For those with cash to invest in real estate there has never been a better time to let your money work for you instead of you working for your money. Private mortgage lending through investment property has become an increasingly popular choice for savvy individuals and groups who are seeking great returns and security for their capital, but what should you know before you jump in?
As with any other way of profiting from investment property there are many options and companies that may be vying for your business. Some offer huge returns and slick presentations, but you must be careful about who you choose to invest with. Like anything else with high returns you will also likely find higher risks. You should be able to find investment property specialists that can provide you with stable 6-12% returns on your money, though anything much higher than that in the current market may be a red flag that they are over promising.
Look beyond fancy fliers and slick power point presentations and take a look at the company who will be handling your investment.
- How long have they been in business?
- Do they have a proven track record readily available to show you?
- How is their reputation within the community you are looking to invest in?
Do they offer premium investment property
choices even in the recent housing market? Despite the best intentions of some, they simply do not have the experience or reserves to provide you the protection you need when things don’t go as planned. Are you going to be providing private mortgage funds for investment property to a small start up who will take the money and run at the first sign of trouble, or do they have they strength and commitment to do everything in their power to ensure your success?