Mortgage investing is often considered a higher yielding investment than most because it typically offers investors higher interest rates compared to traditional fixed-income investments like bonds or CDs.

When investors invest in a mortgage, they are essentially lending money to a borrower secured by a deed of trust or mortgage, which is a legal document that serves as a lien against a property. In general, the interest rates for these investments start at 12%+ depending on the terms of the mortgage and the borrower’s creditworthiness.

Additionally, private mortgage investments typically have a shorter term than traditional fixed-income investments, typically ranging from 6 months to 3 years. This shorter duration means that investors can see returns on their investment relatively quickly, potentially resulting in a higher yield compared to longer-term investments.