Lending and Investing in Private Mortgages

Real estate debt investing presents an alternative asset class that can protect and build wealth.

Three traditional reasons for investing in private mortgages include:

1. Portfolio diversification
2. Accessing premium and generally secure income yeilds
3. Potential for attractive total returns that should be protected from inflation
 
(Source: Stanyer, P. 2006)

Lending a private mortgage at a comfortable loan to value presents an investor with the benefit of earning a fixed stream of income from real estate with limited exposure to real estate equity.

The advantage to investing in an individual mortgage as opposed to a MIC or fund of mortgages is that you, the investor personally feels comfortable with the asset and terms, there are no fund managers to pay and you don’t have to worry that you are taking exposure to unhealthy real estate assets. You give up the diversification of a fund of mortgages to gain greater control and to keep more of the returns.

There are opportunities to lend private mortgages from a wide spectrum, including residential / commercial, urban / rural, in-construction / completed.

We specialize in matching individual investors to mortgage lending opportunities that suit their ideal profiles, in BC and Alberta.

If you are considering buying an investment property in this real estate downturn, consider first, what would be your expected return on the equity that you put up?  Then contact me to discuss what the current yields are in the private mortgage market.

Investing in a private mortgage is an RRSP eligible investment.

Contact Shannon to discuss private lending at:

778-855-5465

Email Shannon

Shannon Quickfall, BBA

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