Using My Self Directed RRSP Portfolio to Invest in Private Mortgages
Quite often real estate investors prefer to skip traditional mortgages and borrow money from private lenders. Skipping the government controlled and regulated lending options gives a borrower much more flexibility, they typically receive their funding much faster and there is little to no red tape to jump through. Perhaps best of all, the loan doesn’t affect their credit score.
Why would you want to invest in private mortgages?
Private mortgages are a great way to receive a high return on investment, typically much higher than what you’d receive in a standard mutual fund. They also provide significantly less risk than investing in the stock market – we’ve all read the headlines and hands shaking checked the status of our retirement account only to find that it has bottomed out. No matter what age you are this is a terrible experience, to lose all of that hard earned month. However as you approach retirement those pains are felt much more intensely. All the while you’re still paying the investment bankers their fees even though you’ve lost your money.
Private mortgages offer less risk because you’re secure in both the borrower and the value of the property. Typically the lending to value ratio is 50-70%. That means you only lend 50-70% of the value of the house.
Each monthly payment is like a fixed income payment. Each month you receive a check, or two or three depending on how many investments you make.
Finally, investing in private mortgages with your RRSP funds means when you withdraw the money upon retirement you’ll be paying significantly fewer taxes.
Think about what you’ll do with all that extra cash in your pocket. If you’re making monthly payments into your RRSP you can now keep that money for your monthly spending needs and use the income from your investments to fund your retirement.
Using your self directed RRSP portfolio to invest in private mortgages will be the best financial decision you ever make. Instead of assuming the risk, fees, and less than desirable return on investment that mutual funds, stocks and bonds offer you will receive a secure monthly fee at a much higher return on investment. All it takes is a little understanding about how to analyze opportunities and draft agreements which benefit your pocket book and help others achieve their real estate dreams.
For more information about how to use your self directed RRSP portfolio to invest in private mortgages visit http://www.rrspmortgageinvestor.com
Walter Monteiro.
Real Estate Sales Representative and Mortgage Agent.
Cambridge Ontario.
Best Deposit Interest Rates
The best deposit interest rates are at 10% for two different types of accounts and financial institutions. But like most investments there are restrictions.
Shore Bank offers 10.00% APY on their grand slam checking account with balances from $ 0.01 to $ 1000. The big catch here is you must live in an eligible county in either Maryland or Virginia.
Affinity Bank also has an account that has a 10.00% APY on a savings account for minors. The restrictions here are that you must a California resident and the balance must be under $ 500.
Patelco Credit Union has a savings account that has an 8.00% APY for its members that live in the San Francisco area and are under the age of 21. This rate is only good for a balance of $ 1000 or less. This credit union also has a 1 year CD for new members in the San Francisco area which has a 7.00% APY but is only for $ 1000.
Montgomery Bank offers 7.01% APY on their kids club savings account for children under the age of 12 and is only good for the first $ 500.
Boeing Employee Credit Union offers a savings with member’s advantage and early savers accounts for balances up to $ 500 that has an APY of 6.17%. This is available for all residents and students in the state of Washington as well as former and present employees of Boeing Aircraft Corporation.
There is Alliance Bank with their Freedom Checking rewards checking account that has an APY of 5.00% with restrictions. The restrictions include that there must be one ATM transaction per month, use internet banking, receive their statement online and make 10 debit card transactions per cycle.
There are great deals out there if you are lucky enough to live in the right place.
The best deposit interest rates give a great return but watch out for the restrictions.
If you don’t meet the qualifications for these bank account, check out this site for the best CD rates. If you are specifically looking for more information concerning best deposit interest rates, check out that article for deals available nationwide.
