Top Five Things To Look For When Investing In A Private Mortgage
If you’re looking at investing in a private mortgage, but don’t know where to look or what to look for, here are some guidelines to follow. There are many avenues to fund private mortgages; however many are DIY mortgages and rely heavily on the investor understanding the risk, the pitfalls and the protocols in servicing, administering, discharging, enforcing and foreclosing on these mortgages.
So, if you’re considering working with an expert, here’s a list of the top five things to look for when investing in a private mortgage.
Always look for a mortgage broker fully licensed by the RECA (Real Estate Council of Alberta). With a licensed broker, you can reduce the chances of disputes and fraudulent activities. Moreover, you will have a higher chance of getting what you want.
2. Proven track record
Find a brokerage with a track record that shows both the good and bad side of their business. This is essential as it is easy to show great returns in a booming market, but you need to know how they can help even when the market is down. Similarly, you need to know how successful they are at helping their clients get what they want
Ask for references! A truly professional and trustworthy mortgage broker and lender would be more than happy to have you speak to their past clients. When speaking to these references, ask them about their experience with the broker and if their needs were fulfilled.
4. Physical presence
Make sure to look for a physical presence. Without a physical office or storefront, it becomes very difficult to reach a professional if you have questions or concerns. Also, a physical presence shows stability and reliability.
5. Trust account
Do they have a trust account? Do they have that trust account audited? What level of professional paperwork and documentation do they have? The more information provided to the investor, the more likely the lender is on top of the issues that may arise.
If you’re looking for private mortgage lenders in Sherwood Park, Alberta, reach out to Magnum Mortgage Corp. We are a one-stop-shop for all your mortgage investing needs. We have been serving clients for more than eighteen years as a fully functioning and operational mortgage brokerage. Our services are available to clients across Sherwood Park, Edmonton, Strathcona County, St. Albert, Sturgeon County, Spruce Grove, Fort Saskatchewan, Parkland County, Leduc County, Red Deer, Beaumont, Camrose, and the surrounding areas.