Investing in private mortgage lending used to consist of families and friends helping each other with house payments, but the profit potential in private mortgages for the lender, and the clear benefits to the borrower, has helped this investment strategy gain popularity in the investing community.

Private mortgage lending involves an individual investor taking on the risks and rewards typically held by mortgage lending institutions. This type of lending can offer good returns and low risk, if structured properly, because it is secured against the actual property.

WealthBridge provides private mortgages that have several benefits to borrowers and investors. They allow borrowers who don’t qualify at traditional lending institutions to get mortgages elsewhere. Investors holding private mortgages can receive interest rates significantly higher than standard rates offered by banks.

A private mortgage can take on different structures, depending on what the parties are willing to agree to. While most private mortgages take on terms similar to hard money loans, it is possible for the lender and borrower to come up with a completely different structure. Buyers who take on a private mortgage can also build equity, if they pay on time, assuming the loan is fully amortized and not an interest-only loan. Borrowers may eventually be able to refinance the mortgage at a lower interest rate through a conventional lending institution. If investors need to get their money out before the loan matures or is paid off, there is the potential to sell the private mortgage to a number of companies that buy them.

Investors should not jump into private mortgage investing without extensive experience. It takes experience and knowledge, as does any viable business. There are risks associated with any investment, and investing in mortgages should be carefully considered just as you would carefully analyze an investment in stock or any other investment vehicle.

WealthBridge has extensive experience in arranging private mortgage financing for investors and borrowers.