Interested in becoming a mortgage investor? Want to put your dollars in a mortgage pool? When it comes to becoming an investor, there are so many ways you can invest in mortgages. To make sure you choose the right one, understand your needs and expectations and consult a mortgage investment consultant in Abbotsford to find out which investment type is best for you.
There are so many factors to consider when making a mortgage investment, namely, risks associated, convenience, returns, interest rates, and more. Private mortgage investments are a perfect choice for investors who need low risk investments and want to invest a low amount. Here are some ways to invest in mortgages:
- Direct Mortgage Investment
A direct mortgage or direct investment is a loan made by one lender to a single borrower via a single investor. In this investment type, a mortgage manager search for the borrower who need funds for mortgage and connects him/her with an investor who is interested in the type of investment being needed. This allows the investor to specify the type of asset, LVR, returns, and loan period for which they are ready to lend their money. The most important thing to know about direct investment mortgage is that the investor, not the mortgage manager makes the final decision of whether or not to lend the money and on which terms.
- DIY Mortgage Investment
As the name suggests, in this type of mortgage investment, an investor makes the entire investment on their own by identifying the potential lending opportunities, conducting due diligence, and putting in their funds in a DIY mortgage investment. Since there is no middle man or investment advisor, an investor is itself responsible for managing the loan and ensuring timely repayments by the borrower. One of its advantages is that you are your own master and can make your own terms, such as loan period security, interest rate, and loan-to-value ratio. Whereas the disadvantage is the risk factor associated with the investment. Since it requires a lot of effort to finding the right borrower and obtaining repayments, there’s a great chance of a borrower defaulting.
- Mortgage Pool Investments
One of the safest and reliable investments is mortgage pool investments, where an investor invests his money in a mortgage pool with other investors having same mindset. A mortgage manager handles the pool and makes the decision on which mortgage borrower to allocate funds to. This is a form of passive investment as the manager due diligence and loan management while the investor just puts in the money and receives consistent returns in the form of quarterly dividends. One of the best benefits of investing in a mortgage pool is enhanced portfolio diversification.
So, these were some ways to make mortgage investments. If you are looking for a reliable mortgage investment corporation in Abbotsford to help you with mortgage pool investments, rely on none other than Versa Platinum. We are a leading MIC in Abbotsford, assisting potential investors in making a successful mortgage investment with minimum risks.
