I unfortunately have a stake in an interesting fund which I did not realize I was in. We have an investment in a fund which has been buying mortgages for 40 cents on the dollar for mortgages over 1M dollars. The fund cannot pay out its investors even though it owns these mortgages at 40 cents on the dollar because of the illiquidity of this investment and is going Chapter 8 or something.
It’s a pretty scary market when you buy mortgages for .40 on the dollar and it’s not a good investment. I hope I eventually get my money back, but right now it’s 50-50. It’s less than 2% of my portfolio, but still I had no idea that I would still have investments in someone elses real estate, and when prices sink another 50% over then next 5 years, it will be a worse investment.
