Mortgage Investing Frequently Asked QuestionsPlease See our Frequently asked questions in regards to Mortgage Investing.
Why invest in Private Mortgages?
1. Fixed Income: Unlike many investment options available in the public markets, private Mortgage Investment is an alternative form of investing that primarily provides its investors with returns in the form of fixed payments. All our Mortgage investment options provide investors monthly, semi-annual, or annual fixed payment options.
2. Secured Against Real Estate: Mortgage Investments are all secured against real properties, with recourse options available in the event that invested mortgages go in default. This means that in the event there is a default we are able to sell the property in order to pay out outstanding mortgages
owing, (for example) whereas with investments in public stocks, a loss or default usually results in a loss of your investment with very little recourse.
3. Diversification: Canada is currently an attractive market, particularly where real estate is concerned. By investing in private mortgages you are in fact investing in Canadian Real estate.
4. Locally Sheltered: For those investors seeking diversification in locally sheltered urban pockets of Canada’s hottest markets unaffected by global pressures of the public markets. The investments offered by Merit Valor Capital and Obsidian Mortgage Corporation allow you to establish an investment component to further diversify your investment portfolio, and/or investment offerings.
Why invest with Merit Valor Capital?
1. Choose your Own Risk/Reward.
All Mortgage Investments offered via Merit Valor Capital & Obsidian Mortgage Corporation are priced in terms of risk. With conservative investments such as 1st mortgages opportunities available with returns of 6-8% and 2nd Mortgage opportunities ranging in yield from 10% and up depending on your risk tolerance, and type of mortgage investment product.
2. Our Due Diligence Process.
All Properties that we invest in go through a due diligence and underwriting process, in which properties are appraised by appraisals, supplied to us by third party independent certified CRA and AACI appraisers. This also includes a thorough screening of the applicants/borrowers and exit strategy of the requested mortgage. It is during this initial screening process that that risk, and pricing of the investment is evaluated.
Obsidian Mortgage Corporation is a nationally recognized and awarded brokerage firm that has provided quality private mortgages to its investor clientele for over a decade. It should be also noted that none of the mortgage investments available from Merit Valor Capital exceed 90% of the property’s value.
3. Mortgage investment options:
We currently offer 3 different mortgage investment options:
a. Syndicate Mortgage Program: This Program allows for multiple investors to invest into a single mortgage. All investors are participants in the mortgage, and share in the risks/rewards together.
b. Mortgage Investment Corporation Fund Offerings: Investors are able to purchase shares or units of a fund that invests its capital in a group of mortgages. This allows for more diversification per dollar of an investors capital, than syndicated mortgages as capital is invested in multiple
mortgages as opposed to a single mortgage.
c. Private Placement Investments: Investors are able to invest their capital in a series mortgages all reserved and owned by the investor (without participation from any other
investors). These mortgages are selected and purchased on an individual basis by investors via our PIXchange – The Private Investor Exchange Platform, and administered/serviced by
Merit Valor Capital.
4. Merit Valor Capital Mortgage Administration Services:
We work extremely hard to take the day to day management of your mortgage off of the individual investors hand, and make the investment experience as stress free as possible for our investors, (and management Teams). All mortgages originated via Merit Valor Capital and Obsidian Mortgage
Corporation’s all come with Merit Valor Mortgage Administration service Built in. These services include (but are not limited to) the following:
a. Online Reporting/Access: Via our PIXchange – The Private Investor Exchange Platform, Participating investors are able to see the activity on their mortgage investments online, 24
hours a day, 7 days a week. This includes access to see when payments have been made or deposited, notes on investment accounts, or running tallies that summarize how much money
your investment is making you.
Private Mortgage Placement Participants (PIXchange Members) also able to view and access available mortgage investment and purchase them at their own convenience from anywhere, at anytime.
b. Mortgage Impairment Insurance: All MVC administrated mortgages are covered by blanket coverage of mortgage impairment insurance to help add a further layer of protection insuring the underlying property asset in the case that it is damaged, or borrowers are in default due to their inability to keep proper insurance on the property.
c. Legal Services: In the Event of Default MVC handles the servicing of the default on the investors behalf, including the assignment of legal counsel and legal fees as part of its servicing
agreement, and all at no additional cost to the investor.
Still have Questions? Email us, we are happy to help youWe are committed to ensuring that your privacy is protected. Should we ask you to provide certain information by which you can be identified when using this website, you can be assured that it will only be used in accordance with this privacy statement.
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