The one aspect of mortgages that I have tirelessly promoted to my clients is that they are not just a debt instrument. They are in fact also an investment vehicle. This idea gets lost with a lot of folks however those who understand have the potential for great gain. I have always approached each of my clients as not only a borrower but also as a future lender. This has had the surprising effect of empowering them to think further than just paying off their mortgage to how can I start earning returns on my hard-earned, after-tax dollars. In some instances, this has become in fact the strategy to pay down their mortgage in a very short period of time.
I am always on the lookout for interested parties as investment partners in first and second mortgages as the returns range from 5-15% and more. How this works is we have an initial consultation where you specify your risk profile, geographic lending area, as well as what type of returns you are looking to achieve. I take this information and as opportunities come across my desk, I pre-qualify them based on your criteria so we are not wasting your time. Once we have found a match, we complete the necessary due diligence just as though the borrower was approaching their bank for the loan. Once this is completed to your satisfaction, either your liquid cash reserves or your RSPs can be directed through your lawyer’s trust account to fund the mortgage.
Investing in mortgages is a safe and profitable way to earn the returns you need to keep up with inflation and stagnating incomes. As the investment is registered against the title of the borrower’s property and we generally don’t loan over 85% of the property’s value, in many ways this is safer than a mutual fund. Let’s get your money earning you money today.