If you already know what first mortgages are, then why would you want to invest in second mortgages? Before we delve into the specifics of second mortgages, let’s start with the basics and get a better understanding of what mortgages are in general for the novice investors …
What kind of mortgage is tax deductible mortgage? Hmmm … the name of it sounds quite attractive! Everyone wants to save on taxes, now you can too with tax deductible mortgages. Note that not all homeowners are eligible to use this program, but nevertheless, everyone can work towards saving taxes on their mortgages. Let’s see how it works …
What is “hard money lending”? If you are new to investing passively, you might want to stay away from “hard money loans” since as the name says, it’s “hard”. Hard in the sense of tighter terms and conditions; and especially higher in interests … that is why it’s “hard money”. Hard money is essentially private money that is lent out to borrowers who would otherwise get a conventional loan from banks and other financial institutions. This type of loans may not necessarily be for mortgages and secured by real estate property. Instead, hard money loans are a quicker and may be easier type of loan that is secured by other collateral and for various purposes, such as construction loans, bridge loans, personal loans, car loans, etc …
In real estate, as the name says, “equity take-out” is simply taking out equity, that is, equity from your property, whether it is your primary home or any rental and vacation properties. However, it is not as simple as the name says! There is a lot more to it than just taking out equity. Let’s begin with what equity is so you have a better understanding of how to position yourself and your home for this “equity take-out” strategy …
“Vendor Take Back Financing” (also known as ‘VTB’) is also called “Seller Financing”. This is when the seller gives you a mortgage to buy the property! Why not let the seller finance your purchase while you can make extra passive income with your own?! …
