{"id":723,"date":"2013-03-21T19:43:42","date_gmt":"2013-03-21T23:43:42","guid":{"rendered":"http:\/\/www.staging.canadianlending.ca\/?p=723"},"modified":"2023-05-17T16:09:44","modified_gmt":"2023-05-17T20:09:44","slug":"how-long-of-a-haul-is-investing-in-private-mortgages","status":"publish","type":"post","link":"https:\/\/staging.canadianlending.ca\/investors\/how-long-of-a-haul-is-investing-in-private-mortgages\/","title":{"rendered":"How Long of a Haul is Investing in Private Mortgages?"},"content":{"rendered":"

Investors want big returns on their investments, sure. But if they could be picky (and typically, \u00a0they can) they also want fairly large returns in a timely manner. This in fact is the very reason that some investors hesitate to put their money in private mortgages, because they don’t want to be waiting around the typical 15-25 years to see their full return. Even with small monthly or bi-monthly returns, investors still don’t see much opportunity in it. So,\u00a0is<\/em> that how long you’ll have to wait to get your investment back?<\/p>\n

Fortunately not.<\/p>\n

When you invest in a private mortgage, you will see returns on a month-to-month basis, or the time frame agreed upon by you and your broker. Those returns will, again depending, usually be anywhere from 6 per cent to 12 per cent every payment period. But that’s just the return you’ll get on your investment. When will you get that principal back?<\/p>\n

Usually, you can expect to get your principal back within one or two years, depending on the mortgage you invest in, and your own preferences. When a broker has set up the mortgage and you make the investment, the borrower will make a down payment on the mortgage, and most of that will be returned to you. That serves as your collateral, as well as of course, the property itself. That serves as your protection over the next year or so, and it will increase with every month as the borrower pays back a portion of that principle to you.<\/p>\n

While the protection of the investment is always nice to have, the chances are you won’t need it when you choose to invest in private mortgages. Investing in private mortgages is even easier, and even more risk-averse than investing in real estate itself. Forget about worrying over whether or not home values will drop; or trying to compare interest rates offered at banks so\u00a0you\u00a0<\/em>can get a mortgage to invest in real estate. Invest in mortgages, and with its simple set-up and fast profitable returns, it will be one of the easiest, and best, things you’ve ever done.<\/p>\n","protected":false},"excerpt":{"rendered":"

Investors want big returns on their investments, sure. But if they could be picky (and typically, \u00a0they can) they also want fairly large returns in a timely manner. This in fact is the very reason that some investors hesitate to put their money in private mortgages, because they don’t want to be waiting around the … <\/p>\n