Build a professional partnership with other entrepreneurs and purchase mortgage backed loans, known as a real estate investment trust. In an REIT your investment is joined with others to purchase a pool of mortgages that create income through interest and mortgage payments. The amount of money you generate by partnering with a reputable mortgage investment company depends, among other things, on how many mortgage pools are purchased and the time frame.

Understand the challenges of mortgage investments before you undertake such an investment. Investigate several real estate mortgage investment companies to insure they've been in business for a long time and are performing up to legal and ethical standards before you choose to invest. Verify that the company is practicing responsible lending and not lending money to those who are unable to repay their mortgages.

1. Investigate several options before choosing a mortgage investors group.

2. Understand the concept of mortgage-backed securities.

3. Consider real estate investment trust mortgages to generate income.

Action Steps
The best contacts and resources to help you get it done

Increase your income by investing in commercial mortgage investments

Partner with other professional investors to create a larger pool of commercial real estate investment mortgages or to purchase several commercial mortgage pools. Pooling multiple mortgages together provides the income needed to afford more mortgage-backed loans to help investors and the community profit as well as help the mortgage industry thrive.

I recommend: Hersha Hospitality Trust is a real estate investment mortgage trust that specializes in the hospitality industry, primarily hotels. Mack-Cali Realty Corporation is a mortgage-backed securities REIT that focuses on office complexes, managing and owning more than thirty million square feet of such properties.

Generate income through residential real estate investment mortgages

Partner with well-known mortgage-backed securities companies to generate the maximum amount of income while providing the maximum amount of community development by choosing companies that specialize in residential real estate investments.

I recommend: New York Mortgage Trust is a real estate mortgage trust that is dedicated to managing adjustable rate mortgages and securities-backed mortgages. United Mortgage Trust is a REIT that specializes in residential mortgages.

Work with reputable companies to find profitable real estate investment trust mortgages

Investigate investment trust opportunities so you know you're investing with companies who meet the legal standards in the mortgage trust industry and to ensure the company is following sound lending practices and not risking your investment. Making mortgage loans to those who can't afford the monthly payments hurts everyone involved, including the investors behind the mortgage trusts.

I recommend: Washington Real Estate Investment Trust is dedicated to the advancement of equity-producing real estate. HR Real Estate Investment Trust prides itself on the amount of payout it provides for its investors, making it a reputable and profitable company to partner with.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Explore both government-backed and private real estate investment trust groups to make the best financial decision for your investment return.