing higher returns, while some prefer safer investments even if that could mean less return on investment. No matter what your strategy is, it is vital to know what 3 Questions to Ask When Investing in a Mortgage Fund to ensure that your investment is as secure as possible. 

  1. How well is the fund audited?- The fund in which you choose to invest should be audited by an outside third party that is regulated by the state. For example, the ZINC Income Fund is audited by CohnReznick, the largest CPA firm in the country, and we do a trust account review every 90 days that is regulated by the state. When placing your confidence and your money in a fund, it is important to ensure there is comprehensive due diligence being done.
  2. What is the experience of the operator?- Chances are, if the operator of the fund has little experience, your investment will not be as secure as you may think. Putting this into perspective, if you need surgery, you would most likely want to go to an experienced surgeon and not one who has only ever done 2 surgeries. When it comes to your hard-earned money, the concept is the same, extensive knowledge of the operator is vital! 
  3. Is there a physical presence?- Does the mortgage fund that you are planning to invest in have a physical location? It is extremely important to visit the location of the fund and make sure it appears to be well-organized with multiple departments that oversee the fund. For example, the ZINC Income fund is headquartered in Fresno, CA, and meets with all potential investors before they choose whether to invest. Building a personal connection is a huge priority. Chances are, you have worked extremely hard for your money and the ZINC Income Fund recommends that investors consider the due diligence and discipline that they had when earning their money and use that same mindset when it comes time to invest. 

No matter what the strategy of the investor, there is one common goal when investing in a mortgage fund, securing your investment. Asking the questions listed above will help ensure that your money is safe and the fund is transparent throughout each stage of your investment. If you have any questions that you would like to ask about investing in a REIT (real estate investment trust) click here and our investor relations officer will be in touch to assist you with any inquiries you may have about the ZINC Income Fund!

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