Lots of investors hear about the opportunity at the ready for them through private mortgage investing, but they don’t seize it because they think that this type of investing requires a certain skill. They believe that there’s all types of training involving, and that they must know all the ins and outs of mortgages. In short, they think that to be a private investor you also need to be a mortgage broker. But that’s not true. Here we break down the three biggest myths revolving around the requirements for a private mortgage investor, to show you how you can do it too.
Private investors must know all regulations and securities laws
While it may not be a bad idea to familiarize yourself with the laws surrounding any type of investment you’re going to make, you certainly don’t need to when investing in private mortgages. Align yourself with a great mortgage broker who has these laws on the tip of their tongue at all time and you’ll automatically have an invaluable resource pertaining to the laws and regulations around mortgages.
Private investors need to have vast knowledge surrounding mortgages and their investment
Again, you’ll probably want to educate yourself as much as possible. It is your money after all, and you want to know what’s happening to it. But again, a good mortgage broker will know everything you need to know about the mortgage or mortgages, and they’ll gladly pass that knowledge onto you. If you’re a savvy experienced investor you can choose to be fully involved with all mortgages you invest in and hand pick them to your liking. If you’re not as experienced you can choose to leave those things to your mortgage broker and just sit back and wait for interest returns.
Private investors need to have a lot of cash
Well, this one is partly true. You do need to have a fair bit of investment money in order to invest in private mortgages. You are after all, lending the money that covers an entire mortgage. But there is no minimum investment involved with private mortgage investing. You can choose to invest in $300,000 mortgages, or $3 million mortgages. The choice is yours to make, depending on the return you want to receive and the capability of your portfolio.
Being a private mortgage investor is much easier than many think. The only real requirement placed upon you is to have cash that can work for you, and to ensure there’s a great mortgage broker working on your behalf to find you only the best deals.
