Private mortgage investing has become a hot topic of late as real estate gurus look to this vehicle as a means to park their cash. But is it suitable for your investment goals? Sean M.Greene from Platinum Investment Real Estate Group offers an insight into the market.
Video transcript below:
Reporter: Alternative Investment vehicles are a hot topic with promises of hard returns. Private mortgage investing is the top choice for many. But is it right for you and what does it involve? Shawn Greene from Platinum Investment Real Estate Group outlines the opportunities and obstacles investors can face with private mortgage investing.
Shawn Greene, Owner, Platinum Investment Group
Shawn Greene: Some of the obstacles or potential downfalls of mortgage investing that have seen especially in the past couple of years as mortgage investments have become much more popular is again comes down to education. I think there is a big misconception or misbelief out there with the General Investors that simply by being involved in the real estate, whether that’s owning real estate planning or having a mortgage on a piece of real estate, that automatically is tangible, therefore it’s got to be secure. Real estate is secure, everyone knows it, it keeps going up and up and up. So I think there is a big possibility or there is a big tendency for investors to get into mortgages that probably aren’t as safe or secure as they may believe them to be.
Reporter: Private mortgage investing sounds good on paper, but is it for everyone?
Shawn Greene: I think as an investor you need to understand where your knowledge base lies, how experienced you are and whether you may be better off having somebody manage that for you, is a big question that I think every investor needs to ask themselves and understand. Once that question has been answered there are many companies out there that can manage your RSPs directly through your own RSP account that you are in total control of and still offer you great returns, but again while taking away all of the day to day management, some of the risk and allowing the professional analysis of these mortgage opportunities to be done for you so that it can invest and feel confident that you have got yourself into a good Private Mortgage Investment.