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Today’s low interest rate environment prompts
private investors, particularly those relying on
fixed incomes to seek high yield investment
opportunities such as private mortgages. Yields
of eight or nine percent are readily available
for first mortgage investments while yields of
twelve to fourteen percent are available for
investments in second mortgages. After yield,
one of the key attractions of these investments
is that they are a hands on investment that can
be easily understood. For borrowers private
mortgages offer an alternative source of
financing that fills a gap that institutional
lenders are unable or unwilling to fill
characterized by more flexible lending criteria,
expedience, or funding of unique investment
opportunities/ properties.
As broker we act as a conduit for private
mortgages between lender and borrower. Our key
role is to provide and disclose all information
as accurately as it is provided and to
facilitate the transaction.
If you enjoy choosing your own investments, a
private mortgage may be a good addition to your
portfolio. If you are interested in becoming a
private mortgage investor please contact us.
Typical private lending fees & costs:
Investor will charge a fee based on the loan
amount.
100K to 250K: 2% lender fee and 2% broker fee
250K or more: 1% lender fee and 1% broker fee.
Borrower is responsible for the appraisal fee
& legal costs of the lender/ investor. |
