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.

 

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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

Values up, risk down, time to invest

As a Private Mortgage Lender you understand, how important it is to be at a low LTV. In today soaring Alberta home values, todays 85%LTV will become real fast a 75% LTV tomorrow, mitigating your exposure lower. Visit us and sign up to receive lending opportunities from us.
your futureCalgary’s resale housing market started off 2013 with a bang, with a 15 percent increase in sales over January 2012 results, and in fact its best January for sales since 2008!

The Calgary Real Estate Board® (CREB®) reports a total of 1,230 sales for January 2013, a significant increase over the 1,068 sales reported in January 2012. Single-family homes accounted for 879 of January 2013 sales – an increase of 15 percent over January 2012 single-family home sales. New listings for single-family homes remained just above levels recorded at the same time in 2012 for a total of 1,737, although listings for other home types dropped, to result in a slight overall decline in total new listings for January.

“While activity is typically slower in the winter months, recent improvements in single-family new listings helped support improved sales in that market,” explained CREB® President Becky Walters. “Overall indicators put the market in balanced conditions.”

If you’re thinking about listing your home, it’s a great time to do so as inventory levels are still low. CREB® notes that a lower level of inventory can pose a challenge to buyers, as they feel the need to make their buying decisions quicker than buyers have done over the past four years.

Whether you’re thinking of buying, selling or “just looking”, you’ll want the most up-to-date market information available. Please call today for the latest updates in your area!

By: Richard Conover of Real Estate Professionals www.calgarycondos.org

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.

How hot is the Alberta Real Estate Market; time to invest, yet again…

CALGARY — Alberta will lead the country this year and in 2013 in the pace of  growth in the resale housing market, according to a new forecast by the Canadian  Real Estate Association.

The national association of realtors said Monday that Alberta MLS sales this  year will finish up 13.1 per cent from last year to 60,800 transactions and  sales will lead the country next year as well with 1.3 per cent growth to  61,600.

Need  mortgage, need a PRO: MortgagePRO

The Real Estate Investment Network in Canada is “hot” on Calgary’s potential  and has ranked it the top investment city in Canada for 2013 to 2016, said  Melanie Reuter, director of research for the organization.

“This ranking came as a result of extensive research into the underlying  economic fundamentals driving Calgary’s economy as well as the current housing  market’s response to these fundamentals,” she said. “The job market is strong  and is poised to lead the country in job and population growth. Immigration from  other parts of Canada as well as abroad is putting a steep downward pressure on  vacancy rates and a strong upward movement on rents. This pressure is not  predicted to ease significantly in the coming years.

“The high average-weekly-earnings in the city mean more disposable income in  this PST-free province, which is creating a country leading consumer confidence  level. This is creating further stimulation of the economy through consumer  spending, which in turn brings increased employers, people, and demand for  housing.”

On Monday, CREA said the average sale price in Alberta is expected to rise by  2.7 per cent this year to $363,100 and by another 2.3 per cent in 2013 to  $371,300.

In November, Calgary MLS sales of 1,831 were up 10.6 per cent compared with  last year while on the national level sales dipped by 11.9 per cent to  30,573.

The average sale price in Calgary rose by 3.8 per cent to $413,921 but fell  by 0.8 per cent across the country to $356,687.

In Alberta, sales increased by 3.2 per cent to 4,034 transactions and the  average price was up 4.3 per cent to $365,999.

“National sales activity has remained fairly steady at lower levels since  mortgage rules were changed earlier this year, but that stability masks some  real differences in trends among local housing markets,” said Wayne Moen, CREA’s  president.

CREA on Monday also released its MLS Home Price Index of seven major Canadian  markets. Regina’s annual price growth of 11.58 per cent led the nation followed  by Calgary at 7.13 per cent.

Investors alert: with 10% downpayment you can buy as many income properties as many you want. Find out how we get you low interest mortgages to invest.

Read more:  http://www.calgaryherald.com/homes/Alberta+resale+housing+market+tops+Canada+annual+sales+growth/7708791/story.html#ixzz2FXVX1zpi

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.

Why Calgary’s homes are the most affordable in Canada

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The article at the Calgary Herald  about;

CALGARY — The Calgary-area housing market remains one of the most affordable  in Canada, according to a report released today by RBC Economics Research.

The latest Housing Trends and Affordability Report said the local market has  enjoyed the best of all worlds recently: stronger home resales and home  building, moderately rising prices, and attractive and improving  affordability.

MortgagePRO provides the best mortgages custom fitted to your needs and your circumstances, even if you have issues like, credit, age, job and you are new to Canada, self employed etc. We deal with issues like no others.