Comments on: QCash on Investing in Second Mortgages http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 23:42:26 -0330 http://wordpress.org/?v=abc hourly 1 By: A Peek into a Millionaire’s Account Structure | Million Dollar Journey http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-50749 A Peek into a Millionaire’s Account Structure | Million Dollar Journey Thu, 04 Sep 2008 10:30:56 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-50749 [...] investments - most notably this is through B2B Trust which offers mortgages to third parties. I hold a couple mortgages in this account. As the monthly and bi-weekly payments are made, each year I transfer the cash over to R1 and [...]

[...] investments – most notably this is through B2B Trust which offers mortgages to third parties. I hold a couple mortgages in this account. As the monthly and bi-weekly payments are made, each year I transfer the cash over to R1 and [...]

]]> By: Brent Irving http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-17687 Brent Irving Thu, 22 Nov 2007 19:31:46 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-17687 Excellent post. In Western Canada the returns on 2nd mortgages are around 12%. In a housing market like we've recently experienced 2nd mortgages have been extremely low risk. Excellent post. In Western Canada the returns on 2nd mortgages are around 12%. In a housing market like we’ve recently experienced 2nd mortgages have been extremely low risk.

]]> By: Katherine http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-17496 Katherine Tue, 20 Nov 2007 22:44:21 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-17496 You can lend mortgages up to 12% - it's not uncommon through some lawyers who introduce you to the client. You do your own due diligence as to the background of the person and the property. These are 1st mortgages as well. New Professional people in the country who cannot qualify yet under our banking system etc. There are many unusual situations out there, the trick is to find the person or lawyer who deals in this. These might only last a year, until the borrower has established an history and can go to a bank to negotiate a lower and more current rate. You can lend mortgages up to 12% – it’s not uncommon through some lawyers who introduce you to the client.
You do your own due diligence as to the background of the person and the property. These are 1st mortgages as well. New Professional people in the country who cannot qualify yet under our banking system etc. There are many unusual situations out there, the trick is to find the person or lawyer who deals in this.
These might only last a year, until the borrower has established an history and can go to a bank to negotiate a lower and more current rate.

]]> By: This and That http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-16987 This and That Fri, 16 Nov 2007 01:41:40 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-16987 [...] A Million Dollar Journey reader shares his experience with investing in second mortgages. [...]

[...] A Million Dollar Journey reader shares his experience with investing in second mortgages. [...]

]]> By: Q Cash http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-16181 Q Cash Thu, 08 Nov 2007 23:58:21 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-16181 FT I would have to take steps through my lawyer to initiate a power of sale. No worries on the first one, the house value has risen significantly since I started the process (I sold for just over $100K and these units are listing for $160K right now). Also the payment is 75 per month so it is not a huge burden on the owner. The second one is more difficult in that is a friend, but I also work with him on his business and am aware of his current financial situation which is why I felt comfortable doing the second mortgage for him. When one of my previous mortgagors hit me with some NSF cheques, I went to talk to my lawyer about my options. He calmed me down and said it was doable. It is a long process to undertake a power of sale. But again, because these are in my RRSP, I am not relying on them for day to day income, so if I missed 4-6 months of payments while the power of sale took place, it wouldn't impact my day to day life. Q FT

I would have to take steps through my lawyer to initiate a power of sale.

No worries on the first one, the house value has risen significantly since I started the process (I sold for just over $100K and these units are listing for $160K right now). Also the payment is 75 per month so it is not a huge burden on the owner.

The second one is more difficult in that is a friend, but I also work with him on his business and am aware of his current financial situation which is why I felt comfortable doing the second mortgage for him.

When one of my previous mortgagors hit me with some NSF cheques, I went to talk to my lawyer about my options. He calmed me down and said it was doable. It is a long process to undertake a power of sale. But again, because these are in my RRSP, I am not relying on them for day to day income, so if I missed 4-6 months of payments while the power of sale took place, it wouldn’t impact my day to day life.

Q

]]> By: ThickenMyWallet http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-16170 ThickenMyWallet Thu, 08 Nov 2007 22:15:08 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-16170 QCash is right. B2B seems to be the only option going now a days for RSP 2nd mortgages and they have terrible customer service- big and bureaucratic. QCash is right. B2B seems to be the only option going now a days for RSP 2nd mortgages and they have terrible customer service- big and bureaucratic.

]]> By: FrugalTrader http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-16146 FrugalTrader Thu, 08 Nov 2007 14:30:40 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-16146 QCash, what is your contingency plan in case your borrower defaults on their payments? QCash, what is your contingency plan in case your borrower defaults on their payments?

]]> By: Q Cash http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-16141 Q Cash Thu, 08 Nov 2007 10:52:12 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-16141 FB 10% is pretty rare these days, that's why I only have the 2 left and yes I did negotiate a decent term and interest rate with my friend (6.75%) but that is because B2B has a minimum rate for mortgages (2nds are market plus 1%, 3rds are market plus 3% -- I think, never done a third). FT I don't think I would sell these for a discount (certainly not 60-70% less than they are worth :-) but that is because I don't need this cash in the near future. As this is in an RRSP I don't expect to use until 2030, I can actually let them play out for the full amortization if I choose to. In the meanwhile, my cash grows and each year, I transfer the cash into my discount SD RRSP and purchase other investments so I can compound my compounding :-) Q FB

10% is pretty rare these days, that’s why I only have the 2 left and yes I did negotiate a decent term and interest rate with my friend (6.75%) but that is because B2B has a minimum rate for mortgages (2nds are market plus 1%, 3rds are market plus 3% — I think, never done a third).

FT

I don’t think I would sell these for a discount (certainly not 60-70% less than they are worth :-) but that is because I don’t need this cash in the near future. As this is in an RRSP I don’t expect to use until 2030, I can actually let them play out for the full amortization if I choose to.

In the meanwhile, my cash grows and each year, I transfer the cash into my discount SD RRSP and purchase other investments so I can compound my compounding :-)

Q

]]> By: The Financial Blogger http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm/comment-page-1#comment-16140 The Financial Blogger Thu, 08 Nov 2007 10:22:28 +0000 http://www.milliondollarjourney.com/qcash-on-investing-in-second-mortgages.htm#comment-16140 Thx Qcash for sharing your experience! I guess that you (or your friend) are negotiating the term and the interest rate? It must be pretty hard to get more than 10% in today's market, isn't? Thx Qcash for sharing your experience!
I guess that you (or your friend) are negotiating the term and the interest rate?
It must be pretty hard to get more than 10% in today’s market, isn’t?

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