3 Things to Look for in a Mortgage Investment Corporation

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March 15, 2022

A MIC (mortgage investment corporation) allows members to experience the benefits of investing in residential and commercial real estate without the hassle of homeownership or title transfers. While there are many reasons why you should choose a MIC, not all mortgage investment corporations are equal. To ensure that you are choosing the best option for your investing goals and preferences, it is important to know what to look for in a mortgage investment corporation. That is why the experts at PHL Financial Group have provided a list of qualities to look for when considering your options.

3 Qualities of a Great Mortgage Investment Corporation

When it comes to mortgage investing, the corporation you choose to partner with will have a significant impact on the results. To determine if a MIC is the right choice for you, be sure to look for the following qualities:

1. Experience and a Proven Track Record

When it comes to selecting the right mortgage investment corporation, the experience of the fund manager you will be working with is crucial. An experienced fund manager will have the knowledge needed to navigate any potential challenges or difficult situations that may arise, allowing for a smoother experience. Look for a MIC with a proven track record of successful mortgage placements, achievement of yield targets, and sustainable, well-managed portfolios.

2. A Variety of Options

Like any asset class, mortgage investment corporations are not a “one-size-fits-all” solution. Experienced fund managers offer investors a selection of MIC funds with various risk and return profiles. This is based on the mix of mortgage types – first, second and third – and maximum loan values. Whether you are averse to risk, more aggressive with risk, or seek a more balanced approach, a MIC should offer a solution that suits your goals and preferences.

3. Effective Risk Management

When selecting a MIC, it is important to understand how the fund issuer manages and mitigates risks. Risk mitigation will include processes for sourcing and adjudicating loans, limiting the duration and the size of the loans, and performing proper due diligence on the borrower and the property. These processes should be laid out in the mortgage investment corporation’s disclosure documents and other investor communications. While minimizing risk is always the goal, it is crucial to note that no investment is without risk.

To learn more about our investing solutions, get in touch with the team at PHL Financial Group. We can be reached by phone at 604-579-0844 and will be happy to answer any questions you may have regarding our services or your investment goals.