If you are a somewhat savvy investor who dabbles in the mortgage market, let us show you why investing in offshore mortgages is a great way to increase returns while minimizing risks. Carib Capital works with investors looking to lend out money to borrowers in the Caribbean vacation market.
Caribbean Versus North America
When you lend into the private mortgage market in North America, chances are you will be lending to borrowers who are in trouble. If these were strong borrowers, they would simply use a bank. Loan to value requirements are higher and borrowers are less qualified. These investments carry a significant amount of risk.
In the Caribbean, borrowers are clients with enough wherewithal to be purchasing vacation properties in the tropics. Loan to values are low, generally not exceeding 50%, and returns are high, generally in the 8% range. We also only work in desirable locations where the marketability of the properties is high. A great return for a low risk investment.
How to Invest in Offshore Mortgages
There are a couple of different ways to invest in offshore mortgages. We can facilitate transactions with clients actively looking for private loans to fund their property purchase. In these situations you would be the mortgagee, funding the entire loan. This gives you control over the borrower, property, location and terms. This has a lot of appeal for many of our investors.
The second option for becoming an investor in offshore mortgages is through an established mortgage fund. These options allow your funds to be across a number of different loans, minimizing your risk. The loans funded through these funds would have similar characteristics to the private mortgages above.
Examples of Offshore Loans We Have Facilitated
Here are just a few examples of mortgages we have arranged lately:
- Condo in Turks and Caicos – This condo in Royal West Indies was purchased for $500,000 and we financed 50%. The rate of return for our investor was 8%. The client was a professional from Canada, who planned to leave the property in the strong rental pool which covered the mortgage payments.
- Villa in Turks and Caicos – This vacation villa was purchased for $1,500,000 and we facilitated a loan for $750,000. The rate of return for our investor was 8%. The buyer was a business owner from the US.
- Condos in Cayman Islands – This unique loan was a blanket mortgage over 3 condos being rented long term. We refinanced 40% of the value through one of our mortgage fund partners. The rate of return was 8%. The borrower was a business owner from Canada.
These loans are very typical of what we do here at Carib Capital. Low risk and high returns for those looking get their money working for them.
If you are interested in diversifying your portfolio by investing in offshore mortgages, contact us today. We will go over your options and recommend the best alternative for you and your specific situation.
