Stockchase InsightsFirm Capital Mortgage InvestmentFC.TORISKYSep 20, 2023

An alt-mortage lender, typically at 10% and mostly are construction loans on land bought by developers--much riskier. They maintain an 8% yield, so are a pure yield play. Whenever they need to grow, they issue more stock, so you don't get capital gains. 

He prefers the private space, because they are just getting the trend on how much you are receiving from the mortgages. You are getting a lot more ability, and pricewise it is about the same. Firm Capital is a well-run company.

A mortgage corp. They invest in mortgages, both commercial and residential. It is a very well run company that has a nice dividend. There is a potential for them to be impacted by the new mortgage rules if the housing market slows down.

Lending for real estate projects. As interest rates rise, there might be a slowdown in projects so could slow down business for this one. Maybe this real estate cycle is long in the tooth on the building side. He owns more REITs instead of the financing side.

High payout ratio, but more like a high yield bond. They pay out most of their profits. There is no capital appreciation but you get 9 or 10% payout during the year. The stock is not designed to go up. It goes up and down with the appetite for yield.

This would be among the best.Concientious management. Has had a little bit of a correction but feels that correction is based on interest rates, not anything that has gone on with the company.

This company doesn’t retain any of its profits. Pays out 100% of its profits in the form of dividends so the BV per share never grows. This is like a high-yield bond.