Q. "Isn't real estate awfully risky?"
That's like saying "aren't knives deadly?" Well, they can be if that’s your intent. They can also be life savers – how else could we cut up meat? As with everything, it's how you use the tool. This site is not trying to get you investing in a shady land deal over a Superfund site. Our focus is on making standard, real estate investments and, bank-like loans on properties. We aren’t concerned about the repayment ability of the borrower since the real security for each loan is in the substantial collateral of each property. Make no mistake that investing does have risks. The trick is in choosing those investments, and how much of a safety net (collateral) you build under them. That's where our specialty comes in – because we’re good at it.
Q. "If this is such a good investment, why isn't Wall Street advertising it on TV?"
These are not mass-produced investments, but individual properties you make a loan onwhich. Wall Street pros want to raise C$50 million at a whack, which requires generic investments that are mass produced. They have no interest in matching up individual lenders with single properties, so their response is that real estate is not allowed in your self-directed RRSP. They make more off of their fee-bloated mutual funds they direct you to.
Q. "What if I want to get out of the investment earlier than I had planned?"
You should only be investing an amount of money that is safe to leave in the investment for a long term and length of the loan. Since a real estate borrower will be most likely use the loan to renovate a property and sell it, that process must take its course before the borrower will be repaying the loan. Because of this, the investments are not able to be withdrawn on a moment's notice. It’s also why you can expect far more profits than a money-market account will deliver.
Q. "What are the tax consequences of these investments?"
We aren’t tax advisors. You should consult with tax professional before making any such investment. Since you would be a lender you wouldn’t have depreciation benefits. You will be receiving interest income which may or may not be able to offset the income with your other investments.
Q. "Do I invest in one property or several?"
You invest in one specific property at a time. That's the beauty of this investment: You always know where your money is going. If you like this form of investing, you can always make multiple separate investments.
Q. "Investing in only one property means I'm not diversified, right?"
Your portfolio should already be diverse and adding private lending to that mix shouldn’t happen until it is. Private lending makes your portfolio even more diversified. We wouldn’t suggest to put all of your investable assets into one private loan (or one stock or mutual fund, for that matter!).
Q. "Where do I go from here if I have questions or want to get started?"
We're only a few clicks away. Contact us by using our completely private, confidential online system.  Learn About These PRIVATE Investments
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