Or, to put it differently, is the risk premium adequate to compensate the investor for a given level of risk.
To answer this question, a distinction must be made between nominal investment rates of return and real investment rates of return. For example, the current nominal, or stated, rate of return (at par) on a 10 year Treasury bond is 1.32%. To calculate the real rate of return, the current inflation rate must be deducted from nominal rate The Wall Street Journal currently reports the inflation rate at 5.4% (all items). Thus the real rate of return on a 10 year Treasury bond in -2.98%. This means that the investor is losing 2.98% on their investment in real terms. Another example, it is reported that High Yield Bonds, or “Junk bonds”, are yielding a paltry 3.29%, or a -2.11 – not much better than the 10 year Treasury bond. Thus the question: is the current credit market properly priced? The answer must be a resounding NO! Why are investors willing to accept negative investment returns? The answer: from a risk-adjusted standpoint There is No Alternative, or what is now commonly referred to as or TINA! But there is an alternative – Alternative Debt Investments.
Alternative Debt Investments provide investors with Bond-like security with Equity-type investment returns. Much like bonds, Alternative Debt Investments (Alternative’s) are collateralized by assets – often real estate assets. Asset collateralization is why credit instruments typically offer lower rates of return (less perceived risk). However, Alternative’s provide higher rates of return than most bonds – often 10%-20% higher (equity-type returns), while also providing the asset collateralization of bonds. There is more good news. Because of the short duration of most Alternative debt instruments, Alternative investments are more capable of keeping pace with rising interest rates and inflation.
WINPRO OFFERS INVESTORS
Safe Investment – all WINPRO’s commercial real estate loans are collateralized providing investors bond-like security.
Cash Flow – 10% Preferred Return distributed to Investors quarterly.
Loan Fee Sharing – 50/50 Split Investors/Management (Yield Accelerator)
Profit Splits – 80/20 after the preferred return to Investor.
Capital Appreciation – Loan Purchases (Yield Accelerator).
Diversification – Alternative SEC Reg D. Debt Fund
Secure Investment – All capital secured by commercial real estate property(s)
Tax Advantages – Potential Capital Gains Treatment.
Professional Management – Over 50 years of Commercial Real Estate experience.Be sure to let your friends, family and colleagues know about WINPRO’s exciting investment platforms.https://winprofunds.com/wp-admin/post.php?post=6425&action=edit#
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