Investors

Investing in Mortgages

1. Your Investment will be secured against Real Estate. There is a margin of safety with Real Estate.
1St Mortgages, we usually lend up to 75% of Appraised Value, and 2nd Mortgages up to 85% of Appraised Value.
2. You receive steady return on your investment. The borrower will provide you with 12 monthly cheques.
3. Your Investment is typically 1 Year Term. You can choose to renew the mortgage again or cash in your investment.
4. The Borrower is always responsible for setting up a mortgage.
5. Typically you can expect 8-10% return on your money with 1st Mortgages, and 12-14% return on your money with 2nd Mortgages.
6. You should have between $100,000 to $500,000 to invest in 1st Mortgages.
You should have between $30,000 to $200,000 for a typical 2nd Mortgage investment.

Compared to:

Stock Market

- Volatile and you have to watch the market or pay someone to advise you.

GIC's

- Safe but low returns.

Canada Savings Bonds

- Safe but low returns.

Syndicated Mortgages

-Typically longer terms 2 to 4 years
- You are in 2nd position and this could change.
- More difficult to cash in your investment.