Many people want to be able to invest their money in real estate. The thought of owning property that they then can rent and collect payments each month is something that most people can only dream of. The risk of investing in real estate is relatively low since the real estate market tends to only go up. But, having the ability to make the initial investment is usually the problem that most people have. When Mike Nierenberg began his company, New Residential Investment Corp, the problems were the same for him. He needed capital in order to make the investments that he wanted to. The solution he came up with was to have private investors put up the money for these purchases. The result was that Mike was able to purchase several properties and use the money he was collecting each month to pay back those initial investors with interest.
After doing this for several years, he then began purchasing mortgage notes from traditional lenders at very reduced rates and collecting on those mortgages each month. This pattern continued and New Residential Investment Corp took off. The company continued to increase the amount of properties they had in their portfolio and the revenue generated by them was used to make additional purchases. Over time, they expanded to include many commercial properties as well as apartment communities and more and more revenue was generated. Mike used his knowledge of the real estate market to make his investments and put together a team of professionals who all had experience in monitoring the status of them.
New Residential Investment Corp expanded its operation to include a branch that provided mortgage loans to homeowners. This was in conjunction with several other companies and the investment proved to be a success for them. Recently, Mike Nierenberg and the team at New Residential Investment Corp made the company public and began trading stocks on the stock market. Initially, the price of the stocks was kept low so that anyone could invest in them and the price of them has been going up since they were released. Company representatives are quoted as saying that they knew there was interest in their becoming a public entity but had no idea just how much there was. New Residential Investment Corp is always looking for new ways of investing their money and are planning on several new projects in the upcoming year.