First-time investors can feel overwhelmed when choosing a mortgage investment company (MIC). It doesn’t have to be that way! You can evaluate several areas of a MIC to help you make an informed decision with confidence. Here are a few tips on choosing the right MIC by assessing their reputation, performance, and industry knowledge.
The reputation of a mortgage investment company is crucial in your decision-making process. It helps you understand how the company operates and its track record in the market. You can also get a feel for their investment style and if that aligns with your values. Here are a few points to consider when evaluating a company’s reputation:
- Research the company’s history: Look up its history and find out how long they have been in business, what types of mortgages they specialize in, and its overall reputation in the industry.
- Check reviews and ratings: Look for online reviews and ratings from other investors who have worked with the company. Check for any negative reviews or complaints against the company and how they handled them.
- Ask for referrals: As your friends, family, or other trusted advisors if they have any experience with the company and what their thoughts are.
The performance of a MIC refers to its ability to generate returns on investments while managing risks. Generally, managing risk and generating returns is one of the top reasons people invest in MICs! Here’s what to consider when looking at a company’s performance:
- Review the company’s portfolio: This will let you understand the types of mortgages they invest in, the geographical distribution of those mortgages, and the level of diversification — all of which are important considerations for the real estate lending industry.
- Look at historical performance: Look at the company’s performance to see how they’ve done. Keep an eye out for trends and how they’ve handled market downturns.
- Compare the MIC to market benchmarks: Look at how the company measures up to market benchmarks and compare them to other companies in the industry. You’ll want to see if they deliver better or worse returns than the average.
At Giavest™ Capital MIC, we value transparency and share a monthly portfolio update so our current and future investors can track how we perform for them.
The expertise of a MIC means that the company understands the market and can identify opportunities. You’ll want to know they can actually do what they say they can! Here’s what to look for:
- Evaluate the company’s team: Look at its team and their individual experience in the industry (and in the specific geographical region you’re looking to invest in). Check if they have a good track record of finding and acting on good opportunities.
- Understand the company’s investment strategy: This is important, as it will let you know how they approach risk and risk management. You’ll want to be sure their approach aligns with your investment goals and risk tolerance.
- Ask questions: Any MIC should be able to answer any questions you may have about their investment philosophy, how they approach risk management, and how they identify opportunities. How they answer your questions will show their expertise and let you see whether or not their philosophy matches your own.
So, by evaluating a MIC’s reputation, performance, and industry knowledge, you’ll have a leg-up on making a more informed decision about where you’d like to invest. Choose a company that aligns with your investment goals and risk tolerance, and find a MIC with an overall investment strategy you’re comfortable with. Remember to do your research and ask plenty of questions before making your decision!
Giavest™ Capital Mortgage Investment Corporation is a Canadian exempt market product intended for distribution by way of Offering Memorandum only in those jurisdictions where it may sell securities through a registered exempt market dealer, and this information is not to be construed as an offer or solicitation for the sale or purchase of securities. Past performance may not be indicative of future performance and there are no guarantees of future performance or dividends. Prospective investors should read the Offering Memorandum before making an investment decision.