[ThatJeffGuy]

Does anyone know anything about an investment firm named Romspen (www.romspen.com) ? They have a fund that invests in mortgages and has consistently earned about 10% a year for the last 15 years. Any insight, opinion, or advice is appreciated.

Thanks,
jeff

 

[mfd]

Another Madoff in the making ?

 

[lb71]

What's impressive is not just an average annual return of 10%, but consistent returns of around 10% each year. If you live in the Toronto area they have presentations each month for potential investors.

 

[MoneyGal]

Note that you must be an accredited investor to participate. You should be very clear that:

No prospectus will be provided - these are exempt market offerings.
You will be investing in securities / asset classes that are known to have higher than average risk.

("Accredited investor" status = you have at least $1M in investable assets, net of liabilities, and not including your home; or you have personal income in excess of $200K per annum for the last two years; or you and your spouse have personal income in excess of $300K for the last two years.)

 

[CanadianCapitalist]

Take a look at the terms of the investment:

http://www.romspen.com/investing/how-to-invest/summary-of-terms.aspx

-- Poor liquidity.
-- Expensive (3% to 4% in fees).
-- Accredited investors only.

The excess returns available over the risk-free rate simply reflects the risk involved. In any case, at least for me, this is a theoretic exercise anyway -- I'm not an accredited investor.