Khuutra on 18 May 2010
| mrstickball said: Essentially, You give the money to the trust fund in the form of share buy-in. They take the money, and invest it into real estate. In AGNC's case, its usually mortgage repossessions...They buy a mortgage for a fraction of the face value, and either re-hab the home, get the money from the person in the house, or re-sell the home as is. All profits, sans the administration fee and raw costs, goes back to the shareholders in the form of dividends. Each quarter, AGNC returns about 5% of your investment in the form of dividends. |
Iiiiiiiinteresting
Sounds like it might not be particularly sustainable in terms of that profit level for very long, though
