Manage episode 285866905 series 2516289
One of the fundamental truths about investing is that the stock market is incredibly volatile and fickle, and that the people who do well over time opt for a more stable wealth building vehicle.
Many investors who were burned in the last recession have worked on building something that is more stable - and very often that’s investing in loans. The people who invest in loans often do better than the people who focus on equity investment.
In this episode, I talk to an investor whose fund is primarily focused on residential mortgage notes - a vastly untapped and overlooked investing model.
How does this model work, and why is it so different to everything else out there? Why are stocks so risky in the market we’re in? In this episode, I’m joined by CFO and founder of Aspen Funds, Bob Fraser. He talks about his investing model, and why it’s critical to choose a stable investment.
Three Things You’ll Learn In This Episode
The best way to engage with the stock market When the market drops, there is a great opportunity to take advantage of the drop in stock prices. But when we buy stocks, we have to know when to get out. We need to pick our exit point, and be happy with the gains we get, instead of waiting for the highest point of the market.
How this market drives the worst kind of inflation Easy money produces asset price inflation which we all consider positive, but it’s actually a bad thing. This is what will ultimately drive the drop in the market and the volatility that makes the stock market so risky.
Why residential mortgage notes are different Residential mortgage notes are different from investor notes because of how the debt is handled. If an investment property has negative equity on it, the investor is going to give the home back to the lenders. With a residential property, the owner is more likely to stay in the home.
Bob Fraser is the CFO and founder of Aspen Funds. He is on a mission to help investors take advantage of one of the most effective and overlooked avenues of real estate investing: residential mortgage notes. As principal of Aspen Funds, Bob has purchased more than 1,000 mortgage notes earning double-digit annual returns without the risk and volatility of traditional investing options.
Bob has 20+ years’ experience as a finance and technology executive and is a Magna Cum Laude U.C. Berkeley computer scientist and a former Entrepreneur of the Year Award winner. Bob is responsible for financial management, portfolio modeling, as well as systems and processes, designing and deploying Aspen’s scalable state-of-the-art back-end platform.
For more information, visit https://aspenfunds.us.