On this webinar, Origin Investments Co-CEO David Scherer and Managing Director of Acquisitions, Tom Briney, go over Origin’s Multifamily Credit Fund, including how the Fund works, the logistics of investing, and answer several questions from attendees.
The Origin Multifamily Credit Fund is a real estate credit fund that invests in conservatively leveraged Freddie Mac bonds that are backed by cash flowing and geographically diversified multifamily mortgage loans. The Fund is designed to deliver a high-yield, low-risk stream of passive income for qualified purchasers*.
Here are the primary reasons to consider investing in the Multifamily Credit Fund:
– Lower Risk: The Fund invests in Freddie Mac loans, which have a .076% average credit loss over the past 27 years. Even in times of economic stress, Freddie Mac B-piece bonds have demonstrated resilience.
– Higher Yield: The Fund targets a net distribution yield of 6-8%, substantially higher than traditional fixed-income investments.**
– Barriers to Entry: Origin is among a select number of firms invited to participate in Freddie Mac’s primary market auctions in 2022.
*A qualified purchaser is generally an individual or a family-owned business that owns $5 million or more in investments, not including a primary residence or any property used for business.
**As of August 18, 2021, the 10-Year U.S. investment grade corporate bond composite yield was 2.7%, the 10-Year U.S. high-yield grade corporate bond composite yield was 5.9%, from S&P Capital IQ. The S&P U.S. Mortgage-Backed Securities Index yield was 1.2% and the S&P/LSTA U.S. Leveraged Loan 100 Index yield was 3.9%, from the S&P Dow Jones Indices.
