In a study that should shock no one, a survey by a New York law firm uncovered that, "Wall Street has a shaky grip on its ethical compass..."  Investing in private mortgage notes not only has a higher return than stocks and bonds with much less risk, it is also a far superior way to profit that has a much higher moral calling.Private Mortgage Investing

An article in USA Today by Kevin McCoy reported on the survey by Labaton Sucharow, a law firm based in the financial district of New York City.  While the securities markets do perform a necessary function in allocating capital to its most efficient usage and not everyone on Wall Street is evil, the only reason, by and large, to go to work in finance is to make money...and that makes a person greedy!  That is not the case with investing in private mortgage notes.

When an individual invests in private mortgage notes, that results in the purchase of real estate.  There are many public services performed by that.  The borrower could need the private mortgage so that a property could be restored, which adds value to all the other homes on the block; and the entire neighborhood.  A private mortgage might also allow for a family to buy a home.  Traditional lenders such as banks, credit unions and mortgage brokers have pulled back from mortgage lending tremendously since The Great Recession.  

That is why there is such a societal need and consumer craving of all types for private mortgage financing.

This demand from prospective homeowners and others seeking to buy real estate has resulted in private mortgage financing being very profitable.  Private mortgage notes generally yield in the double digits.  If researched and structured properly, there should be few, if any, defaults.  It is rare to come across an investment that has such a high return while protecting the individual.

When is the last time you heard that no one on Wall Street had lost any money for a client?

If the securities markets did not exist, there would be a need to develop financial exchanges of some sort.  But the lack of moral direction and ethical behavior on Wall Street as reported by Kevin McCoy in USA Today is truly troubling.  The impact of The Great Recession, resulting in large part from Wall Street greed, should never be forgotten.  

The best way to honor the memory of the damage done by Wall Street before, during and after The Great Recession is by investing in private mortgages.  These serve a necessary function in allowing for those to purchase homes and other properties who might not be able to, otherwise.  With private mortgages, investors do well and do good, as the returns are much higher with a much lower risk, both ethically and financially.