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borrow to invest in RE fund

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  • Nysoz
    It's just a form of leverage. It's up to each individual person if they want leverage/debt in their life in order to invest more.

    As for this particular RE fund, I wasn't familiar with it so I had to google it. I wouldn't invest in it solely because this picture has water falling from who knows what randomly.

    Anyways, seems like there are a lot of fees and it sounds pretty illiquid. They do appear to have a decent track record though.

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  • deanyar
    started a topic borrow to invest in RE fund

    borrow to invest in RE fund

    I am in my late 40s, and at the beginning of the year, we paid off our mortgage to be debt free for the 1st time in forever (yay!!).
    I thought that I would never borrow again...
    Tomorrow, we are taking out a mortgage against our home for $250K (15 yr fixed at 2.5%), and that money will go directly to Origin Investment's Income Plus Fund. I rationalize this because 1) the rates are so low, and 2) in order to invest in private RE funds, you need to have a chunk of cash at one time, and I am hesitant to sell off any of our publicly traded investments to do this...and it would otherwise take many months to accumulate this amount of cash prospectively. I will probably pay off the new mortgage in 5 years, all the while keeping our investing plan and goals intact.

    So, my question is: Going back into debt = Crazy? or crazy smart?