Lending and Investing in Private Mortgages
Real estate debt investing presents an alternative asset class that can protect and build wealth.
Three traditional reasons for investing in private mortgages include:
1. Portfolio diversification
2. Accessing premium and generally secure income yeilds
3. Potential for attractive total returns that should be protected from inflation
(Source: Stanyer, P. 2006)
Lending a private mortgage at a comfortable loan to value presents an investor with the benefit of earning a fixed stream of income from real estate with limited exposure to real estate equity.
There are opportunities to lend private mortgages from a wide spectrum, including residential / commercial, urban / rural, in-construction / completed.
Investing in a private mortgage is an RRSP eligible investment.