A good real estate mortgage investment conduit (REMIC) can be a great way for you to invest your money. In a real estate mortgage investment conduit, expert financial specialists pool together a number of mortgages and sell shares, similar to a bond. An investor should expect to receive back both the principal paid and interest.

The government regulates how much money banks can loan. When they are close to this cap, banks create real estate mortgage investment conduit opporunities in order to get more money to give out as loans to their customers.

Real estate mortgage investment conduit information shows that some of the advantages to REMICs are:

1. You can earn residual income for your business. As an investment vehicle, real estate mortgage investment conduits can help increase your bottom line.

2. You can avoid double taxation. Companies use REMICs to avoid the double taxation involved with collateralized mortgage obligations (CMOs). Because of this, many CMOs are now REMICs.

3. You can receive dividends more frequently. Many bonds pay their dividends semi-annually, but with a real estate mortgage investment conduit, you will often receive dividends on a monthly or quarterly basis.

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

Take classes to learn real estate mortgage investment conduit information

REMICs are not a common way to invest your money, so you may not know much about it. Fortunately, you can take classes to learn all about this investment vehicle. The real estate mortgage investment conduit advice you can receive at these trainings can help you make wise investment choices.

I recommend: REMIC Corp offers courses that discuss REMIC wealth building. They also have free wealth-building courses. Alternatively, you can become a member at ADVFN, where you can learn about investing with REMICs, as well as other forms of investing.

Invest in a REMIC through federal agencies

One of the most popular ways to invest in real estate mortgage investment conduits is through federally backed agencies.

I recommend: Talk to a real estate mortgage investment conduit management specialist at Freddie Mac or Fannie Mae. They can help you get started.

Purchase a real estate mortgage investment conduit through a private company

Most other private investment firms will allow you to invest in REMICs. If you already have an account, you may want to talk to an investment manager about your options.

I recommend: Open an account with TD Ameritrade or Fidelity Investments to get started. If you are unsure about how to choose investments, make sure that you talk to experts to get the best advice.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  While a real estate mortgage investment conduit is a great investment that is relatively secure, it should only represent a portion of your full investment portfolio. The best way to make money with investments is by having a portfolio that has different types of investments to balance each other out.