What is private mortgage investing?

What is private mortgage investing?

Private mortgage investing is simply investing in loans secured by real estate. Most private mortgage investments are relatively short term loans (maturity under five years, with many loans two years or less) made to professional real estate investors.

Banks are unwilling to make real estate loans unless they fit a very strict set of criteria.

The banks often do not want to lend to opportunistic real estate investors because the property which is security for the loan is not “move-in ready” at the time of loan funding - they may need work.

For this reason, real estate investors have limited financing options available to them, and lenders to this market are able to command relatively high interest rates. 

Contact Ralph Abbott with your questions on private mortgage investing at [email protected] or 614-339-4255 ext 2.

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