Mortgages are Better than the Stock Market

Stocks, Bonds, Mutual Funds or....Mortgages????

The biggest secret in the investing world: Direct Private Mortgage Lending (DPML).

Why take the risks of the stock market or settle for the poor returns of a mutual fund or the public shares of a Mortgage Investment Corporation, (a corporate entity also known as a MIC)?

In today's era of High Frequency Equities Trading, Secondary Markets, Hedge Funds and numerous other "special purpose investment vehicles", why isn't mortgage investing more widely touted as an excellent investment vehicle? Micro-crashes, major crashes, technical crashes (due to faulty computers); don't lose your principal due to the unknown trading conditions of a stock exchange.

Here are some reasons:

1 - stock brokers/financial advisors don't get paid to "sell" (advertise, promote or even talk about) mortgage investments

2 - stock brokers/financial advisors need to be licensed to trade in mortgages

3 - stock brokers/financial advisors need minimum educational requirements in order to become licensed

4 - it is hard to place $10,000,000.00 or similary large quantities of cash into a singular private mortgage investment

Why should you add DPML to your well diversified portfolio?

Three words:




Mortgage investments normally generate from 8% - 12% returns for "first charge security" to 36% or more, on "secondary or tertiary charge security". In Canada, the legal limit for mortgage cost is 60%, so, one can go as high as 60%.

There is nothing more satisifying than securitizing your investment with real estate. You are not investing in "paper" or "shell" companies, nor are you investing in conceptual items such as "options" or "derivitives", rather, you are investing in real property. Your name appears on deed/title documents as a mortgagee to a real property.

The penultimate benefit, before securitization by real estate, is cash flow. Knowing that you are getting 12% interest, paid monthly and having the benefit of "post-dated cheques" or direct payment into your account is very much a good thing.

To start investing, contact: underwriting[at]

Mortgages are better than Equities

For you, mortgage investments might better than equities. For example, look at it from the point of view of risk and return. Equities are riddled with beta (risk), and the markets are inefficiently riddled with systems designed to benefit people who are richer and smarter than you (learn about High Frequency Trading, as an example). When was the last time you traded in derivatives? When was the last time you shorted a stock of the same company that you had holdings in?

As of September 30. 2015; over 10 years, S&P 500 has a NET TOTAL RETURN of 6.12%.

This is BEFORE inflation adjustment.

Visit PEMX for our private equity mortgage returns.

NOTE: The total return version reflects the effects of dividend reinvestment. Finally, the net total return version reflects the effects of dividend reinvestment after the deduction of withholding tax. Source.

A good S&P500 calculator is here.

PEMX Investor-Lenders generate greater returns in 1 year than what the nouveau capital markets will offer over multiple years, with less risk.

Consistent Returns

Once the stock named Kodak was king, now the company is sold for asset value. Blackberry was on top, now it is lost its lustre. Facebook, Groupon, Zynga -- what "value" beyond social networking and retail advertising, do these "billion-dollar" companies bring? All of these stocks lost value after going "public", which means that the "insiders" or company founders made all of the money after selling the "hype" of their business to the open market.

Private first mortgage rates have consistently hovered around the range of 7% to 12% and more, since historical times.

Centuries Old Practice

The formal electronic stock market is a very young investment vehicle; designed only in the last few years. It has not held up to the "test of time" as well as mortgage investing has. Mortgage investing is thousands of years old (see wikipedia).

Private mortgage investing is centuries old. For as long as humans could "own" land, people have used it as security for financing.

Multi-Generational Wealth

Look at the generation of investors from 2001 to 2012 and beyond. There is a generation of investors who have lost more money, or merely broken even.

Mortgage investors have learned that true, multi-generational wealth can be achieved since "real property is going nowhere".

Mortgages are Real

Invest in real estate - something tangible and real

Mortgages Create Cash

Earn monthly cashflow (don't wait for some dividend from some board of directors)

Invest in countries where the rule of law is strong, the economy is stable and the demographics support a workplace that generates sufficient wealth to support debt instruments.

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