Private Mortgage Investing Vs First Lien Mortgages

There are a lot of investments tied to real estate and mortgages these days, and each needs to be evaluated on its own merits. Some mortgage brokers match individuals with cash to real-estate investors buying properties either in foreclosure or for the purpose of fixing and flipping it. Although these are not necessarily bad investments, they are sometimes more volatile. It is very important when choosing to use private mortgages as an investment to understand what you are investing in. Many first lien mortgage programs do not deal with individuals buying homes that simply cannot get a regular bank loan. If you do choose to go with a foreclosure or for a flip home, be sure to follow the same principles outlined in my book and in other entries on this blog. Loan to value ratios should be adhered to, viewing the property is a must, and understanding the risks is essential.

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