Private Mortgage Investing
Investing In First & Second Mortgages
Provides private lenders with cash flow, security & control
Disappointed by the current returns of GICs, mutual funds, stocks and/or want to invest in vehicles that are based upon the secured returns of real estate?
Any Individual can become a private lender by investing money in a residential or commercial first or second mortgage. The borrower may need a private mortgage to purchase a property or require second mortgage financing for an existing property. You will essentially assume the same rights, privileges and profits that banks enjoy. Your lawyer and your mortgage broker/agent will all be working on your behalf and will be the ‘middlemen’ between you and the borrower.
Rates of returns from 8 – 16% per annum
Investments directly secured by real estate
Monthly income payments payable by the borrower
Borrowers are responsible for all closing costs
You Are Able to Control, Choose And Approve:
The lending area (city, region or province),
The term (6 months, 1 year or 2 years),
The borrowers (based upon their application, personal interview, credit bureau, etc.),
The type of property (condos, single family homes or townhouses).
You Determine Your Cash Flow
You select your ‘fee’ for lending the money (typical range is $500 – $5000+).
You select an interest rate which sets your monthly cash flow (typical range is 6% – 14%+).
Your Funds Are Secure
Your interest is registered against the title of the property.
The Power of Sale process secures your funds.
You can demand that they order an appraisal and home inspection.
You can choose the amount of equity that you want left in the property. This is also called LTV (loan to value).
You can choose the method of payment that you want (monthly by post-dated cheques, interact payment or automatic bank transfers).
High Rate Of Return
The average private money lender’s ROI is 8 – 16%, which is higher than with GIC’s and mutual funds. Investors will discover that this investment vehicle is very suitable for cash flow and principal protection!