Want to become a mortgage investor but don’t know how to get started with a mortgage investment? One of the best ways to earn consistent income with minimum risks is investing in mortgage pool formulated by a reputed Mortgage Investment Corporation (MIC) in British Columbia.
You most certainly encountered the phrase Mortgage investing Corporation (MIC) early in your search for alternative investing possibilities. In recent years, MICs have emerged as an important component of a number of investors’ wealth generation and preservation strategies.
With so many options to choose from, selecting the best MIC for mortgage investment is not that simple as requires a strategic approach which includes:
- Liquidity
Read the subscription agreement carefully to determine how quickly you can withdraw your deposit. Nobody likes to be in a situation where they need funds but have to wait a long time to withdraw their investment, and some MICs only allow redemptions once a year.
- Consistency
Request details on the actual ROI vs. target ROI over the last 5-10 years. This will give you an idea of how accurate the MIC is at forecasting ROI and whether it can routinely achieve or exceed goal ROIs. Though the interest rate changes and recommendations by the Bank of Canada rate have a direct impact on a MICs performance, it is still recommended to look into ROI trends when determining a MIC’s growth trajectory.
- Risk
Though major mortgage investments come with a risk factor, it is typically low with MICs. The current housing growth and the type of mortgages you can investing in a pool can make or break your risk factor. Whether urban or rural, first or second mortgage, make sure you dive deep into determining the interest rates and understand the possible risks connected with an investment. You should choose a MIC with a mediate level of risk to protect your investment.
- Reward
No matter how small or big your mortgage investment it, one of the major reasons you are investing in is to earn a potential high reward or savings. Before you choose an MIC in British Columbia to invest with, make sure you inquire about their rewards, as to when and how the dividends are distributed and how much you will probably earn.
Communication
Check to ensure that the MIC not only reports clearly and consistently, but also that they can handle ad hoc information requirements. You never know when you’ll need to have quick access to crucial investment information. Your potential MIC should have an investor relations manager available to answer questions, provide extra information, or assist you in understanding the product.
Want to know more about mortgage investments or planning to become a mortgage investor? Choose Versa Platinum’s mortgage investment corporation in Abbotsford, to make the right investment decision. For more details about investments and returns, give us a call today.
