What is a Silent Real Estate Investor?
What is a silent real estate investor? A silent real estate investor is often a mistaken term for a silent second mortgage.
I have had a number of people recently contact me asking what is a silent real estate investor? Typically I find that when people are asking just what is a silent real estate investor, what they usually are really inquiring about is what is called a silent second mortgage. This is a common misunderstanding of terms and has led to a lot of confusion about silent real estate investors as well as silent second mortgages.
A silent second mortgage is basically a second mortgage that is granted by a third party to individuals who qualify at what are usually beneficial terms to the borrower. For example let’s say you worked for a corporation that wanted to relocate you to a new town but you couldn’t necessarily come up with the down payment for the new home you would need to buy. In this case the company might support the move by financing the down payment through a silent second mortgage at a low, or even no interest. You might even see terms such as the second mortgage is not payable until after the first mortgage is paid off or the home is sold.
A silent second mortgage is basically a home loan in which a third party is a silent investor in your property, for the purposes of helping you to purchase a home you may not otherwise be able to.
So if you’ve been wondering why you can’t find any info on just what is a silent real estate investor is, this common misunderstanding of terms is likely the reason why.