Do you want to make a real estate investment and worried about the myths concerning them? Whether you are new to alternative investments or have previously invested in them, you have undoubtedly come through many of its advantages and disadvantages, some of them may not be true. Since investments comes with complexities and risks to some extent, it is important for investors to consider the intricacies related to mortgage and real estate investments before deciding to invest in one.
In this blog, we are debunking some common myths regarding alternative real estate investments, like mortgage pool investments to help eligible investors in making the right decision.
- Myth 1: All alternative investments are same.
The term “alternative investments” refers to a wider spectrum of investments that cover assets rather than just funding the borrowers. The most common alternative investments include Real Estate Investment Trusts (REITs) and Private Mortgage Investment Corporations (MICs). All investments are different with varying eligible criteria and potential returns. The Canadian Securities Administrators (CSA) describes alternative investments as one of the most complicated types of investments that are quite diverse and in no ways similar to each other.
- Myth 2: Alternative investments are for wealthy investors.
The truth is that alternative investments provide a wide range of investment opportunities, each of which can appeal to a different type of investor and covers all income levels. Alternative investments are often available to investors who meet certain criteria, but they are not limited to the wealthy ones.
- Myth 3: Alternative investments add significant risk to your portfolio.
The level of risk varies according to the type of investment an investor invests in. According to Canadian Security Administrators, alternative investments may involve higher-than-average risks in exchange for higher-than-average return possibilities, and are designed for individuals who can afford to take on more risk or pay for expert counseling.
Conclusion
Alternative investments, such as non-publicly traded MICs, provide a profitable investment opportunity for eligible investors and are an excellent example of an alternative investment that allows participating indirectly in the mortgage lending market.
If you are looking for a reliable mortgage investment corporation in Abbotsford to put in your dollars in a mortgage pool, rely on none other than Versa Platinum. We are a trusted mortgage investment company assisting potential investors in investing risk free and diversifying their portfolio with a mortgage investment. For more details, give us a call today.
