Captive Capital Deployment for Private Equity Mortgage Investor-Lenders

CIC vs MIC

Captive Investment Corporations (CIC): Why not BE THE BANK (R)

If you are have funds to invest, understand the benefits of primary mortgage securities investing and appreciate the idea of not pooling your funds with the general public, by investing in the shares of third-party investment companies or investor syndications, look no further.

If you or your family would like to deploy some investment capital in primary mortgage securities, by way of first mortgages or second mortgages; on residential or non-residential (commercial, development, vacant land) real estate and you are curious about MortgageQuote's services for Private Equity Mortgage Investor-Lenders, here is the answer: BE THE BANK! ®

Why BE THE BANK®?

Look at the bank default rate, less than 1%; and the banks PAY to borrow money. If you already have a net worth of $50M or more (or less), your current risk free rate of return is approximately .51% (Dec. 2016 - See US treasury bill returns). US Inflation is 1.5%. Your savings are being eroded because not making enough money to cover inflation.

If you goal is preservation and modest growth of capital, investing your funds in the stock market is most likely too volatile for you. And if you have offshore holdings, you may not be able to invest surplus funds in your home country, so your only option is to diversify your returns on capital offshore. Offshore real estate is often safer then offshore equities or other public market investment.

As a private equity mortgage investor-lender, you can earn returns of 7%, 8%, 12%, 14% - in YEAR 1; why go through the risk and volatility of public markets when you can control your investment capital on a 1:1 basis on a direct mortgage security. For hundreds of years, the banks can't be wrong. MortgageQuote has developed a system that is certified to Canadian National Standards, to ensure that you, too, Can BE THE BANK (R).

Do the Math & Understand the Reduced Risk enjoyed by Banks via Direct Mortgage Investing

With direct mortgage investing, your risk (absolute, relative and default) is reduced. Less than 1% of mortgages go into default, yet the returns on a controlled, direct mortgage investment far exceed what the uncontrolled public markets are able to offer.

Default Rate (Foreclosure)

Very low; less than 1%.

According to the Canadian Bankers Association as at July 2016, out of #4,701,498 mortgages outstanding, only #12,971 mortgages a rate of 0.28%, were in default. As a CIC , you can tailor make your investment profile to emulate the banks; so you too, can enjoy a similarly low default rate.

Proprietary MortgageQuote Canada Corp. Default (Foreclosure) Mitigation Process

Further, MortgageQuote Canada Corp. has implemented EASYOUT; a proprietary financial product described as:

  • EASYOUT: Non-Judicial Mortgage Enforcement Program (Non-Insurance Lender Protection)
    • A sensible alternative to the burden of mortgage loan insurance products.

In the event of default, properties are typically sold or refinanced (especially those for whom a First Mortgage is registered) before going through a full foreclosure process.

Your Money - Your Possession - MortgageQuote: Keeping it Simple

MortgageQuote never touches your investment capital - it goes from your company/investment accounts - to your lawyers - to the borrower's lawyer/title company - to the borrower - and then back to you by way of posted dated cheques (for interest payments) and, upon redemption of the instrument, the principal returns to your, by way of your lawyer from the borrower's lawyer/title company.

Face Rates of Primary Mortgage Securities

Whatever you want to earn:

  • LIBOR (overnight rate) + whatever Basis Points you want
  • Average Range for First mortgages is: 7% - 13% (contact us for modal ranges)
  • Average Range for Second mortgages is: 12 - 21% (contact us for modal ranges)

Rate of Captive Capital Deployment on a per Month Basis

You deploy as much money as you want per instrument:

  • $300,000.00 - $400,000.00 - $500,000.00; any dollar increment you choose.
  • We can fund anywhere from 10 mortgages per month to 100+ mortgages per month; just tell us your desired objectives and we will set up a bespoke deployment solution for you, in an ecosystem certified to ISO 9001:2015 for the scope of Mortgage Banking (lending in Canada) and Mortgage Brokerage Operations.

Financial Product Lines

You may earn revenue from multiple revenue streams, depending on what you would like to invest in:

First Mortgages

Second Mortgages

Third Mortgages

Or any other real estate secured, customized primary debt instrument that we can create for you.

Types of Real Estate Asset Secured

  • Residential Real Estate (Sinble, Multi-Family)
  • Vacant Land/Development/Agriculture Land
  • Commercial Real Estate
  • Industrial Real Estate
  • Construction Projects (new home construction, renovation projects)
  • Specialty Properties
    • golf courses
    • amusement parks

Location of Mortgaged Property

You can invest in any where you want. Canada, USA, England, Germany, or any other country in the world.

CIC versus MIC

CIC is better than a MIC. Proof is here