Why Should you use a MIC?
21 Oct 2021 Mortgage
Few forms of investment can provide the same level of stability and diversity as a MIC. A Mortgage Investment Corporation (MIC) is an investment and lending company that allows investors to pool their funds in a diverse portfolio of residential and commercial mortgage loans. As one of British Columbia’s top providers of real estate investing, PHL Financial knows that a MIC can provide a wealth of benefits for investors. That is why they have compiled a list of key benefits to demonstrate why you should use a MIC.
Key Benefits of Working With a MIC
Working with a Mortgage Investment Company offers several benefits including:
Steady Dividends from a Large Pool of Mortgages
A MIC allows individuals to invest in a larger pool of mortgages in a diverse portfolio that takes advantage of the housing market. It can provide a steady flow of dividends, allowing for consistent and reliable income in most cases. In general, a MIC is an opportunity to invest in the housing market with a team of industry experts. The goal is always to turn your investment into reliable and regular income.
Access to Knowledgeable Industry Experts
When it comes to your personal finances and hard-earned money, you do not want to cut any corners with respect to experience and industry knowledge. Working with a MIC offers you access to the knowledge and skill of industry experts. Their extensive experiences with different investment scenarios allow them to make qualified decisions that help diversify and strengthen your mortgage investment portfolio. This team of experts is committed to ensuring that your portfolio is diverse, strong, and built to optimize the chances of you receiving a healthy return on your investment.
A Diversified and Sustainable Portfolio
Most experts will tell you that portfolio diversification is a key to successful investing, whether it is in the housing market or foreign markets. Not all MICs are created equal but building a portfolio that is based on diversity can mitigate risk and potentially provide a higher return. The patterns demonstrated in successfully managed MICs focus more on risk management and less on chasing higher yields. Effective risk management practices coupled with an experienced team allow successful MICs to build a strong mortgage portfolio with higher quality assets and better value for investors. A MIC also utilizes structured due diligence to mitigate default risk and ensure adequate capital liquidity, helping to protect against inevitable fluctuations in the real estate market.
To learn more about the benefits of a MIC, get in touch with the experts at PHL Financial. They can be reached through their online contact form and will be happy to answer any questions you may have.