Private Mortgage Lending
- chrisallinson3
- 12 hours ago
- 1 min read
For some experienced investors, investing in a mortgage investment corporation isn’t enough. They want higher returns and are willing to take on more risk in exchange for potentially higher returns.
Nest often works with private lenders via licensed mortgage brokers.
Direct private lending involves an investor matching their available funds to a specific borrower.
The benefits include generally higher returns often ranging from 8% to 13%.
Some of the risks include if the borrower defaults, you bear the potential loss. Other considerations include you are responsible for paperwork review, mortgage file evaluations and collections.
Direct private lending is a strategy that requires a constant volume of private mortgages to evaluate from mortgage brokers. This strategy requires a higher level of knowledge, a matching amount of capital, reputable mortgage broker contacts and a strong understanding of real estate markets.
Some private lenders even use registered plans such as Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP).
If you are interested in investing, we will connect you with a registered exempt market dealer who can walk you through the investment process. Past performance is not intended to provide an indication of future performance.