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Investment, will help you to retire fast, with money in your packet

Most people are not familiar with private mortgages. There is nothing new, but rather a business as usual in the financial industry to turn to private individuals and or mortgage investment companies to get a mortgage when banks turned applicant down. Private mortgages fill the gaps that institutional lenders, such as the banks, are unable or unwilling to lend. They offer an alternative source of financing to borrowers and a high yield investment opportunity for investors.

Institutional lenders have their lending criteria, guidelines written and they are not able to approve some request if it does not fit the parameters of such. However private investors are able to review and make their decision on case to case bases, using their common sense and making their own decision. Due to the higher risk, these mortgages cost more by rate and fees as well so investors can usually generate a greater return on their investment in a private mortgage transaction, risk assessed rate and fee charged.

logo creatorBorrowers forced to see alternative lending sources must turn to private lenders.  Private Lender Inc. is a private lender firm, lending its own funds from his own investment capitals and also has many private investors lending their funds on the recommendation of Zoltan M. Padar president of Private Lender and also broker at MortgagePRO Ltd. Location, MortgagePRO is not licensed will be referred to many of our licensed co brokers and or private investors to ensure positive outcome.

Investors in private mortgages must be willing to take risks. They must be willing to become involved in the investment process and must know what their tolerance to risk is. They should not simply rely on the recommendation of a lawyer, a real estate agent, or a mortgage broker when entering into a transaction. They should fully understand what they are getting involved in before they agree to invest their money in any transaction.

Here are some issues the potential private lender must be clear with before investing:

  • location is where they want to lend the property located
  • property designation; residential, commercial, industrial or recreational
  • position they are willing to lend: first position, second and or beyond
  • the so called LTV. Loan to value is the indication of risk involved
  • the amount for each mortgage
  • first mortgages require large capitals, however second mortgages start at $15,000
  • interest rate investor wish to earn, higher risk, higher return
  • using own investment capital or RRSP
  • advantages of using RRSP are: tax savings on three different ways, profit is also sheltered from tax

Yields on mortgage investments determined by risk. In today’s market you can expect a yield of 10% to 13% for a moderate level (75-80% LTV) of risk. 85% LTV will bring you 16% or even better return. Minimum investments of $15,000 are required for private mortgages.

The typical borrower who needs private financing:

  • self employed individual
  • someone who may have had a bad credit history in the past
  • borrower does not fit the TDS GDS requirement of the bank

Private mortgages can also be held in a self-directed RRSP. Mortgages are an ideal RRSP investment because they earn interest income that can be sheltered within the RRSP. If you were to invest in a mortgage outside of your RRSP your interest income would be taxed at your full marginal tax rate, thus lessening the benefit of your investment. Find more about this opportunity here.

In summary, private mortgages can be a very rewarding form of investment but they are very much a hands on investment. You must be willing to take the responsibility to choose the investment that meets your needs and your tolerance to risk.

If you are interested in making an investment in private mortgages, or would like more information, please contact Zoltan M Padar 403-253-2022

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Importance of due diligence for private lenders

There is no way to invest 100% risk free. But it is a way to mitigate your risk and bring the exposure to it to a more comfortable level. It called “due diligence”  More of the information you have about the potential opportunity to fund a mortgage, better you will be able to make a decision. First of all, when you receive a request for a mortgage from you Mortgage Broker, you should get a package including:

  1. Application containing clients information, address, phone number, property address, indication of preceding mortgage if you are supposed to fund a second or beyond mortgage, client debt  level, client job information and indication of income (all the information provided in the application must follow documents as proof of the information at a later date, unless the Broker already has it and attach it to the request up front)
  2. Appraisal is very important unless you are a seasoned lender and will make your own evaluation based on property assessment and MLS listings. Some instances the borrower wants to see a commitment from the lender subject to property value and then only pays for an appraisal.

    RRSP investment with great return and substantial tax savings

    RRSP investment with great return and substantial tax savings

  3. Credit bureau will show first of all a Beacon score. Many lenders are sensitive, however as a private lender it means only one thing; the lower the score is, the higher the risk is and the higher the rate investors charge in return for tolerating. Careful analysis of a credit bureau will give you much useful information about the client’s character and financial well-being. Make note, if the client has a great score and good history, the banks will provide them mortgage with a great rate and you will not be given the opportunity for a great return. Clients with issues will pay premium rate. In any case, till you are familiar with credit bureaus and know how to read them, you need to consult your Broker, sent you the request and ask questions.
  4. Miscellaneous documentation might or might not be included in the initial package, however it is the practice your Broker wants to see first if you are interested in the deal or not.
  5. Lender Proposal/Disclosure Statement will provide you with a knowledge of client, property, preceding charges and the request made by the client. The amount of the mortgage requested, the rate might client will agree to, the fees charged by the Broker and others, the fees for other services, the Loan To Value Ratio and a synopsis of the application. Also it will remind you  of the importance of the “Due Diligence” process and that you are encouraged to make it thorough as the decision is yours and yours only.

Turning down a request is better than pushing through and have problems later on.  Even a well researched and considered mortgage can go “sideways” and a looks like very complicated and high risk mortgage can be just fine. Your Broker will certainly will provide you support and advice but you must make the approval yours and not of anybody else’s. After all it is your money.

MortgagePRO president Zoltan M. Padar is also a private lender for over two decades, lending his own funds and provide opportunities to private investors like you to lend your capital and or your RRSP funds into mortgages, secured by real estate across Canada. Visit him on his own website and also on the website he is promoting lending by investors. Never too busy to answer your question, just email Mr. Padar, you will get an immediate respond.

 

Investing Smart is a way to get a better life

hammock_RRSPAccording to a new report from TD Economics, investors need not worry about the housing market crashing over the next ten years.
The research paper released just recently predicts that after the housing market has undergone a “gradual, modest, downward adjustment over the next three years,” the annual rate of return for real estate will dip to the 2 per cent mark – and stay there.“A string of lackluster performances will mean in nominal terms will be roughly 2 per cent over the next decade,” says the report. “In other words, real estate gains are set to match the pace of inflation.”
Queens University real estate professor John Andrew agrees with the projection. “I wouldn’t even be surprised if the growth rate for housing is less than inflation over the next decade,” he says. The findings are in stark contrast to predictions from Moody’s Investors Service, which claimed yesterday that Canada was on track for a severe correction with prices being knocked down by 44 per cent. TD chief economist Craig Alexander says the bank’s report disputes claims like these that propagate the belief a correction is on the cards.
“I do not think we have a housing bubble in Canada,” he says. We have had abnormal strength in the market during a period of low-interest rates and when rates go up over the next three years, you will get a cooling and weaker prices, but not a permanent shock and not a sharp correction.”
But with two reports in as many days offering such conflicting projections, it’s important that investors be mindful of the relevance of such macroeconomic national reports”
“Investors have to remember this is talking about national averages and price changes, it’s not really relevant to the average investor investing in a local market. Even within a local market, you’ll have different asset classes that will perform differently – what’s happening in the housing market will be different to what’s happening in the condo market. Large scale, ten-year predictions like this – it’s something to be aware of, but not something Private Lenders would be worried about as an investor.”   Predictions in the report will likely come to fruition, and points to two key variables investors should consider when analyzing the market in the long-term. “One is income growth,” investors say “and I think this report is quite accurate in terms of their predictions regarding this. We’ve already seen a significant slowdown in income growth across the country.” We predict the rise of interest rates as another key variable. “We may not see them rise for the next 3 or 4 months, but when they do – even modestly that will have significant cooling effect on the market as well.”

private mortgage lenders, private mortgage investors, rrsp investment, private lender inc, mortgage investment opportunities, http://www.myrrsp.com, http://www.myprivatelender.com

Armchair investments with double digit return

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Secured First and or Second Mortgage Investments

  1. no Cost to Investors, all cost is paid by borrower
  2. own investment capital and or through Your Self-Directed RRSP
  3. protected Capital by prime real estate
  4. returns of an average 16% annual depending on risk, equity, location, etc
  5. securing monthly income
  6. $10,000.00 Minimum Investment
  7. one year interest only terms, renewable at lender’s discretion
  8. we provide you with the Mortgage Opportunity, you choose the mortgage investment and your lawyer prepares the documents
  9. we also provide you with a comprehensive investment package for your consideration, including an application form, Credit Bureau report appraisal, summary sheet and other pertinent information
  10. you make your own due diligence and decision to fund and or turn a request down
  11. huge TAX ADVANTAGES when you invest through your RRSP Plan call to find out

This is not solicitation to invest your capital into a pool. All mortgages offered to individual private investors to fund individual private mortgages. MortgagePRO Ltd. will be your intermediary and act as a brokerage unless otherwise advised.

Your investment, your money, your decision. We will keep you well-informed to enable you to make the right decision each time.

Investors log in to our website for more information about this opportunity.

You money, your decision, your investment: you are in control

Secured First and or Second Mortgage Investments

  1. no Cost to Investors, all cost is paid by borrower
  2. own investment capital and or through Your Self-Directed RRSP
  3. protected Capital by prime real estatemortgage investments
  4. returns of an average 16% annual depending on risk, equity, location, etc
  5. securing monthly income
  6. $10,000.00 Minimum Investment
  7. one year interest only terms, renewable at lender’s discretion
  8. we provide you with the Mortgage Opportunity, you choose the mortgage investment and your lawyer prepares the documents
  9. we also provide you with a comprehensive investment package for your consideration, including an application form, Credit Bureau report appraisal, summary sheet and other pertinent information
  10. you make your own due diligence and decision to fund and or turn a request down
  11. huge TAX ADVANTAGES when you invest through your RRSP Plan call to find out

This is not solicitation to invest your capital into a pool. All mortgages offered to individual private investors to fund individual private mortgages. MortgagePRO Ltd. will be your intermediary and act as a brokerage unless otherwise advised.

Your investment, your money, your decision. We will keep you well-informed to enable you to make the right decision each time.

Investors log in to our website for more information about this opportunity.

Many reasons to invest in private mortgages!

The most secured and durable investment is real estate property. History has proven that although real estate prices may have fluctuated from time to time, over the long-term real estate property has appreciated in value. The security for a mortgage is real estate property.Private mortgagesprovide a regular income stream, tangible security and a real return to the investor that is superior to bank deposit, GICs and bonds. The big-chartered banks in Canada have often been criticized for charging exorbitant service charges. However service charges at best probably only cover the overhead costs incurred by the banks in their operations. Their favorite money making venture is undoubtedly the mortgage business.

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Great Incentive!

There are reasons why these investments are so highly sought after, which include the following:

  • Low Administration Costs: Each of us who have had a mortgage know how long it takes to pay this debt off. The Banks know this as well. The borrower is required to pay the costs to have the mortgage registered against title to their property. The Bank simply sits back and goes about cashing the monthly payment for years without incurring any further cost whatsoever.
  • Cash-Flow:A mortgage generates cash each and every month. Obviously the amount of the monthly payment will depend on the size of the mortgage, the interest rate and amortization period. However the payment comes in each month if the borrower does not want to lose their home. The fact is that the mortgage payment will be the last payment not made by someone in financial difficulty, and if bankruptcy occurs, a mortgage holder’s security is not affected by the borrower declaring bankruptcy.
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  • Protected Capital: Perhaps the main reason why Banks love mortgages, and why they fight tooth and nail with each other for this business, is the low risk associated with these investments. Obviously the risk associated with a first mortgage is less than the risk associated with a second mortgage, but then again the return from holding a second mortgage is substantially greater.

Private mortgage investments can be funded by you in and or outside your RRSP gives a minimum of 10% Yield Rate of Return Secured by a First or Second Mortgage on a Real Property in Canada. There are huge tax advantages to use your RRSP savings.

At a rate of 10% yield rate of return, your RRSP portfolio should double in value every 7 years according to the rule of 72. At 16% return you will have a real chance retire at the age you can still enjoy many years in dignity.

Private mortgages can be a great investment, since there is great security with the equity on real property. Even if a debtor reneges, the property can be used to help pay off the mortgage.

It is also an easy investment to make – private mortgages require little baby-sitting or watching of an investment. Money is paid regularly and the lender is fully covered by the legal documents signed at the time of the mortgage, ensuring that the investment as well as a profit is collected. Ourshort video presentation provides you more details on the process.

 Since private mortgages are so good for investors, many think that they do not offer a great deal for property owners, but this is not always the case. Property owners turn to private mortgages for many reasons. Not all private mortgages are high interest – some do offer good rates. In some cases, property owners turn to private mortgages if they simply are a very poor credit risk and cannot get financing elsewhere – and then switch to a non-private mortgage with better rates as one’s financial status improves. Finally, there are usually no greater risks with private mortgages than with other types – the same legal documents are used to protect the lender. 

Armchair investment opportunities

Zoltan M. Padar president MyPrivate Lender

president

What is the secret in and why is it so popular to invest in Private Mortgage Opportunities? Because it can provide you a double digit return between

 10-18%

securing you monthly income!

Maybe because it is RRSP eligible with extra added advantages, like save your hard earned money from the taxman and pay no tax on your great return, till you retire and you are in a lower tax bracket and most likely will pay lower tax?

Maybe because it is truly an armchair investment, thus you can manage it from anywhere on the planet as the decision is always yours and not some faceless bureaucrats?

Maybe because you can not lose at this game as your collateral is fixed and rigid?

Maybe the security, brick and mortar securing you funds like in the good old days?

We are experts guide you and provide you with information how to take advantage of this opportunities, besides we are to provide you the opportunities to invest in mortgages, secured 120% with prime real estate across Canada. Our video excellent info source of the opportunity and the process.

Contact our president.