One negative aspect of non-regulation of hedge funds is fact that there are no official hedge fund statistics. Most hedge fund holders are large companies and so little is knows about their financial movements. Hedge funds are based in offshore jurisdictions, making them seem even more suspicious. Unlike mutual funds that have a base in large cities like New York, Hedge Funds are based in places like Bermuda, Cayman Islands, and Virgin Islands. It may seem strange to call your fund manager in Bermuda rather than to call someone in New York City.

Another negative aspect of hedge funds is their high price tag. Hedge funds seem to be more suited for large businesses and companies that are merging than they are suited for average worker. Hedge funds usually require an extravagant amount of money for initial purchase. If someone does have money, however, they can gain even more money with this sometimes high-risk venture.

Hedge funds have potential to help an investor gain quite a bit of money. However, hedge funds undergo a great amount of scrutiny because of lack of regulations and general secrecy surrounding hedge funds. Hedge funds are based offshore and have been rumored to hold as much as $665 billion. Some reports even state that at one point, 39 firms were managing hedge funds worth $1.1 trillion. These startling numbers show that hedge funds can be quite lucrative.

Why Invest In Low Income Housing?

If a nice two bedroom house in a small town costs $130,000 and rents for $800, an old mobile home on a lot will probably cost $45,000 and rent for $500. Notice that house costs almost three times as much, but rent you get isn't even doubled. This means mobile gives you MORE CASH FLOW. That is why old houses and mobile homes (on land) are such good investments.

It's important to note that you'll have more risk and management problems with low income housing. Repairs come up more often, and rent will be late more often, on average. This is why you deserve a higher rate of return. Otherwise, who would want to provide low-cost rentals?

Treat your renters well, and make your places safe. Do these things, and you can enjoy a good return on your investment - even if some want to call you a slumlord.