Investors

We use pooled funds from investors for funding by giving preferred shares in our company and investor returns are based on the average interest income from second mortgage-pooled residential properties after deducting management fees and taxes.

Based on the current macroeconomic outlook dominated by inflation and slowing growth as well as long-term debt cycles which work over the span of 100 years, we are convinced we may be headed into a major financial market upheaval soon. Hence, it is highly recommended to diversify into assets which need to have the least amount of correlation with equity markets.

Canadian second mortgages provide a very attractive option for diversification as currently real estate market itself does not offer real risk-free returns above US treasuries. By actively managing loans we choose to fund we hope to keep any likelihood of default to a minimum and by controlling the loan to value of equity minimize any loss of principal amount.However, our conservative approach to investing should yield even better returns for investors if a loan collateral must be liquidated eventually as described in the investor agreement. There is expected to be a secular tailwind of appreciation of the Canadian dollar compared to the US dollar weakening over the next 1-3 years which will also increase the returns of invested capital.