Private Mortgage Lending Strategies

“What’s The Best Approach To Take When Considering Private Mortgage Lending Strategies?”

mortgage investing strategies

Often times when investors are considering private mortgage lending, they hesitate to get started due to a lack of defined strategy or focus are for placing private real estate loans and mortgages.

While there are a number of different strategies or approaches an investor or lender can take, I tend to recommend the most basic approach when getting started and that’s to focus on what you know.

This may sound too obvious or too simple, but when you think about it, most people will tend to gravitate towards what they know, regardless of what it is that they are working on.

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Recently I got a call from an investor who wanted to start putting money into private mortgages and he was himself a developer.

When we started talking about what types of deals he should be looking at, the conversation quickly came around to development because that’s where is knowledge and expertise lied, and that’s what he was most comfortable assessing.

Almost any investor has a knowledge and experience base to draw from that can relate to a private mortgage niche.

In the event that no true slice of the market can be identified, then the best starting point is to simply invest in residential home mortgages because at the end of the day, all investors with funds available for private mortgage financing will have experience with home ownership.

Residential real estate is the easiest type of private mortgage to assess and there are more opportunities to consider compared to all other private real estate lending opportunities combined.

So the sticking what you know private lending strategy is a great place to start, and for many investors, the only type of lending opportunity they end up considering over time.

If you’d like to know more about potential private mortgage lending strategies you can take as an investor, please give me a call to discuss further.


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About the Author Joe Walsh

I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel