Basically long story short:
I know a lot of rich real estate guys. One of them has a fund that pays 10% annual like clockwork
As i understand it, his business operates by taking money from this fund and giving it to RE developers and house flippers at like a 13% annual rate where he takes the house as collateral
So from my understanding, the fund can only fail if enough people default on their deals, which means everyone in the fund gets a bunch of real estate for a forclosure cost basis
Most of the people i know, people worth millions, just use this fund instead of the stock market.
Any red flags i’m missing here?