Any kind of investment carries risks and you don’t want to make mistakes that leave you out of pocket. When investing in private mortgages, finding the right kind of investment that offers low risk and good returns takes experience and expertise. How can you know that you are putting your money where it will provide a sound return-on-investment?
If you have the confidence and industry connections, you can manage your own investments, but you’d have to do a lot of work yourself. By working with an experienced Investment Manager (or Mortgage Manager) you will have someone on your team to help you get the most out of your investments. Here we’ll touch on some of the reasons working with an investment manager is beneficial:
- Finding Investment Opportunities
An Investment Manager will constantly have investment opportunities coming across their desk which means they can save you the time and effort searching for relevant opportunities. A good investment manager will know what kind of investments you are interested in and be able to find you opportunities that are tailored to your investment specifications (e.g. risk profile, terms, return etc).
Earn Passive Income With Our Pooled Mortgage Fund
Quarterly distributions
Minimum investment from just $10K
No lock-in investment term
- Due Diligence
Once a relevant investment opportunity has been found, it also takes a long time to conduct the due diligence to ensure it’s a good investment. An investment manager will look at every aspect of the opportunity to make sure it is sound. They’ll do background checks, company history checks, title searches and financial checks. The investment manager will make sure this is all fine before bringing an opportunity to you.
- Managing the Investment
Once you’ve invested your money in a private mortgage you don’t want to have to worry about making sure the borrower returns the money on time. By working with an experienced Investment Manager, you can have peace of mind that they are managing the loan and making sure the money is repaid and you get your returns.
- Expertise
Working with investments is an Investment Manager’s full-time job so they’ll generally have a great deal of experience and know what a good opportunity is and what isn’t.
- Diversification
Working with an Investment Manager will allow you to diversify your portfolio across several loans rather than investing in only one loan at a time (you know what they say about too many eggs in one basket!) Note: this applies if you invest in a pooled mortgage fund or invest in multiple direct mortgages.
- Lower Minimum Investments
If you were investing in private mortgages yourself, you would generally have to provide an entire loan amount and therefore all your money would be tied up in one investment at one time. However, working with an Investment Manager allows you to invest smaller amounts of money, sometimes as little as $10,000, which is then diversified across a portfolio of loans.
- Regular Distributions
And the best thing about working with an Investment Manager is that you don’t have to hold your breath, wondering how your investment is going. Instead you can sit back, relax and wait for your quarterly distributions.
With everything taken care of and your Investment Manager on hand to answer your questions or discuss the progress of your portfolio, you can build your confidence while growing your funds.
If you have any questions about investing in private mortgages then please send us a message via our Contact Page.
