When it comes to real estate, there are a lot of options for making money. Traditionally, purchasing property and living in your home while it increased in value was the most common method of real estate investing. However, in the past few generations, real estate has opened up a wealth of opportunities for investors.
One of these methods is investing through a Mortgage Investment Corporation (MIC) like Cooper Pacific, but there are other options, such as:
Some of these options can have significant payoffs, but they also carry an increased risk for the individual involved. Private mortgages, in particular, can be significantly risky.
This is where MICs come in. An MIC is a perfect way to invest in the real estate market that mitigates the risks associated with private mortgages, flipping projects, or dealing with tenants.
Here are some of the main reasons why investing in an MIC may be better for you than a private mortgage:
The primary benefit we’ve already touched on. Private mortgages carry more substantial risks. With an MIC, this risk is diminished. Your investment is pooled into numerous projects, thus diversifying within a mortgage pool.
A Mortgage Investment Corporation is just that — a corporation. Better yet, it’s a team of professionals dedicated to the fund and experienced in mortgage investment. This not only lessens risks but also offers you more knowledge and access to a variety of real estate projects to diversify your investment.
An MIC handles administrative duties, payment collection, and the research needed to decide which projects are the best investments. All this work is done for you with an MIC. A report is provided to keep you informed of how your investment is performing.
When you own an investment property or invest in a private mortgage on your own, there’s less liquidity. Should you need your investment capital back, you have to sell the property or wait for the borrower to pay you out, which can take time. MICs have retraction policies within their Shareholder Agreements, allowing for faster access to your investment capital.
When you buy an investment property, you run the risk of all the unexpected fees. Perhaps the wiring isn’t up to code, and now the initial renovation budget is out of whack. This means you’re on the hook as the property owner, or the borrower you invested in is going to come asking for more money.
At Cooper Pacific, we pride ourselves on offering quality alternative investments with reduced risks for investors. Our team of qualified and experienced investment managers are always working to ensure our strategies are performing their best so that our mortgage pools are the best option. If you’re looking for an alternative investment option in the real estate sector that mitigates the risks associated with property management, ownership, or private mortgage investing, get in touch with Jordan on our team today.
19 Sep, 2024
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Since 1994, Cooper Pacific Mortgage Investment Corporation has been helping communities and investors across Western Canada grow and prosper. As real estate experts, our goal is to offer investors outstanding mortgage investment opportunities with an attractive rate of return. We do this by offering short-term construction financing and interim mortgage funding to help builders and developers take projects from planning to completion.
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