Mortgage Investment

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Mortgage Investment

Our investment funds work by funneling a pool of capital into multiple mortgages. Working with commercial or multi-residential properties, we target high population urban centers and surrounding areas.

Our investment funds funnel various pool of capital in different multiple mortgages. We prefer working with commercial and residential properties. We target high population areas with modern facilities for investments.

While doing the market research we consider the market conditions, borrower’s qualification and the property value. We always make sure to do thorough research and reach to an agreement before collecting the funds while investing. We also offer bad credit mortgage. We maintain a strategic approach while diversifying portfolio. We offer high returns on investment and tax saving.

For many years, mortgages would have one dimension as a tool used by those looking to buy a home. After finding out how much someone could afford per month in terms of payments, the company would offer an amount which could then be used to pay for a house. Normally lasting 25 years, monthly payments would continue over this time and interest would be added on top. However, this has all changed and the term is used for a variety of different tasks.

For example, a reverse mortgage is a scheme for those over 62 who can take out a loan using their built-up home equity. As another example, mortgage investment has increased in popularity in recent times and this is what we are focusing on here.

What Is It?

When we use the term ‘investment’, we think of the traditional channels such as equity and the different products that are available nowadays. However, we also have mortgage and real estate investments that offer something completely different. In many cases, they are actually more reliable and offer as good a return as any other investment opportunity you may find.

Without being bogged down by the details and information required for success with mutual funds, bonds, and stocks, mortgage investments are actually more secure than these three examples too. As long as you find the right company, you will be well looked after and your risk should be spread in an efficient manner all the way through your portfolio.

Mortgage Investment Corporations (MICs)

If you have done some research on this topic, you will have heard this term already and it essentially describes the businesses that allow people to invest. Created under the Income Tax Act, there is a pool of various types of mortgages and anyone can invest into this. Over time, you would become a shareholder (in effect) which means that you will receive a percentage of the returns. At this point, we should note that MICs will normally disperse 100% of its income each and every year.

 


Why Choose Mortgage Investment?

With all of this in mind, you might be wondering why you haven’t heard of mortgage investing before. Furthermore, you might suggest that other options are ‘better’ so we should assess the features of mortgage investing so you can compare them with your needs and your plan for the future.

Security

Compared to other forms of investment, it’s fair to say that mortgage investments are a more secure form of income because they are protected - mortgages are finely tuned financial packages that have repercussions when the owner fails to pay. Ultimately, there are a number of steps in place that will keep your investment safe. Rather than choosing anyone, mortgages are also carefully laid out plans where borrowers need to provide guarantees which is important to remember.

High Returns

In comparison once again, we could confidently say that the returns are higher with mortgage investments than bonds (on average). As we have already discovered, the majority of companies will share out their revenue to every single investor so there will always be a return as long as there is revenue to be made. Assuming that you choose the right company and pay attention to this pivotal step, you will join an extensive network of people who already invest and use the tool to increase their portfolio.

Remove Fluctuations

Finally, investing in stocks and bonds is always a risky process because the market will adjust within days, hours, and sometimes even minutes. With this in mind, you need true experts to look after your money and be looking out for the movements at all times. Not only do you lose more money in fees, there is a chance that a huge, surprising adjustment loses everybody’s money at the same time.

Once you choose a fantastic representative of the mortgage investments market, your money will be secure and will not be prone to volatility within the market itself. For many people, this is an important feature to mortgage investments and why it has been gaining a good amount of attention in very little time.

Of course, we wouldn't be providing a full service if we didn't explain the drawbacks to such an investment. First and foremost, you should be able to tell from the word ‘investment’ that there will always be a risk involved and that’s just the way it works. Regardless of what investment type you choose, risk is just a feature that you must endure. For mortgage investing, the risk comes from the potential of bankruptcy of the company if they see an excessive amount of defaults on mortgage payments.

However, this has been seen more in the US than in Canada which is some good news. In recent years, it seems as though Canada has been taking extra precautions to protect investors. Additionally, the risk is also managed better with this form of investment over any other.

Drawbacks

As a second drawback, we could also point out that choosing the wrong company would leave you in a poor position. Although, this isn't exactly a negative of the investment opportunity itself. Instead, it just suggests that you need to make the right decision and we highly suggest our services here at Benson Mortgages.

As you can see, mortgage investments are definitely a worthwhile consideration. With more security, higher returns, and the removal of volatility, you can clearly see why so many people are choosing to go down this route. If you need help, have any questions, or just need to talk to someone about the possibility of mortgage investments, please feel free to contact a professional at Benson Mortgages today!