For Investment Opportunity in Mortgage Lending Business Please Call Amit 647-622-6564
Investors Needed for 2nd Mortgages
We are looking for people who want to invest their money in second mortgages and earn 8% to 14 % interest rates on their investment on monthly basis.
How 2nd Mortgage works?
Since mortgage rules are tight by government to control housing market, people are unable to cash on their home equity through banks due to many terms and conditions. There are many people who are looking for money from their home equity. This is a great opportunity to earn good interest by lending your money to people who wants to borrow.
Second Mortgage charges and how it works?
For example if a lender is lending $10,000 for 1 year
He will make $300 as an Initial Lender fees for the first month plus depending on the interest rate he will get $140 every month as an Income on monthly basis paid through postdated cheques for each month for 12 months.
So in nut shell
Your $10,000 Investment returns approx. $1980 a year
A 19.8% return on your investment approx.
(This is for illustrations only and is not a guaranteed income; every case has to be analyzed before making an investment)
How is your Investment Safe?
When an investor is lending money to people I, as mortgage professional, make sure that they have enough equity in their home and we put your name as a lean on their home tittle as lender. In case if they do not return money or are unable to return due to any circumstances after agreed maturity date you have the right for Power of Sale for that property and recover your investment.
I suggest to my clients don’t go above 90% of home equity so that my investors’ money is safe. As an investor with me my first priority is to make sure my investors’ money is safe. I do my business with ethics and with conscious soul. I do have my responsibility towards my clients that they do not borrow more than they can afford. So I have to keep the balance intact to protect both sides the lender and the borrower. Charging unnecessary fees and levies from borrowers and overload the borrower or to rip them apart is not my way of business. We are here to help people stand and whatever the genuine money can be made that is affordable by borrower and the lender we only do that deal.
I am here to play it safe and not interested in a situation to force people for power of sale situations.
How to Make Money?
When a lender lends his money to the borrower there is a lender fees which is about 3% that I pay to the investor plus a monthly 10% to 14% Interest Rate that is earned on his /her investment. It is paid monthly for the period of 1 year extendable to 2 years depending on lender’s approval.
After 2 years the borrower needs to pay back the original principle amount to the lender. This is where I come in picture again. I get the borrower’s property refinanced from big financial institution and lenders and get your principle amount secured and paid back to you. So you as a lender can lend it to another borrower if you want.
Who Can Invest?
Anyone who has money and wants to make money with money or wants to generate interest from his money can be a lender. If you have an amount sitting in your bank account generating no income or very low income then this is the best way to generate income from your money.
How Much Investment Is Needed?
Any amount starting from $10,000 onwards can be invested.
What is the Risk?
There is no business that is risk proof. Same is here; some risk has to be taken into account, like was the value accurate? Is the client legitimate and not a fraud? Is he the legal title owner of the home?
To cover all these risks I involve trustworthy Lawyers and Appraisers to minimize our risk levels.
As I said I have to protect my investors first and clients, I am not here to make quick bucks and risk people’s money.
Disclaimer: (All & every circumstance and risk factors have to be analyzed by every individual before making any commitments, every individual or investor has his/her own capabilities of taking risk. We suggest please analyze your risk factors before commitment. I strongly do not suggest people to invest with borrowed money for 2nd Mortgages)
Why People Borrow Second Mortgage?
People who have their mortgage locked with 5 years interest rates do have an home equity locked in their home and they cannot refinance because their renewal date is way too far and bank charges heavy fees to break that mortgage, some times in excess to $30000 – $40000 to break the mortgage. It is not the best way of doing things because even if they do the majority of the equity will be eaten by bank in penalties and fees.
So it’s in their best interest to get the 2nd Mortgage for the time till their renewal date is close and refinance once that date arrives.
Plus there are many other scenarios like
- Unexpected situations
- Unavoidable circumstances
- Low Credit and Can’t Get Finance
- Short of Down Payment
- Closing date approaching Fast etc.
Who Pays the Lawyer Fees, Appraisal Costs and Broker Fees?
The Borrower pays the Lawyer fess, Appraisal Cost and the brokers fees is also paid by the borrower as a Broker fees.
What is the process?
- A face to face meeting is needed where we can sit and discuss the opportunity.
- As an individual we need to meet each other and see if we can work together.
- Once we believe we can work and basic trust and principle of both parties are established further discussions will go in details regarding how the process, works and what is the safety of money for you as a lender?
- How money can be made? What amount of money can be made? and what are the principles of industry?
- After that if lender likes the idea further client details will be provided and further details will be discussed from there on wards.