 Almost all mortgages originate with a bank  or financial institution. In some cases  however, a private individual, a se...
 The main reason anyone turns to private  lenders is because of bad credit and/or  being turned down for a loan with a  b...
PROS: HIGHER INTEREST RATES ON INVESTMENT SHORT TERM INVESTMENT MORE LUCRATIVE THAN STOCKS/MUTUAL  FUNDS CREATIVE CHOI...
PROS: OPTION TO SELL THE MORTGAGE TO  COMPANIES IF YOU NEED TO EXIT INVEST SECURELY IN REAL ESTATE WITHOUT  HASSLE CONT...
PROS: SECURED- MORTGAGES IS REGISTERED  ON THE BORROWERS HOME REMEDIES AVAILABLE (POWER OF SALE/  FORECLOSURE)
CONS: RISK THAT PROPERTY VALUE MAY DECLINE  BASED ON THE ECONOMY RISK OF DEFAULT – DEALING WITH PEOPLE  WHO COULDNT GET ...
PROS: NO CREDIT CHECK NO QUESTIONS ABOUT WHAT THE FUNDS  ARE FOR QUICK CAN ALLEVIATE HIGH INTEREST DEBT FOR EMERGENCI...
CONS: ANOTHER MONTHLY PAYMENT HIGH INTEREST RATES SHORT TERM- HIGH RENEWAL FEES CAN END UP OWING MORE THAN  PROPERTY W...
EXAMPLE:   YOU HAVE A PROPERTY VALUED AT    $100,000.00, AND YOU LEND $70,000.00    FOR A ONE YEAR TERM. LENDER FEE OF   ...
   SEARCH PROPERTY WITH LAND REGISTRY    OFFICE TO CHECK FOR REGISTERED    MORTGAGES, LIENS.   SEARCH BORROWER WITH LAND...
 REGISTER THE MORTGAGE WITH THE LAND  REGISTRY OFFICE TO SECURE IT PROCESS THE FUNDS THROUGH A TRUST  ACCOUNT FORWARD T...
IN ASSOCIATION WITHIN   FLEET STREET LAW       126-20 CARLTON ST     TORONTO, ON M5B 2H5        TEL:416-546-7412WWW.FLEETS...
Private lending and Real Estate Law
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Private lending and Real Estate Law

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Qadira Jackson of Fleet Street Law speaks to First Fridays on private lending and real estate law.

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Private lending and Real Estate Law

  1. 1.  Almost all mortgages originate with a bank or financial institution. In some cases however, a private individual, a seller, or an investor may choose to hold a mortgage directly. This mortgage structure may bring several advantages to buyers, sellers, and third party investors. It is possible for anyone to offer a private mortgage, you dont have to be a bank, or even a real estate professional.
  2. 2.  The main reason anyone turns to private lenders is because of bad credit and/or being turned down for a loan with a bank. Private mortgages are often necessary for property zoned for farming, as conventional banks tend not to fund farm land.
  3. 3. PROS: HIGHER INTEREST RATES ON INVESTMENT SHORT TERM INVESTMENT MORE LUCRATIVE THAN STOCKS/MUTUAL FUNDS CREATIVE CHOICES/CONTROL OVER YOUR MONEY
  4. 4. PROS: OPTION TO SELL THE MORTGAGE TO COMPANIES IF YOU NEED TO EXIT INVEST SECURELY IN REAL ESTATE WITHOUT HASSLE CONTROL OVER LENGTH OF TIME YOUR MONEY WORKS FOR YOU
  5. 5. PROS: SECURED- MORTGAGES IS REGISTERED ON THE BORROWERS HOME REMEDIES AVAILABLE (POWER OF SALE/ FORECLOSURE)
  6. 6. CONS: RISK THAT PROPERTY VALUE MAY DECLINE BASED ON THE ECONOMY RISK OF DEFAULT – DEALING WITH PEOPLE WHO COULDNT GET CONVENTIONAL FUNDING MAY HAVE TO INITIATE POWER OF SALE MAY BE IN SECOND OR THIR PLACE
  7. 7. PROS: NO CREDIT CHECK NO QUESTIONS ABOUT WHAT THE FUNDS ARE FOR QUICK CAN ALLEVIATE HIGH INTEREST DEBT FOR EMERGENCIES (FUNERALS) HOME RENOVATIONS
  8. 8. CONS: ANOTHER MONTHLY PAYMENT HIGH INTEREST RATES SHORT TERM- HIGH RENEWAL FEES CAN END UP OWING MORE THAN PROPERTY WORTH REGISTERED ON PROPERTY- MUST BE PAID ON SALE REGARDLESS OF TERM
  9. 9. EXAMPLE: YOU HAVE A PROPERTY VALUED AT $100,000.00, AND YOU LEND $70,000.00 FOR A ONE YEAR TERM. LENDER FEE OF $5,000.00 AND INTEREST ONLY AT 15% PER ANNUM, ON A MONTHLY BASIS. YOU WOULD RECEIVE $875 EACH MONTH OF THE YEAR. TOTAL PROFIT OVER THE ONE YEAR TERM = $15,500.00 ($10,500.00 + $5,000)
  10. 10.  SEARCH PROPERTY WITH LAND REGISTRY OFFICE TO CHECK FOR REGISTERED MORTGAGES, LIENS. SEARCH BORROWER WITH LAND REGISTRY OFFICE TO ENSURE NO JUDGEMENTS AGAINST HIM/HER GO OVER THE TERMS AND RENEWAL TERMS IN DETAIL WITH THE LENDER & BORROWER. FORWARD BROKER FEES AND LENDER FEES COLLECT POST DATED CHEQUES FROM BORROWER FOR LENDER
  11. 11.  REGISTER THE MORTGAGE WITH THE LAND REGISTRY OFFICE TO SECURE IT PROCESS THE FUNDS THROUGH A TRUST ACCOUNT FORWARD THE FUNDS TO BORROWER ARRANGE TITLE INSURANCE TO PROTECT LENDER AGAINST TITLE DEFECTS/FRAUD DISCHARGE (REMOVE MORTGAGE FROM LAND REGISTRY OFFICE AND FORWARD PRINCIPLE TO LENDER
  12. 12. IN ASSOCIATION WITHIN FLEET STREET LAW 126-20 CARLTON ST TORONTO, ON M5B 2H5 TEL:416-546-7412WWW.FLEETSTREETLAW.COM
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