RSP 2nd Mortgage Investments

Similar to active real estate investing, you may chose to invest your RSP capital into 2nd mortgages.

RSP structures have allowed investors to use their capital in this method for years. The two key points of consideration are:

1. The ownership of the property must be at arm's length to you. IE, you can not hold a 2nd mortgage on a on a property that you own or is owned by a direct family member.
   
   
2. The total debt on the property, including your 2nd mortgage, must not exceed 100% of the appraised value.
   At Right Side, target between 80% and 90% depending on the investment requirements of both the lender and the Joint Venture Partner.

Typically, the investment capital required for a 2nd mortgage is between $20,000 - $50,000. This is a good option for you to explore if you want to take control of your under performing RSP account and don't qualify for the syndicated Fund offered.