Carmen's Talk on Syndicated Mortgages

Carmen Recently appeared on Real Investments and did this really awesome talk on Syndicated mortgages.

In this discussion she get's into general mortgage lending with a focus on investing in developments

Please check it out and let us know what you think.

Should You Borrow from a Bank or a Mortgage Broker Like Pro Funds Mortgages?

What do We at Pro Funds Mortgages Recommend For Your Next Transaction? Glad You Asked...

If you’re looking to acquire real estate in the near future, then you should be congratulated on making an excellent decision. Real estate is one of the best investments you can possibly make in your future for a number of reasons. It steadily increases in value over time while simultaneously adding value and meaning to your life.

However, you’ll need to make a decision as to how to obtain your mortgage before you can become a property owner. Traditionally, many people have simply gone to the bank and asked for a mortgage, but more and more people are turning to mortgage brokers to make sure they are protected and being taken care of as they become new property owners. Is a mortgage broker the better, safer, smarter pick for you and your family? You might be surprised by the answer!

Getting the Best Possible Deal… and Most Importantly, Being Safe

If you already have a stellar relationship with a given bank, then a bank loan might be the option that makes the most sense. However, I urge you to be careful in making this decision.

In my experience, there is often a gap in real estate understanding within banks. The challenge is that the people working at the branch level are not focused on mortgages and real estate and often do not understand how the process works.

So why is this a problem?

Well, if the person arranging your mortgage doesn’t realize that your approval is conditional, they might give you some very costly advice.

It is very common for lenders to issue “conditional” approvals that are only usable if you can meet their requirements. If you can’t meet them, the commitment isn’t worth the paper it’s printed on.

It’s also important that your mortgage conditions are thoroughly reviewed because sometimes mortgage conditions are vague… and sometimes they are just downright unfavourable. At Pro Funds, this is the exact time of thing we pride ourselves on protecting our clients from.

So I can tell you with confidence that you really do NEED someone working on your behalf that can protect you from the fine print.

Please understand that I’m not intending to “put bank staff down”, but rather to explain why this requires your attention and how you can protect yourself.

It’s important to understand that the people who work in the branch are often splitting their time between a number of different activities. Here are just a few examples:

•         Setting up chequing accounts
•     Setting up other accounts
•     Credit card applications
•     Line of credit applications
•     Consolidation loan applications
•     Setting up TFSAs and RRSPs
•     Selling mutual funds
•     Selling other investments
•     Selling various forms of insurance related to their lending products
•     Day to day banking transitions, card setups, cheque issuing and book balancing

With all those things to do… how many mortgage files could they really have handled? How much could they really know about the process? Some may, but in my experience, the knowledge at the branch level is often insufficient to ensure that you are protected when buying real estate.

Think of working with an experienced mortgage broker or other mortgage professional as your best insurance for a purchase that is often the biggest one a Canadian ever makes. Ask questions, and make sure you’re covered!

A mortgage brokerage’s livelihood is in helping people from different situations and with a wide variety of different needs find the best possible option for them. Plus, a mortgage broker will do all the legwork for you when it comes to evaluating your options. When you borrow from a bank, it’s all up to you and that can be incredibly frustrating, not to mention time consuming.

Expert Help and Peace of Mind

When you choose to enlist the aid of a mortgage broker or specialist when it comes to finding the right mortgage options for you, you can rest assured that this person is focused. But you still need to test their knowledge! Make sure they handle a lot of files and ask them a few questions to see how they respond.

I encourage you to find someone you trust and build a relationship with them. Today, business is all about relationships. It’s what drives our economy. You need someone who knows you and is ready to help you in a mutually beneficial relationship.

And did I mention that the majority of the time working with a mortgage broker won’t cost you anything?

That’s right!

It’s well worth your time to seek out and secure the right relationship with a professional you trust.

Not only will the broker professionally assess your available options, help you pick the right one, and connect you with the resources you need to complete your purchase, but they’ll also make sure your ‘Is’ are dotted and your ‘Ts’ are crossed!

Let Pro Funds Mortgages Help You in your Next Real Estate Purchase

Here at Pro Funds, we’d be happy to help you make the best possible decisions when you’re buying your next property. Contact us at 1.888.330.3866 or info@profunds.ca and request to speak with a residential mortgage expert today!

The Pro Funds Team

Explore the Possibilities of a Private Mortgage with Pro Funds Mortgages

Although every would-be homeowner or potential real estate investor is no doubt familiar with the concept of a mortgage, some may not be aware of the fact that there is more than one option to consider. A private mortgage is a fantastic alternative to a traditional bank-funded mortgage for a number of reasons. 

When a person takes out a private mortgage, they’re borrowing from another individual, as opposed to a bank or other type of traditional creditor. Private mortgages can also be granted to the future property owner by a company or business. 

When set up correctly, a private mortgage is a win-win type of agreement that financially benefits both of the parties involved. The borrower gets the funds they need to acquire the property they want and the lender enjoys a unique opportunity to diversify their investment portfolio.

What to Consider Before Choosing a Private Mortgage

As is the case with any financial decision, a decision to borrow via a private mortgage (or lend, if you’re going to be the party putting up the cash) should be considered carefully before a final decision is made. If the borrower and the lender are familiar with one another beforehand, they should think about:

• How their relationship will change because of the private mortgage
• Whether or not the lender’s financial security will be in jeopardy if something unforeseen happens
• Who may be affected and how should the loan not be repaid for any reason.

      It’s also important to address other practicalities regarding the property in question. For instance:

• What condition the property is in 
• Whether proper insurance will be in place to protect the property 
• Are any other outstanding financial obligations going to get in the way of the loan being repaid on time

How to Enter into a Private Mortgage

 
Whether you’re the borrower or the lender in regards to the private mortgage, thorough documentation is key right from the minute both parties decide the deal is a go. This means drawing up a loan agreement to make sure everything that’s been discussed or decided is right there in writing. The lender must decide how much they are willing to invest and they must be sure that said amount is in liquid form – if not cash, then registered funds, like RRSPs, LIRAs etc. The borrower must agree to a time frame for repayment and be prepared to honor that deal.
 

For best results, it’s important to work with a qualified mortgage broker from beginning to end. Mortgage brokers who focus on real estate investors and private mortgages should generally be able to ensure proper documentation is reviewed and protect all parties interest. At Pro Funds mortgages, we help with every step of the private mortgage lending process from beginning to end. Our team can consult with all involved parties to determine the wisest course of action. We can also help connect interested parties to the best possible opportunities.

Once an opportunity is identified, our team will handle the required documentation process to the benefit of all parties involved. We then make sure you have access to qualified legal council who will facilitate the closing process and the transfer of funds.

Get in touch with the team at Pro Funds Mortgages today and tell us more about what we can do for you! You’re sure to be glad you did.

The Pro Funds Team

info@profunds.ca

1.888.330.3866