Private Investment in Mortgages
In Canada it is a quite common practice for individuals to invest their own money in mortgages. This can be done by using a mortgage broker to find the clients for you or privately by the investor. Individuals who have sufficient funds can sometimes fund mortgages that are in either first or second place on a property. This practice allows you to have control of the investment as you know sooner if it is going into foreclosure.
This is different than investing via a Mortgage Investment Company (MIC) where someone has pooled resources from a lot of people and you all share in the MIC profits at the end of the month or quarter or year. MIC’s have been very successful over the years but you lose control of your investment as properties are registered in the MIC’s name. As well MIC’s do have higher administrative costs. So your profits in most cases are lower.
Syndicated mortgages are different again and fall under the securities commissions regulations, we do offer syndicated opportunities but they are handled through a different licensed company.
Private mortgages are a good way to diversify an already strong rental portfolio investing the profits into more mortgages , most of these mortgage would be invested at 8 to 14 percent and secured by a first or second place on a property. You as the investor would see the property appraisal, the clients’ credit history and have a say in setting the interest rate for the loan. Most of the loans would be for less than 85% of the value of the property.
So if you have personal funds you would like to invest please contact us at 1-888-882-0786.
We have deals coming in weekly and we would glad to see if we could find a match for you.