How It Works
With Mortgage REIT’s, your investment goes into a pool of funds which is then lent out to one or more borrowers. Interest is collected from the borrowers and then paid out to investors as dividends on a monthly basis. When the loans are paid back, the funds are immediately recycled into a new loan, so your investment is always at work for you.
- Brisco Funding loans are all secured by first‐position mortgages—no second mortgages or unsecured notes.
- Our borrowers put down a minimum of 20% into each deal. This “skin in the game” is why we have never had to foreclose on a borrower.
Other debt funds put your investment into a single loan, which has two disadvantages. First, there is more risk since you are less diversified. And second, when the loan is paid back, your money is no longer earning a return. With Brisco Funding, your investment is spread equally over all loans in the portfolio and is continuously earning a return.
- Other funds employ leverage (i.e. debt) to boost returns. Our fund is debt‐free.
- Our loans are at a low 65% LTV. Other funds go up to 70% or higher, which is riskier for the lender.
- Brisco Funding pays investors a flat 9% preferred return.
Other funds may state a higher return, but they don’t account for the time your money is idle between loans, so the realized return may be less.
- Manager is paid a low ½% management fee and has more than $1M of his personal funds invested.
Perfect Track Record
We have a perfect track record of making interest and dividend payments to our investors. In our five year history, we have never missed a payment or made a late payment.