Is The Romspen Mortgage Investment Fund Legit? Investors Demand To Why Romspen Hasn’t Paid Full Investor Redemption Payments Since Early 2020

Romspen Withholds Partial Redemption The Romspen Mortgage Investment Fund has a shady and torrid history. Investors say Romspen management offers little to no transparency. The loans are part of Romspen’s “Loan-To-Own” scheme.

What is a “Loan-To-Own” scheme? Lexology defines “Loan-To-Own” is defined as follows:

“A loan to own transaction is the acquisition of a secured debt position in order to influence control and ultimately acquire ownership of a target business (and its assets).”

Smart investors run from Romspen and the Romspen Mortgage Investment Fund. Why? They know they get a safer investment from a loan shark in Las Vegas than they can from Romspen. Contrary to what Romspen says Romspen Mortgage Investment Fund does NOT have a history of stability. Additionally, Romspen’s lending practices aren’t the most ethical.

Romspen’s commercial real estate loans are hardly safe. They also don’t provide a steady income stream for investors.

Braden Maccke at Deep Dive pointed this out a year ago:

“Romspen is lending against projects that don’t generate any income! The borrowers aren’t going to pay back the principal and interest until they can develop the project, then sell it, or borrow against it at a higher valuation!”

One of the key warning to keep in mind about investing in Romspen. You will never see a return on your investment. Romspen management has frozen investor redemptions on their Romspen Mortgage Investment Funds since 2020. In addition, the fund’s reckless approach to risk management and it refusal to pay investor redemptions also offers nothing but despair and disappointment.

Romspen Mortgage Investment Fund has also built a solid reputation by deceiving investors and their borrowers.

For those seeking a reliable, secure investment in real estate, run far away from Romspen as fast as humanly possible. Experienced investors and real estate developers don’t invest with Romspen and there is a reason for that.