docdrs

Mortgage broker has a client that can't get a first mortgage from a bank because he has bad credit or does not show enough income on his T4. He needs 350,000 for a 500,000 dollar house. Yes its reputably appraised value is 500,000. so I lend the guy 350,000 at 8% and have the first mortgage on the house. If he stops paying me I do a power of sale and just need to sell it for less than 400,000 to get my money plus expenses and penalties. With A second there is more risk but you can get 10-12 depending on how much risk. Typically I never go more than 75% of the appraised value.

petee_c

Thanks folks,

I need to decide what RRSPs I'll buy. There's isn't a whole lot of extra room. So I'll be nest egging the rest is some non RRSP dohicky.

TFSA may not work for me as I am an 'American persons' and just found out recently that the IRS will be looking for me.

Lived in Canada since I was 3, but have dual citizenship.... I've to figure out what to do with that moving forward... Never ever filed with the IRS...

I'll look at the options for parking the money for a bit.

Imo000

Sounds like a loan shark. Is this legal?

docdrs

Ha ha , isn't it great, all legal thru your lawyers , all costs paid by borrower and also Rrsp and TFSA eligible. Pain for the banks so Olympia trust is one of the few who will handle them

moab

I love how threads always veer away from the original topic... OP seems to want to preserve his capital, not risk it. I would not suggest the above investment for someone unless they are prepared to risk losing their money. You are not getting 8% for no risk. Plus, you can't guarantee your $ won't be tied up longer than you expected.

docdrs

Oh! So sorry for presenting an option on a OT thread. How about you re-read the first post!

moab

I read it. Hard to get a mortgage for one year with certainty you are getting repaid by a sub prime borrower. But what do I know ...,

docdrs

You said it...... So why don't you tell us, and add something positive to the questions, rather than disrespecting something that you apparently know very little about. And/or never did the appropriate homework on.

moab

Well I've been investing in in real estate for 25 years and have been practicing commercial RE law for 18. Ok Doc?

OP, go with the alternative savings/investment accounts posted by others if you are looking for a safe haven for your $ for the short term.

docdrs

Then I would think you would understand the vehicle I brought up and how low risk it is when proper equity is maintained and a well thought out legal contract is in place. ....... but then I also thought that some of the lawyers and accountants I've had, had my best intentions in mind and knew what they were doing so they were fired! Not a reflection of all as I also know some very good ones. So NO it is not ok just because you say you have.

Well at least something pertinent to the OP thread, although nothing already mentioned.

Turbodan

I arrange private mortgages for clients usually ranging from 8-10%. They are also rrsp and tfsa eligible. contact me if anyone wants to invest. ltv always under 75%.

petee_c

2 questions.

How do people with bad credit afford 6-8% mortgages? I admit, I was pretty much born with a silver spoon in mouth (my dad worked as a physician for 40yrs) and I came out of university debt free, but even if your family is broke, the choice to go out and get a mortgage that high is a little shocking.

Anyone have a good book recommendation on how to manage your money for dummies?

Peter

993c4_Toronto

If you are looking to park cash and want a good rate with no lock in at all and you have maxed your TFSA, EQ is the best deal (max $100k).

If you have a longer time horizon, mortgage funds like Harbour are great for 6-12%. They are RSP and TFSA eligible by SOME banks (for some reason).

colombiano

I used Tangerine, which I had to read up about first, but they are owned by Scotiabank and so far I have been pleased. Right now they have 2.4% interest on savings account, no need to lock in.

theiceman

Could you expand on this ?

Edit : my iPhone did not show updates so I will now go read.