Mortgage investments are not only safe and secure but lucrative as well.
While the stock market can offer incredible returns, it also comes with a high level of risk. Alternatively, government backed securities offer very little risk, but returns might not even keep pace with inflation. Private mortgages offer the best of both worlds — very little risk and a great return. Here are a few reasons for you to consider investing in private mortgages.
1. You get better rates than the banks do. In today's market we typically get up to 14% returns.
2. Being a lender is a lot better than being a landlord. If you’re the landlord, the onus of the repairs falls on you. Toilet leak? Your problem. Leaky roof? Your problem. If you're a lender...none of those are your problem.
3. You get to set the terms of the loan. As a private lender, you have a little more flexibility, as you can set the terms how you want them.
4. You base your lending decision on the property, not the borrower.
Our team has been facilitating and investing ourselves since 2005 and we welcome the opportunity to show you how safe, secure and lucrative mortgage investments are. You can use your investment capital but best of all, can take advantage of the huge tax advantage of using your RRSP.
One of the most secure and durable investments is real estate. The security for a mortgage is the real estate property itself, making mortgages a good and safe place to invest.Your name is registered on title, just as a bank is and therefore you are in control. The real property is your security.
Investing in private mortgages can provide a regular income stream, tangible security and a real return to the investor that is superior to bank deposits, GICs, stocks and bonds. And because they are RRSP eligible, your income can grow inside of your RRSP tax free.
Here are some advantages of investing in private mortgages.
1. No Cost to You - The borrower is required to pay the costs to have the mortgage registered against title to their property. The investor simply sits back and goes about cashing the monthly payment without incurring any further cost.
2. Monthly Income - A mortgage will generate cash each and every month. The amount of the monthly payment will depend on the size of the mortgage, the interest rate and amortization period.
3. Secured Capital - There is a very low risk associated with mortgage investments as they are secured by the real property.