INVESTING IN MORTGAGES
One of the most stable, safe, and lucrative ways to invest in real estate is in “mortgages”. Investing in mortgages is quickly becoming popular among smart and savvy real estate investors.
Essentially, you can “be” the bank by lending your funds to others, those loans are then backed by real estate as collateral.
There are two ways you can invest in mortgages:
1. Direct Lending:
Direct Lending is when one person provides a mortgage to one borrower. It could be a first, second, or third mortgage. For example, when someone already owns a house or property and needs additional funds to renovate it or to consolidate high-interest credit cards debt, this person could seek out a second mortgage.
The borrower is matched with an investor to take out a second mortgage, which is secured by the property.
Typically, second mortgages are designed to be “short-term loans” and are open for repayment by the borrower at any time. Once the first mortgage provided by the bank is up for renewal, it is refinanced and the second mortgage is completely paid off.
2. Syndicated Financing
Syndicated Financing involves a group of investors pooling their funds together to invest in a mortgage on a larger project.
A good example of such a loan could be a new construction project where the builder needs funds for “soft costs” – marketing, sales, etc. Once the project is completed and newly built units are sold, the lenders are paid out.
One big advantage of investing in mortgages is that people can use their registered funds for lending. Like investing in mutual funds, stocks, or GICs, holding mortgages in a registered portfolio is allowed by the Canadian Government. This means that investors can use registered pension or education plans as well as Tax Free Saving Accounts for that purpose – deferring the income tax payments.


Testimonials
I really like that precise, clear and professional attitude, both Michael and Rony have. I like the projects these guys are managing and definitely hope for more collaboration in the future. Keep up the good work!
I have invested a few times in Real Estate together with Michael. I can say with confidence that Michael has a vast knowledge in real estate, he is dedicated, passionate and very patient. He explains the market, the opportu-nity and the risks. I am in good hands when investing with Michael. High standard of professional know-how, integrity and strategic thinking are all part of his tool set. Highly recommended!
I’ve invested with Michael in several projects. I’m very impressed with Michael’s professionalism and knowledge in Real Estate Invest-ments. Looking forward for next project.
Michael has been great to work with. Very helpful and informative. Looking forward to participating in many more projects with CFP Group in the future!
I recommend Michael to anyone looking into investing in real estate. Prior to meeting him, all we knew about real estate investing was buy-to-rent, his knowledge and experience were eye opening, we are truly impressed with his approach.
Michael is friendly, professional and a warm person. He helped me with my first real estate investment all the steps of the way, making advice and answering all my questions. I have known Michael for more than 30 years and absolutely trust him. If you are looking to invest in real estate look no further.