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Investing in Private Mortgages - What You Should Know
Investing in Private Mortgages - What You Should Know
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Investing in Private Mortgages - What You Should Know


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For safe real estate mortgage investment tips please visit:

For safe real estate mortgage investment tips please visit:

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  • 1. ==== ====For more tips on Safe Mortgage Investing go ====Investing in private mortgages is a great way to safely invest your money and get more interestthan you would from CDs and money market savings accounts. Private mortgage investing is amarket that has been around for decades. Since the mortgage crisis a few years ago, this industryhas been exploding and is a great place to put your money when you need a solid investment.You do have to be smart and savvy when you are dealing with these types of investments, ofcourse, because they can go wrong just like any investment can if it is not done properly.Investing in private mortgages means that you directly loan someone money for their homepurchase at a specific interest rate for a specific amount of time. Essentially, you become a lenderin the eyes of the mortgage holder, and they are held to the same standards of payment andownership with you as they would with a traditional bank or lender. Of course, before you dive intoinvesting in private mortgages, there are some important things to know.-When it comes to private mortgages, you need to make sure that you have a high loan-to-valueratio or LTV. This is the amount of the loan compared to the value of a property that you areinvesting in. For example, if you invest in a property worth $250,000 and your investment (loan) isfor $175,000, you have a 70% LTV, which is great. Anything above 90% is going to be risky, andmediocre investments will fall between 80 and 90 percent.-Think about the ability of the borrower to pay the loan. By looking at the credit history, financialresources, and track record of previous deals, you will be easily able to see whether yourinvestment is sound because of the history a person has and their ability to meet the terms of theagreement that you have set forth.Investing in private mortgages is a very effective tool for people looking for something that is morediversified and offers them a chance to make a profit while helping others. Private mortgagelending offers better opportunities than many investment options available today, and is muchsafer than stocks and markets with the same relative profits. However, being involved in privateinvestments like this is not for everyone so you should do your homework before you decidewhether this is the ideal investment for you.For more information on investing in investment opportunities usually or normally not found in themarketplace, click here!Sean Johnson is an Investment Advisor for an Investment Referral Servicefor investors requesting information on specific investments.
  • 2. Article Source: ====For more tips on Safe Mortgage Investing go ====