Thursday, July 13, 2006

Explaining Private Mortgage Investing

What is a mortgage?
A mortgage is a debt owed for a specific length of time, using real estate as security. The difference between the mortgage(s) on the property (what is owed on it) and what the property could be sold for, is known as equity.

Since few properties today sell for cash, mortgage money has to be available. Therefore the mortgage loan is is the basis for nearly every transaction in real estate.

Lenders are known as "mortgagees" borrowers are "mortgagors".

How safe are mortgages?
No investment is 100% safe; but then few investments are as safe as real estate!
Take a look at the houses around you and see how much they have risen in value over the long term.

Based on the continuously rising long term trend in real estate, an individual lending 80% of a properties value today, could have their equity substantially increase over time.

To learn more, buy and read Private Mortgage Investing by Teri B. Clark

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