Private Money

WHY LEND WITH STREETWISE MORTGAGES

LEAN ON OUR DEEP LENDING EXPERIENCE TO HELP YOU MANAGE THE RISKS OF PRIVATE LENDING

We have developed an exclusive methodology (STREETWISE LendRightTM) to help assess and manage the risks of private loans on behalf of our lenders.

This increases the likelihood of a successful exit while earning excellent returns.

Up to 80% loan to value in markets that are based on our BEST to INVEST research. These markets have the following strong fundamentals: 

  • Demonstrate strong economic fundamentals for driving value
  • Supply and demand are tight
  • Low vacancies
  • Rent and values poised to increase
  • Diversified economy

 
Up to 75% loan to value in markets outside of our BEST to INVEST list (up to 80% on an exception basis for cities with populations of 50,000+)

CREDIT SCORE: 640 or higher

TAXES: Proof of no  personal taxes owing to CRA

NET WORTH: Confirmation of personal net worth (only required on mixed use and 5+ unit multifamily)

INCOME: Proof of qualified or stated income

CONDITION: Run down property will demand a higher rate premium (0.5% or greater)

ZONING: Confirmation that the use of the property conforms to zoning

PROPERTY TYPES: Residential (1-4 units), 5+ Unit Multifamily, Mixed-Use (No Land, No Recreational Properties, No Industrial)

MARKETABILITY: Max sale time (based on the appraisal report) of 3 months for 1-4 unit residential properties, and 12 months for mixed-use or 5+ unit multifamily

RANK: 1st or 2nd mortgages 

EXIT STRATEGY: Confirmation of exit strategy through full deal underwriting of anticipated future scenario IS COMPLETED UPFRONT

USE OF FUNDS: Property acquisition, renovations, additions, construction. No debt consolidation or payout of another private (exceptions on deal by deal basis)

Complete a private lender profile

become an approved Streetwise Private Lender today!

WHAT ARE THE RISKS OF PRIVATE LENDING AND HOW TO MITIGATE THEM ?

Top Reasons to lend with Streetwise Mortgages

01.

EARN EXCELLENT RETURNS WHILE MANAGING RISK

You must be wondering what return can I expect when I lend on private mortgages through Streetwise Mortgages?

Our answer is: Between 9%-11% on a first mortgage and between 12%-14% on a second mortgage (including fees).

However, what is often overlooked in the process of private lending are the risks associated with the returns. Generally, the higher the risk the higher the returns.

02.

SIMPLIFY YOUR LIFE AS A LENDER

When lending through streetwise mortgages, your loans are administered through a licensed mortgage administrator.

This means that:

A. You get the interest from the borrower deposited into your account . No manual cheque deposits or e-transfers!

B. If for any reason there are delays with payments, a mortgage administrator partner will get in touch with the borrower to help resolve the matter for you and they know the ins and outs of collections and any legalities surrounding the process.
 
C. Get monthly statements of your mortgage holdings with a detailed break down of any interest and fees you earned. This will come handy at tax season. No more Excel spreadsheets to track what you are earning on your private mortgage investments.

03.

YOU CAN LEND USING REGISTERED FUNDS

You can mix and match the types of funds you use for lending: both registered and non registered.

For example: you can use funds from your RRSPs, your spouse's RRSPs, TFSAs, or other non-registered savings. It is even possible to use funds from both your TFSA and RRSP accounts.

The key is to have a self-directed registered account with a trust company (such as Olympia Trust) if you would like to lend registered funds or TFSA funds.

Our team can help you setup a self-directed account with Olympia Trust to facilitate lending through your / your spouse’s registered accounts*

*$500 setup fee applies

04.

DEDICATED LENDER RELATIONSHIP MANAGER

Once you become an approved private lender with Streetwise Mortgages, you will be introduced to your Account Manager who will:

1. Present you with private lending deals that are suitable for your goals, budget, and risk appetite

2. Assist you with setting up a self-directed account if you wish to invest using registered funds and do not yet have a self-directed account setup

3. Answer any questions you have throughout the lending process

Complete a private lender profile

become an approved streetwise private lender today!