Want to grow your wealth with minimum risks? When combined with traditional investments such as equities and bonds,MIC investment in Abbotsford provides consistent returns and comes with lower fees and reduced investment risk.
Careful real estate investing will return far more than a savings account, and it will frequently exceed popular mutual funds and exchange traded funds. Most importantly, it increases diversification in a portfolio of publicly listed assets. It is recommended that all investors, large and small, invest a percentage of their portfolio in private real estate.
If you are planning to invest in mortgage or real-estate, here are the key considerations you should not ignore:
What are the risks involved?
- No assurance of a large return: Generally speaking, the riskier an investment is, the higher the rate of return is.
- Line-up for compensation: Find out if a mortgage you are investing in is a first, second, or subsequent mortgage in case something goes wrong with the project. The first mortgage would be the first to get any proceeds from the liquidation in the event that the project fails.
- No fund for investment protection: Investments in syndicated mortgages are not supported by investor protection fund; therefore there is no assurance that you will receive your money back.
- Insufficient liquidity: There is no guarantee that there will be a market for the transfer or resale of the mortgage if you decide to take your money out before the term expires.
How long will the capital be locked up?
You should think about how long your capital will be locked up in the mortgage before making an investment. It’s probably not the best time for you to invest in this if you anticipate needing the money within the next year. Mortgages have terms, and investors who make direct mortgage investments are expected to stay with the loan for the full period.
A mortgage’s term can be as little as six months or as long as both parties decide. In the private markets, mortgage terms typically range from one year to three years. The most typical length of time that banks give for a residential mortgage is five years.
Will my money be returned?
When you give someone a loan, you do it with the understanding that they will reimburse you. You would most likely not lend money if there was little chance you would be reimbursed. If you are loan money, you should be informed of the borrower’s situation as this will help you determine how likely it is that you will get your money back.
If the borrower has a stable work, is known to pay bills on time, and repayment appears to be well within the borrower’s means, you stand a decent chance of being repaid. If the borrower fails to pay you, you have the right as a mortgagee to sell the property and profit from the sale proceeds.
Thinking of investing in a mortgage? If yes, invest in Versa Platinum’s mortgage pool in Abbotsford. We not only help our investors become shareholders, but also stand by their side from start to end to make sure they make the right investing choice.
