For some of our high net worth clients, a mortgage fund is not the vehicle of choice for their investment dollars. They would prefer to have their capital lent out on projects of their choice, with only their own funds in the deal. There are a number of reasons for this, including tailoring the type of returns they want to achieve. Portfolio management has many advantages for our high net worth clients.
What Does Portfolio Management Look Like?
Portfolio management is simply having our front end source mortgages for your company (which we can assist in setting up), and our back end manages the mortgages for you and your borrowers. We can handle all record keeping, client statements, collecting of payments, regulatory and legal issues pertaining to the loans. For all intents and purposes, we simply work and getting you the type of returns you want to achieve.
Our mortgage specialists will work with you to create the framework for your loans, as well as organize the team to facilitate the transactions including legal, appraisal and accounting support. Keep in mind, you can be as involved as little or as much as you like. Many of our clients simply want to achieve a return on investment with no involvement while others want to be much more hands on in terms of overseeing the process.
Benefits of Having Carib Capital Manage Your Mortgage Portfolio
Carib Capital gets approached from prospective borrowers every day, looking for financing due to the ability of Caribbean banks to assist them. These are strong borrowers who fall between the gaps of what is offered for non residents buying in the region. By having us manage your mortgage portfolio, we can cherry pick the strongest files, getting you solid returns without the risk often associated with private mortgages.
We will not only work on getting you a great return however, we also handle all the back end work associated with holding a mortgage for both you and the borrower. Handling customer inquiries, pre-payments, collecting late payments, all the things you don’t want to have to look after yourself.
The Costs of Portfolio Management
When we manage your mortgage investment portfolio, we collect a percentage of the interest charged on the mortgage; this means there are no out of pocket costs for you. We charge an origination fee for placing the mortgage (paid by the borrower), and this ongoing management fee. This fee can vary depending on how much or how little you want us to do.
At the end of the day, the small management fee far outweighs the cost of trying to manage your own portfolio of mortgage clients. Let us take the stress out of being your own bank!
