The Fixed Income Fund from Tactical Wealth is different than any other risk averse investment.

Instead of acting like a typical fixed income security, such as a bond, the Fixed Income fund doesn’t lend your money or capital in exchange for interest from local or federal governments or corporations.

Instead, we take a more real approach. Real estate, that is.

How does it work?

We’ve covered that in depth before, but as a quick refresher:

  • The Fixed Income Fund generates reliable, stable monthly income by purchasing mortgage and trust deed loans, each with a maximum market loan-to-value ratio of 70 percent.
  • The fund targets real estate loans and holdings that are backed by single family residences in markets that are not only historically stable, but also have favorable foreclosure proceedings.
  • Unlike bonds and annuities, the value of your Fixed Income Fund return never fluctuates, even as interest rates do.
  • The Fixed Income fund holds many loans and pools those investments, helping to minimize the risk of single loan defaults and by diversifying holdings by property type, location, maturities, and borrower type.

Interested? Great.

Sound complicated? It isn’t.

All you have to do to understand the Fixed Income Fund is understand how mortgages work. It’s that simple.

How Mortgages Work

So, what is a mortgage?

By definition, a mortgage is:

  • “A legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.”

That sounds confusing, right? Well, in simpler terms, a mortgage is offering your property (in most cases, your home) to a creditor (such as a bank) as security for the payment of a debt. It’s a loan for your home, which you then pay off, plus interest, over a set amount of years in exchange for the ownership of that home.

Mortgage interest rates typically come in two forms: Fixed or adjustable.

A fixed rate mortgage is where, much like the Fixed Income Fund, the interest rate (and therefore the borrower’s monthly payment) remains unchanged over the lifespan of the loan.

Most fixed rate loans have a lifespan of around 30 years, though there are instances where shorter lengths like 20, 15, or 10-year loans are available.

With an adjustable rate mortgage, the interest rate will fluctuate throughout the loan’s life, resulting in differing monthly payments throughout the years.

This can be an attractive option if you’re looking to get out of your home after a few years. However, buyers should be wary that intentions don’t always lend themselves to realistic development, and choosing an adjustable rate mortgage may leave you stuck with a house you don’t want and payments that are too high.

This could lead to foreclosure, which means the lender (bank) will retake possession of your home in the event of the borrower (homeowner) missing their payments.

Applying for a mortgage is a sometimes tedious process which requires a look at your employment history, credit history, and other factors that may positively (or negatively) impact their determination as to whether you are stable and reliable enough to pay back your loan.

Mortgages often require a down payment of (traditionally) 20 percent of the total loan, though it can sometimes be as low as three to five percent, as well as closing costs (three to six percent of the total loan), and a handful of other fees.

After insurance payments are finalized and the house is officially closed upon, the regular mortgage payments can begin.

Choosing the proper interest rate, making monthly payments on-time can go a long ways towards avoiding foreclosure on a mortgage – as well as help provide a steady, reliable income for those involved with the Fixed Income Fund.

Get Involved With Fixed Income

One of the greatest aspects of the Fixed Income Fund is its simplicity.

From time to time, we’ve seen investors become overwhelmed by the complexity of their securities.

Often times, people simply do not understand their other investments, which leads them to be hesitant and fearful to ask their broker important questions that not only impact their money, but their future and livelihood.

Not at Tactical Wealth, and not with the Fixed Income Fund.

Here, you’ll get the attention you deserve and experience peace of mind.

Our fund was designed specifically with the safety of the investor’s’ income and principal in mind, and our founder and manager, Mr. Dan Venegoni, is a licensed CPA and investment professional with over 20 years of experience.

You can rest assured that your money is being invested properly and securely with the Fixed Income Fund, as the health of the business is directly tied to Mr. Venegoni’s own investments.

His unparallelled attention to details when it comes to the real estate market and the fund are what makes this investment so unique and secure, from minimizing the time it takes between a loan borrower missing a payment and foreclosing on the collateral property, to his overall conservative approach to investing.

For example: In instances like we mentioned earlier, where a homeowner has missed their payments and is facing foreclosure on a loan that we may have purchased, the Fixed Income Fund mitigates the risk of the investor losing money through its stabilized contingency reserves (in the event of a loan default) and loan-to-value ratios (70 percent).

With an investment in the Fixed Income Fund, you can rest assured that your money will be protected in the event of a foreclosure, as we target specific markets with the most potential buyers and act quickly and efficiently to sell the home to recover our capital.

With the Fixed Income Fund, you won’t be snowballed by complex rates or terms.

If you understand loans and mortgages, you’ll be comfortable with the fund and feel comfortable asking important questions and becoming involved with an investment you understand.

Get involved. Get peace of mind.

Get the Fixed Income Fund today. Contact Tactical Wealth for more information.