What the hell RRSP is?Topic: Mortgage
Ever wish you could do something with your RRSP that was tied to real estate? Well you can have an RRSP mortgage! There is a couple of ways of doing this.
1. Use our RRSP mortgage and let an investor have it for buying a piece of real estate. This can be for a first or second mortgage, and the rate of return on the mortgage is up to you and the investor. If the person who needs your money has a really good deal in front of them, they will be more than willing to give you a higher rate of return. If the deal is not so good, but still very secure they will want to give you a lower rate of return. Either way you will beat the banks, and in many cases beat the markets. But do your own research.
2. You use your RRSP with a larger company that sets up mortgages for larger projects. These are quite often first mortgages on property that the investor plans on doing something with. I have seen rate of returns in the 10%-23% area. The most common advertised though is the 10%-12%. But remember this are speculative rates of return, not guaranteed! So do your homework! There is many financial planners out there that would suggest you do not invest your RRSP in a mortgage. Remember they do not usually get paid on that form of investment therefore it is not in their best interest to suggest for you to take your RRSp out of their funds and put them elsewhere.
How to set one up?
The easiest way is to go to a financial institution and set up a self directed RRSP. Then if you can find an investor who invests in real estate. You can approach them and see what sort of returns they would give you.
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Felt so hopeless lokonig for answers to my questions...until now.
I agree with first response, but I have to be coercennd about elderly people who find themselves in a credit problem, when they already have a reverse mortgage. The problem is 4 years of reverse pmts. if they did pmt. only , or were they receiving monthly pmts. Any and all monies paid to them will be added to their bal. Reverse mtgs. have different pay structures, and they may not have enough equity to Re-Fi. If you are going to advise them, first look at the type of mortgage, and the accelerated clause, or the pre-payment option disclosure. Also H.U.D. has a website dedicated to this subject. Hope this helps,Good Luck!
maybe because there is a dnefrfit types of sims and yours don't have business in ityours (real estate) is 4 Bon Voyageand there is no business in it.try another type, i don't know which on has it
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