Investing in Mortgages
Given the volatility in the stock market and low returns experienced with fixed income instruments, many investors are seeking alternative investments that provide an attractive rate of return with an acceptable level of risk. When investing in mortgages you are investing in brick and mortar properties where the real estate represents the security for the investment. Casb Management Group Inc., actively supports mortgage financing as an alternative investment. We will assist you in finding the appropriate investment to match your risk tolerance. There are several ways you can participate:
- Holding a private mortgage directly. Not unlike a bank you simply hold a mortgage in first or second position on a residential or investment property. Your name appears on the mortgage document either directly or in trust if you want to hold the mortgage within an investment shelter such as a TSFA or RRSP.
- Syndicated mortgages. A syndicated mortgage is simply two or more individuals combining to hold a mortgage. The benefit of syndication is your ability to participate in much larger properties where your resources are pooled with other individuals. Typically a minimum investment of $25,000 is required to participate in a syndicated mortgage.
- Private Mortgage Investment Corporations (MIC). An alternative to investing directly in one property, participating in a MIC involves purchasing shares in a company that pools resources and spreads your investment over a number of properties.
- Publicly traded corporations including Real Estate Investment Trusts (REITs). Bought and sold on the stock market similar to other stocks or funds. You purchase shares in these investments and the company in turn holds a portfolio of properties or mortgages based on their investment strategy.
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