Due to its rich and growing real estate market, Canada attracts a number of mortgage investors who want to grow their wealth and diversify their portfolio by investing in private mortgages and real estate. If you are a first time investor, understanding the investment process and ins and outs of the private mortgages may be intimidating.
There are a number of ways to invest in mortgages and real estate, depending on your ROI expectations, investment amount, and other factors. In this blog, we have discussed the best investment strategies for investors interested in putting their dollars in mortgage and real estate market in Canada.
1. Private Mortgage Investments
Investing in private mortgages gives investors the chance to fund borrowers who have been rejected a mortgage by the bank or might not be eligible for conventional bank loans. Investors have some security because these investments are backed by real estate assets.
Private mortgage consultants or mortgage pool advisors streamline the MIC investment in Abbotsford by carrying out thorough assessments of the property’s worth and the borrowers’ creditworthiness. This assists investors in identifying opportunities, reducing risks, and making well-informed decisions.
2. Buying and Holding
Acquiring properties with the goal of holding them for an extended period of time, earning rental income, and reaping the benefits of property appraisal are part of buying and holding real estate. Investors looking for steady cash flow and long-term growth should consider this investment strategy.
For individuals who plan to hold onto a home for more than five years while they wait for the right time to sell, buying and holding can offer a steady stream of passive income. However, this strategy may not be suitable for everyone.
3. Real Estate Investment Trusts (REITs)
Without actually owning any real estate, investors can participate in a diverse portfolio of real estate through Real Estate Investment Trusts (REITs). For income-oriented investors, real estate investment trusts are a perfect choice as these trusts usually provide dividends to shareholders, representing a sizeable amount of their revenue. In addition, compared to direct property ownership, REITs offer benefits for diversity and liquidity.
4. Joint Ventures
In a joint venture, investors pool their investments and resources on real estate projects. Joint ventures give investors access to bigger and more complicated opportunities by dividing the risks and profits. Clear communication, mutual trust, and a common understanding of the goals and expectations of the project are essential for joint venture success.
If you are planning to invest in real estate or mortgages, Versa Platinum is here to help you out. We are a leading Mortgage Investment Corporation (MIC) in Abbotsford, assisting eligible investors in diversifying their portfolio and earning consistent returns by investing in our private mortgage pool. For more details, give us a call today.
