31Mar

Retired and Looking for Yield? Commercial Mortgage Notes May Be the Answer.

The general rule of thumb in managing your portfolio is the younger you are, the further out on the risk curve you can go. The rationale for this is if your portfolio doesn’t work out the way you’d hoped, you still have sufficient years ahead to recoup your market losses. The older you are, so conventional wisdom goes, the more guarded you should be, since you’re either about to or currently are drawing down on your portfolio.

But in today’s yield-starved environment, where do older, more conservative retirees find meaningful income streams that don’t lock you in for years to come?

Traditional conservative products are currently returning an average of 1.09% for one year.

So, what kind of magic does one have to do in order to find a meaningful income stream from a fixed income product? Luckily, no magic is needed this time around; Knowles Systems has found the solution.

Enter Commercial Mortgage Bridge Loans, which provides some of the benefits of traditional products, but with more advantageous returns and no long-term lock-up.

These notes can generate 6% or more in annual yields, and they’re secured by commercial real estate. What’s more, your commitment is only one year, making them among the highestyielding short term products you can find.

The Commercial Mortgage Bridge Loans are made possible because of extensive experience in the commercial real estate business. Properties with substantial equity in their holdings are sourced. Borrowers who need a short-term, commercial real estate loan are identified. These higher-rate loans, combined with lower loan-to-value ratios and a first lien position unite to provide clients with superb yields and proven, tested safeguards against loss of principal.

Lynette Robbins

ABOUT THE AUTHOR

Lynette Robbins