As real estate markets around the Caribbean take off, a lot of clients would like to get in on the action, but do not necessarily want to buy more property. For clients looking for a safe and reliable return in the Caribbean, private lending is the perfect solution.
Simply put, a private mortgage is one in which an private individual (or group of individuals) takes the place of a bank in financing a property for a client. These loans are quite prevalent in North America, however they generally tend to focus on markets that are outside traditional banking guidelines (ie higher risk).
In the Caribbean however, the banks are not always reliable when it comes to filling the needs of real estate purchasers, meaning private lenders have to pick up the slack. Unfortunately this means higher rates for buyers, but good returns for investors on low risk private lending.
Through our private mortgage placement, we match your risk and return requirements with the needs of our borrowers. The market will generally dictate the expected returns however by opening up to different types of loans, locations and property types, you can expect higher returns than a standard home loan.
A typical property would be a condo in a hotel development, lending 50% of the value, to a high net worth borrower from the US, Canada or UK. The expected net return would be about 7%. If you are interested in offering construction financing, we can likely get you 9%. Remember, we handle all the administration for your loan, all you have to do is collect your interest.
We typically offer loans in the Turks and Caicos, Cayman Islands and The Bahamas although will consider other islands depending on our investor’s requests.
Clients who want to invest in private mortgages need to ask themselves a few questions before getting started:
Contact us today to discuss becoming a private mortgage lender. We will show you just how easy it is to start making more money on your investments today without all the ups and downs of the stock market.