Private Mortgage Support
“Private Mortgage Investing And Lending Success Driven In Part By Mortgage Broker Support”
If you’re going to be a private mortgager lender or investor, then you need to strongly consider developing a working relationship with a strong mortgage broker that works with private mortgages in your area.
There are a number of reasons why I think this is important, but let me boil this down to what I would consider to be the top three reasons.
So let’s get into the first reason which comes right at the start of the lending process, and that’s deal flow or lead flow.
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If you’re a private lender, when you have money to invest in mortgages, you want to be able to find a mortgage that meets your criteria rather quickly and get your money back out into the market earning a return. A lack of deal flow will cause you to have to sit on funds for longer periods of time that you would like, earning no more than bank interest in many cases.
The second aspect of good deal flow is that you want to be able to find deals that best fit your criteria versus settling for deals that you’re not completely comfortable with because deal flow is rather scarce. A good broker relationship should afford you with the deal volume to not only place your money quickly, but also place funds into deals that properly fit your lending criteria.
Proper Deal and Risk Assessment
After deal flow, the next big reason for working with an experienced broker is deal and risk assessment. And experienced broker has learned over time what to look for and how to unearth all the warts and blemishes related to a private mortgage deal. He or she also knows and understands the importance of full disclosure to the lender and works hard to make sure that you have all the relevant information in hand to properly understand the deal and assess the risk of funding it.
Brokers who do not work regularly on private deals are less likely to provide the deal assessment support you are looking for which will in turn end up providing limited value to your own assessment process.
And in the cases where a private lender looses money on a mortgage, you can point back to flaws in the assessment process that were not uncovered or properly scrutinized.
Private Mortgage Closing Skills
The last key reason for utilizing the skill set of a private mortgage broker is to increase the closing rate on deals you provide funding offers for.
Once you assess a deal and provide funding terms, there is no guarantee that the deal will close. In fact, many times deals will fall apart by a lack of proper coordination of all the closing elements such as appraisals, legal, insurance, accounting, etc.
A competent mortgage broker will be well versed in the closing process and have the skill set necessary to get everything completed in the time required by both borrower and lender.
Getting this additional help can certainly lead to more profitable private mortgage portfolios and should really be a strong consideration by any private mortgage investor or lender.
Click Here To Speak Directly To Toronto Private Mortgage Broker Joe Walsh