Private Mortgage Investments
Carib Capital’s role in this process is simple; we have clients looking to borrow money and clients looking to invest their money and we bring them together. We do not sell, hold or invest any investments instruments, we simply bring investors and borrowers together and your lawyers do the rest. If you do not have a Caribbean lawyer, we can make recommendations on experts in the different markets who specialize in real estate financing.
When you consider the returns, the low risk, and the control you have over your investment, there is no better investment than private mortgages here in the Caribbean. The banks have created a gap in the market, which benefit smart offshore investors.
Mortgage Investment Funds Versus Investing Privately
For those trying to decide between a Mortgage Investment Fund in the Caribbean, and investing in mortgages privately, there is a lot to consider. Mortgage funds do not give you control over your investment, funds are pooled and lent out based on the merits of the loans. When you lend out privately (or join with other investors), it allows you to choose the properties and borrowers; it gives you control.
There are pros and cons of both, but generally mortgage funds in the Caribbean will give you a good rate of return with a low risk on your investment.
Caribbean Mortgage Funds
Mortgage funds are a great investment tool, known for higher returns on relatively low risk investments, Caribbean mortgage funds offer the same great benefits on offshore properties. Caribbean mortgage funds don’t need to be nearly as aggressive, but still offer the great returns you would expect from a typical investment.
The Benefits of Investing in a Mortgage Fund
Mortgage funds invest in a large number of properties; this spreads your funds and the risk involved. Because these funds offer financing in cases where the banks cannot, they also offer higher returns. Does this mean that the properties or borrowers are high risk? Well in the US and Canada, yes. In the Caribbean however, it is simply a matter of no other options, so the clients are often AAA.
What this means at the end of the day, is you are investing in AAA clients, on highly marketable properties at a high rate of return. Very few investments can offer a better rate of return on a lower risk product. The mortgage funds we work with offer a maximum loan to value of 50%, compare this with the risk profiles on private loans in the US and Canada which can go as high as 90%.
How Much do I need to Invest?
We work with a number of mortgage funds, and they are all different in terms of their requirements. Some do not require a hard minimum in terms of dollar amounts. Others we work with require as much as 250k. The smaller funds will be Island specific, while the larger fund will lend in a number of different locations to further reduce the risk for investors.
US residents can also face challenges when investing offshore. It’s best to talk to us directly about what we are able to offer and not offer. In some cases, a different type of fund may be the only option (i.e. property versus mortgage fund).
Talk to us today about your investing options in Caribbean mortgages today!