Mortgage REITs certainly sound interesting but what are they? Well, for starters, they are one way have exposure to real estate assets and cash flow without actually holding any physical properties. Mortgage REITs are all about the securitization of various properties. See, when you invest in Mortgage REITs, you are investing in securitization or to put it more simply, the financing and packing up of real estate properties.
These mortgage REITs that Michael Nierenberg and real estate company specializes in, go a different way, they do not simply look for good performing real estate assets and hold it to realize the appreciation in value and the necessary income flows, they are looking primarily at how the numbers will work in the back-end to make deals flow in a smooth manner. In this regard, they are looking at all aspects of the financial nature of these different deals. They are looking at different derivatives, hedge tools, and other financial instruments to capture interest portions of each deal on a consistent and constant basis.
Michael Nierenberg and Team Understand the Power of Mortgage REITs
Investors in mortgage REITs will be glad to know that they will be able to gain from strong dividends in great times and decent dividends in times of economic downturn. Proper mortgage REITs, Michael Nierenberg knows, will have a specific concentration in a field. This means that individuals who are managing and operating a mortgage REIT will need to be proficient in what they are doing and will want to start off in a simple manner and build up from there. Investors should look into the backgrounds of the partners and executives that are running the firm to see what they have done in the past, how their performance was, and how deep their concentration is, within their specific field. Individuals like Michael Nierenberg have been in the mortgage backed securities field for their whole career, this is essentially what he does for a living.
Michael Nierenberg and New Residential Investment Corporation Deals with MSR’s
Michael Nierenberg and his current company are focused on making sure to have stability in this volatile economic environment.
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