How to Invest in the Secondary Mortgage Business
Many private money investors are willing to loan money for secondary mortgages, as long as the mortgage is secured to the property. Make a safe investment in the secondary mortgage business with help from a financial specialist in this free video on mortgage assistance and personal finance.
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Hi, my name is Matt McKillen. I'm with Innovative Financial Group. The question posed to me today is, How do you invest in the secondary mortgage business or market? There's a lot of investors out there that may be sitting on a lot of cash. A lot of people have been taking their money out of stock markets due to the decline in value of stocks in the last few months we've seen. And real estate is still a sound investment. So what I've been seeing quite a bit lately is that there's a lot of private individuals that may only be getting a two or three percent return on their money on a CD or their savings accounts and now they're starting to get in to the secondary lending department. Now what that basically means is that, let's say I have a mortgage rate a thousand dollars with the bank and I just need a quick ten thousand or fifteen thousand to do some home improvements. There's a lot of private money investors out there that would just be glad to lend me that ten or fifteen thousand on a personal basis, secure the mortgage to the property and generally getting an interest rate of anywhere probably from about six to ten percent, eleven percent depending on their credit score. So, it's a safe investment because if the borrower does not repay the loan, they can still foreclose just like a first mortgage to get their money back. And generally their getting at least double if not triple the return on their interest that they would get if it was sitting in a CD. Again, my name is Matt McKillen. I'm with Innovative Financial Group.