• Alternative Investing

  • Many real estate investors start out with a dream of owning many properties. But, often, factors outside of their control – like low inventory, high prices or low cash flow – can push the dream farther and farther away.

    If you have available funds but can’t get the returns you want or can’t find a property within your budget, there are many different options available to make your money work harder.

  • Syndicated Mortgage Investments (SMIs)

    These are large-scale, blue chip real estate investment opportunities in which, investors lend money to Canada’s most experienced, successful real estate developers to support their urban housing, and commercial real estate development projects.

    Essentially, you invest in a diverse suite of high quality real estate developments as a lender and realize consistent, predictable premium returns.

    When I began doing my research, I searched for a company that had a track record of successful development projects, one associated with the best developers and a company that had successful exits (projects that had been built and sold).

    I found such a company in Fortress Real Developments.

    I invested my husband’s RRSPs with Fortress. Our investment will grow at a minimum rate of 8% per year and, with every investment, there is the opportunity, though not guaranteed, to participate in the developer’s profits.

    Here’s how it works: Developers must have at least 20% of their own funds to put into the project and must pre-sell 75-80% of the units before construction financing through the bank is triggered. Investors like you and me fill in the 15% gap, which goes towards marketing, building the sales center, etc. This is where the syndicate comes in – as investors we syndicate our funds to invest and are listed on title in second position for security against our investment.

    Benefits of investing in Syndicated Mortgage Investments:

    • Minimum fixed annual returns of 8-12%
    • No fees ever – the only yearly fee ($417) is if you invest in an RRSP with Olympia
    • Eligible with RRSP, LIRA, TFSA, RESP, CASH
    • Direct collateral to protect every investment – you are registered on title
    • Robust suite of high quality opportunities to choose from
    • Flexible terms ranging from 1 to 5 years
    • Easy to participate – minimum investment only $30,000
    • Eligible for US and other foreign investors
    • Fully vetted by mortgage agents/brokers
  • Mortgage Investment Corporations (MICs)

    Like syndicate mortgages, there are many MICs in the marketplace – all are not equal, so you must do your due diligence but that’s where I can help – vetting MICs on returns, performance and where they invest.

    Most MICs are private lenders lending to borrowers at rates between 7-12%. They get funds from investors like you, paying out 6-10% depending on the fund and the company.

  • Private lending

    This option, which I personally love, is where you become the banker.

    Borrowers often need second and sometimes third mortgages. As a broker, I can help you to lend out your money. The terms are usually 1 year long and rates can range from 8-10% for a 2nd and 12-15% for a 3rd mortgage.

    Private lending gives you the ability to put your money to work for you and earn as much if not more without the hassles of being a landlord.

  • Investing in gold

    Precious metals like gold and silver are increasingly accessible to regular investors. I invest with a reputable German company that sells gold. You can learn more by watching this video. 

  • In conclusion, there are many alternative ways to invest in real estate. Regardless of what option you choose, the rule of thumb, is to calculate your liquid assets and invest no more than 10-25% in either option. To use a popular phrase when it comes to investing, don’t put all of your eggs into one basket!