The Appraiser photographs and inspects each home and puts in writing an estimate of value. Conventional lenders offer low rates, and therefore private money sources like you must compete with these rates. Many investors are wisely investing at slightly less than conventional rates and still making an excellent yield on their money. Rates of return usually are 2 to 3 percent higher than GIC's or C.S.B.'s. Payments are usually made once a month, although arrangements can be made to have them paid weekly, bi-weekly or quarterly to investors.
Many investors prefer to receive interest only, with no principal.
Should the investor wish to have principal paid back in addition to interest, then an amortized mortgage is placed with amortization being between 15 to 30 years. The average mortgage can run from 1 to 5 years. Mortgages for periods shorter than 1 year are sometimes available. Each prospective mortgagor is carefully screened by us to insure ability to pay before we approach any mortgagee. Mortgages are and excellent source for Registered Retirement Savings Plans, yielding a better return than many other plans.