Mortgage insurance is either government or private. Whether the mortgage insurance is government or private, the mortgage insurance is tax deductible.Private mortgage investors can charge more interest and points on a mortgage than a bank could because the risk of lending to people who aren't eligible for normal mortgages is far greater. Quite often investors lend to people with less than perfect credit, but they may also lend to real estate investors irrespective of credit.
Advantages:-
* As the lender, you are able to earn a high interest rate that is typically between 50 and 100 percent higher than the interest of conventional lending institutions.
* With private lending the investment is short term from 6 months up to 3 years earning you a high rate of return within a short period of time.
* Private lending in the current economic climate is more lucrative than investing in stocks and mutual funds.
* Private lending allows you to be creative with the financing which gives you better control over your money.
* You have the option to sell the mortgage to companies that buy them in the event you need exit the deal before the loan matures.
* Private mortgage lending allows you to invest securely in real estate without having to deal with the hassles that come with it such as problems with tenants and property maintenance.
* You are in control of how long your money works for you.
* You have the option of using an IRA to invest in real estate while still enjoying the tax benefits.
|