Investing in home equity loans may be the financial option you were looking for . An option that will allow you to obtain an interesting return and help other people to obtain liquidity. Since it is about mortgage investments typical of loans between individuals. If you want to know more about this type of loans do not stop reading the next post. Let’s start
Invest in home equity loans
Investing in loans with mortgage guarantee is one of the most used modalities at present . It is a financial product usually offered by private equity companies . That is, those that work with funds from private investors or companies but not banks. This type of product serves to offer loans to a wide variety of clients. With the particularity of using as a guarantee a property in property. The property that the borrower can use to request money must be free of charges and be susceptible to sale. In this way, in case of default, the lender can pull the guarantee to not lose your money.
The interest of this type of operations is usually between 9% and 13%. Since it is a product with few demands on the customer. What allows to get liquidity to all types of profiles. It does not matter if the client is in Asnef or if he has no regular income. As long as you have enough property and capital to pay dues each month, you can get a loan.
As an investor, this type of product offers us the opportunity to achieve good profitability with a fairly low risk . Something that today is impossible to obtain if we approach the investment products offered by banks.
If you are an investor with enough capital to look for long-term investments, home equity loans may be the product you were looking for.
Advantages of investing in home equity loans
- It is done through a private equity company . Unlike what can happen when we invest directly, this type of investment is directed by private equity companies. What does this mean? That you have advisors and entrepreneurs who are experts in finance who will be in charge of looking for clients and offering you profitable and relatively safe investments. In addition, these advisors work in a double line. That is, they help both the borrower to make the best decision, and the investor, to obtain the maximum return on their money.
- They tend to be long-term investments . What allows to obtain even more benefits through interest. In general and depending on the amount requested, the repayment terms of this type of loans usually go between 1 and 10 years.
- Attractive remunerations in the form of interest . Nowadays there are few investment products that offer as much security as the loans with mortgage guarantee with a high profitability. It is impossible for a bank to be able to offer you interest for its products between 9% and 13%.
- Sure enough bets . Do not forget that these are loans whose return is associated with a property as collateral. Therefore, in case of default you can always pull it. The properties that are used as collateral are very varied since the loans are designed for individuals and companies. For example, it can be used as a guarantee from a commercial place to a second home.
- Properties with loads are not accepted and an official valuation is always carried out . That is, if the property is not fully paid or has any debt, it will not serve as collateral for the loan. In addition, the amount that is always provided is associated with an official valuation by an external company regulated by the Bank of Spain. In this way you always have the real value of the property.