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CORE Diversified Morgage LP

CORE Diversified Mortgage LP
now open for investment

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We make Investing Accessible

Registered funds as RSP & TFSA’s are eligible to invest through the Core Mortgage Trust.  These accounts are held with Community Trust and we are more than happy to help get your registered account set up and funded.

If you are interested in investing or learning more, please contact Jacob Goldstein, our licensed Dealing Representative with First Republic Capital, at (647) 207-1474 or jake@firstrepubliccapital.com.

Webinar Roundup: Seniors’ Housing with Richard Noonan

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Thank you

…for participating in our Seniors’ Housing webinar, and we’ve added you to our early-announce list; we’ll notify as soon as our next seniors’ housing investment opportunity (Renaissance North Bay) goes live.

Any feedback on the webinar? Let us know your thoughts

You can access the webinar recording below:

Watch Recording

You’re Invited to Core Academy – Premier Commercial Real Estate Educational Event

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This full day event, being held September 8, brings together top level development experts in self-storage, mixed-use, and seniors housing, along with experts in capital lending and blockchain technology sectors to address critical and timely issues that are driving change in the commercial real estate industry today. Collectively, the CORE Academy presenters have been involved in billions of dollars worth of real estate developments throughout North America. This conference delivers a practical and impressive educational program with renowned leading edge speakers and panelists. This together with the organizers’ commitment to propel the industry forward with greater insights and practical business practices on self-storage, seniors housing, mixed-use development and blockchain technology, is sure to make this year’s Conference a wise investment for real estate developers and investors alike.

 

Registration now open – why not take advantage of the special advanced registration rate of $199 + HST

 

You’re Invited to Core Academy – Premier Commercial Real Estate Educational Event

800 505 CORE Advisory Group
This full day event, being held September 8, brings together top level development experts in self-storage, mixed-use, and seniors housing, along with experts in capital lending and blockchain technology sectors to address critical and timely issues that are driving change in the commercial real estate industry today. Collectively, the CORE Academy presenters have been involved in billions of dollars worth of real estate developments throughout North America. This conference delivers a practical and impressive educational program with renowned leading edge speakers and panelists. This together with the organizers’ commitment to propel the industry forward with greater insights and practical business practices on self-storage, seniors housing, mixed-use development and blockchain technology, is sure to make this year’s Conference a wise investment for real estate developers and investors alike.

 

Registration now open – why not take advantage of the special advanced registration rate of $199 + HST

 

You’re Invited to Core Academy – Premier Commercial Real Estate Educational Event

800 505 CORE Advisory Group
This full day event, being held September 8, brings together top level development experts in self-storage, mixed-use, and seniors housing, along with experts in capital lending and blockchain technology sectors to address critical and timely issues that are driving change in the commercial real estate industry today. Collectively, the CORE Academy presenters have been involved in billions of dollars worth of real estate developments throughout North America. This conference delivers a practical and impressive educational program with renowned leading edge speakers and panelists. This together with the organizers’ commitment to propel the industry forward with greater insights and practical business practices on self-storage, seniors housing, mixed-use development and blockchain technology, is sure to make this year’s Conference a wise investment for real estate developers and investors alike.

 

Registration now open – why not take advantage of the special advanced registration rate of $199 + HST

 

Investment Lessons From Moneyball

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One of the greatest movies of all time, in my opinion, is Moneyball. Perhaps it’s because I always enjoy a good David-versus-Goliath story or, in this case, how a small market team was able to outshine those with much greater payrolls.

The reason is that Billy Beane, the manager of the Oakland Athletics, is a contrarian at heart. He acknowledged a weakness in the method everyone scouted and selected players, thereby giving him opportunities to pick up high-quality, highly skilled but undervalued players for a fraction of the cost.

“In human behavior there was always uncertainty and risk,” wrote Michael Lewis in Moneyball. “The goal of the Oakland front office was simply to minimize the risk. Their solution wasn’t perfect, it was just better than the hoary alternative, decisions by gut feel.”

Similarly, investors should be asking the right questions about how they make decisions. Are they falling privy to human emotion such as following the crowd or making decisions based on intuition?

Success lies in two key concepts: being open to new opportunities and working exceptionally hard to capitalize on them. Great opportunities are constantly around us, but most of us simply don’t tune them in. How would one go about recognizing these opportunities?

Imagine radio waves or cell phone waves. We are unable to see them or feel them, however, we know they exist. Why? Because we have devices that capture those waves and turn them into something we can understand – sound.

This also holds true for “opportunity waves”. They surround us all the time. Every event creates them, yet only a few people are able to tune in, because they made the conscious choice to capture them.

The good news is, you don’t need such a device since our minds are already hard-wired to pick up on opportunity waves. Nonetheless, like most features on your smart phone, you just haven’t figured out how to use them yet.

The best investors have discovered how to effectively utilize that part of their brain. They recognize that every article they read, every interview they listen to, and every presentation they attend is infused with great ideas waiting to be received.

When ordinary investors hear a speaker examine the challenges of the inefficiencies of peak energy production, they attempt to find out which traditional energy producer is the most efficient. When extraordinary investors listen to the same speaker, they think about who is leading the new work on batteries that store power generated in off-peak times.

When ordinary investors read a report stating oil prices are on the rise, they examine which airlines have the best hedging strategies in place. When extraordinary investors view the same report, they consider which aircraft manufacturers are working on future-friendly designs that significantly maximize fuel efficiency.

And when ordinary investors come home to find their teenaged kids abandoned their chores to video chat with their friends, they get upset and take away the kids’ devices. Extraordinary investors also get upset and take away their kids’ devices, but not before deciphering the latest apps they were using and how to invest in them.

Analyze the best success stories over the centuries and you’ll discover, without exception, the ones remembered through time are those who are extraordinary thinkers with extraordinary work ethics. As with yin and yang, you can’t have one without the other.

When you are ready to embrace extraordinary, call or email us at CORE Advisory. Let’s have a CORE Conversation and begin the investor’s journey to EXTRAORDINARY.

John Was Right

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The major fortunes in America have been made in land.” – John Rockefeller

I once had an Italian client named John. While we were talking investments, he said, “You know, the mob is actually better than the banks. At least, they warn you before they take your money… the banks just take it.” At the time, I was new to the financial industry and held banks and investment companies in high regard. I chuckled and amicably disagreed with him.

You know what I discovered? John was right.

The truth is, the system is stacked against you. The trillion dollar financial industry is deliberately designed to make as much money from the everyday Canadian as it can, while creating massive profits for themselves. Banks do what they do best; they make money.

I became completely obsessed with finding a better investment strategy. It is a passion. I have been studying the strategies implemented by the some of the wealthiest people in Canada and have realized that most of us never attain access to this information. Here is one type of investment that has made many people rich, yet almost never heard about…

In the 1950s, the introduction of Modern Portfolio Theory, and its consequent implementation in the 1960s to 1980, allowed commercial real estate to transition from a cottage industry to a bona fide asset class. This was done by institutional investors and its existence and ownership was made largely inaccessible to the vast majority. Today, real estate competes directly with stocks, bonds, currencies, commodities and other financial assets.

The evolution of the commercial real estate sector occurred much as evolution does in nature: life-threatening conditions forced inhabitants to adapt or perish and introduced new entrants to the ecosystem. A new investment opportunity emerged – one that is quite resilient. Today, more than ever, real estate and capital have a symbiotic relationship. One cannot exist without the other. Understanding commercial real estate is the key to preparing for the many financial opportunities that lie ahead.

A great starting point is the advent of syndicated mortgages. What I like about this powerful and game changing investment strategy is the fact that it is simple to understand. It is secured by real estate, independent of stock market volatility and provides a SOLID rate of return.

A syndicated mortgage allows several smaller investors to combine their financial resources to fund a real estate development projects via a mortgage instrument. In essence, it is a financing and investment vehicle that allows business owners and investors to partner up and make money together.

The first reason why Syndicated Mortgage Investments are great, is the fact that it is secured.

Any time you are looking to invest your money, common sense tells us to ask: What is the collateral you are offering me in exchange for my money? When a bank gives you a mortgage, they hold your house and land as collateral. This offers them safety and security in return for the mortgage loan. With a syndicated mortgage, you are doing the same thing only at a grander scale with the real estate developers. Your Syndicated Mortgage Investment is registered with the Ontario Land Registry as a first or second mortgage.

The second reason why Syndicated Mortgage Investments are great, is the fact that it is predictable. You know well in advance how much your investment stands to earn because it is predetermined. No stock market ups and downs for you.

Depending on how the interest payments have been determined, you may receive interest payments on a monthly or quarterly basis. The structure of interest and bonuses are different from project to project.

Lastly it’s easy to understand. Most of us, one time or another, have had a mortgage. We know how it works, no rocket science involved. The only change is, now you are the bank holding the cards in your favor.

To learn more about syndicated mortgages and discover if this investment could be right for you, call or email us to speak with a CORE advisor in your area.

The Feeling is Not Mutual

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Demand for investments have grown substantially, however, it seems like the mutual funds are enjoying the greater portion of the profit surplus. Unfortunately, mutual funds don’t perform at the level they claim. Today, we are going to highlight the issues within the investment industry in general, and with mutual funds in particular.

Here are six things we don’t like about the mutual funds:

1) Watered-Down Returns

Imagine the perfect glass of lemonade: it has the ideal amount of sweetness and the precise hint of lemon. Now, add a gallon of water to the glass of lemonade. Do you still want to drink some? That, in a nutshell, is a mutual fund.

Mutual funds suffer from over-diversification. Regulations cap the money a mutual fund can invest in any one company. How this affects you: any positive growth in the upside of the market will occur at a very sluggish pace. There is not enough money invested in one stock, or even a few stocks, to fuel fast returns (profits).

Since positive growth occurs at a slow rate, you would expect losses to show up at a gradual pace as well, right? Wrong. As many banged-up retirement funds reveal, the large diversification of the fund does not protect you from harsh declines in the market.

The rule of the market is that downturns happen more dramatically than upswings. This implies you get slower upside growth and rapid downside losses.

2) Too many Choices

Mutual funds are a popular and appealing investment because they provide everyday investors the belief that their investments are protected with a diverse number of stocks in a single investment vehicle.

The challenge is choosing the right mutual fund combo to invest in. There are at least 15,000 mutual funds to choose from in North America, hundreds of which are mere duplicate others.

It makes for a confusing mix of choices for investors. We may think we like choices, but behavioural research reveals that people simply can’t handle so many options.

Furthermore, a new study, building on prior research, discovers that the more investment choices a person is given, the more likely he or she is to naïvely divide the money equally among the options, which can potentially reduce returns, with long-term consequences.

3) High Management Fees

It is no surprise that Globe and Mail has labelled mutual funds as the “black hole of Canadian investing”. According to work done by independent analysis firm Morningstar, we discover that our fund fees are among the highest in the world.

 

 

But what does come as a surprise to many, is the fact that managers charge high fees just to hold cash. These managers charge 2% or more to hold cash and do nothing. While it sounds small, this fee guarantees that mutual fund managers remain in the country’s top echelon of earners. Think about it for a minute: 2% of $250 million (a small mutual fund) is $5 million – fund managers are certainly not going hungry!

It doesn’t make any sense to charge investors when the funds are not in play. The next time a fund manager boasts about his/her 40% cash holdings, ask for a corresponding 40% reduction in fees — see how that works out.

4) Fund Managers Charge Fees Even When You Lose Money

In almost all businesses, you are not required to pay if a company does not perform. If anything, you receive a small discount to compensate. For instance, if your new microwave does not work, the store will get you a new one or refund your money.

In the investment world, however, if you lose 40% of your money, your investment advisor or funds manager still takes their 2.5%.

We have significant appreciation for companies who waive their fees when investors lose money – however, there are very few of them around.

 

5) They Want All Your Money

Investors with large portfolios always have the same question: Do I have enough money to retire. In almost all cases, not only do they have enough money to retire, but they may have more than enough to retire and enjoy the rest. Yet, they constantly worry, because the investment business keeps them anxious about market corrections, increasing interest rates, and inflation.

As a result, many investors continually plow money into their accounts, producing generous fees for the industry, when they could be out using their money to fund other opportunities that create a satisfying life. Some investors, of course, won’t have enough. But the industry is unquestionably skewed to try to take it all.

Taking into account the amount of investment fees in Canada, do you believe any advisor would recommend to an affluent client that her portfolio is more than sufficient to support a retirement of her choosing and to take $1-million out of her portfolio and donate it or give it to her children? We highly doubt it.

6) Bewildering Terminology

Do you know what your fund’s Calmar ratio is? What about the B-Share or C-Share? Financial professionals love to toss around elaborate jargon to astound existing and prospective clients. It helps them look like experts in the eyes of their customers. But, really, is all that complicated terminology really necessary?

Most investors just want to make money on their money. They could care less about ratios, alphas and the like. Is it easy to find an advisor who just tells their client: “Here is what you made, and here is what I made from you.”

Of course not. The reason this doesn’t happen is because sometimes clients will make less than their advisors – and, well, it’s just not in the industry’s interest to tell you that.

Now that we’ve discovered what’s behind the curtain, what can you do about it?

Well, you have a couple of options:

  1. Sit and Do Nothing – after reading this blog you can proceed to deleting the information and simply do nothing, continue with status quo. If you’re currently invested in mutual funds, you can let the industry continue to bill you fees that bleed your portfolio and complain about how your funds are performing.
  2. Do Something – start googling alternative investments and discover a world of opportunities. Pick the ones that peak your interest and risk tolerance levels. Get EDUCATED. Reach out to the experts. If Real Estate is the vehicle for you – then talk to us. Check your schedule, set a coffee date or take advantage of any of our CORE events that give you a chance to talk to our advisors and experts in the field of Real Estate Investing. Get in front of investments not readily available to the market that are secured, little to no fees, offering predictable results.

Three Ways Men and Women Think Differently About Retirement

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Mostly, we see eye to eye. But although there are several commonalities, according to recent research conducted by MIT AgeLab, men and women have very different perspectives about retirement. In addition, numerous studies reveal that gender strongly influences the path that men and women take to plan for their retirement.

Here are five ways men and women see retirement differently.

  1. Who Will You Focus on After Retirement?

Empirical evidence shows that men and women share the same dreams and goals for retirement: better health and more free time. However, the people we choose to spend time with after retirement are an integral part of planning for the future. Let’s look at the differences between men and women:

Men: Men tend to focus on their spouses. Their first priority for retirement planning is often to secure their partner financially. They tend to be concerned about their partner’s health and security, rather than that of other family members.

Women: In addition to work, women’s identities are very closely tied to the relationships they have built nurturing their families. Often, a lifetime of caregiving equips women with a sense of purpose to serve others that will last into retirement. Hence, women are more likely than men to report adult children, grandchildren, siblings and close friends as part of their financial planning for retirement.

  1. How Will You Spend Your Time in Retirement?

This question is fundamental to financial planning. It determines how much you will need to save to retire comfortably while addressing future goals and pursuits.

Men: Men see retirement as a reward. They see it as an opportunity to pursue activities they may have delayed for years. For instance, after retirement, they look forward to leisure and travel time. This ties in perfectly to why men report they need more for retirement: almost one in three Canadian men say they will need $1 million or more for retirement. Among those who expect to work past the age of 66, most men say they’ll do so “because they want to”.

Women: Women tend to continue with their roles after retirement. They perceive retirement as continuing to pursue the roles they are already involved in, such as part-time work, volunteering, and taking care of loved ones. They frequently describe retirement in terms of specific tasks and activities. Hence, most Canadian women say they will need less than $500,000 to retire – since they plan to continue with part-time work and other opportunities.

  1. How Do You “Feel” About Retirement?

Interviews reveal that men are much more enthusiastic than women about retirement.

Men: After men have retired, their children have grown, and they no longer have the obligation to work full-time, they are excited to see large amounts of leisurely time that they never had available before. This often gives them a sense of optimism and confidence for the future.

Women: On the other hand, although women view retirement as a potentially joyous and exciting phase of their lives, they use the word “worry” when they talk about retirement. Women often report being more worried about having enough money to retire comfortably. This may be due to the fact that the average lifespan of a Canadian woman is generally higher than that of their counterparts, and hence, women are more likely to outlive their male partners. In fact, the average age of widowhood for women in Canada is 56.9. With the passing of the spouse, women often experience a steep drop in income, which explains their financial worries. However, fear is sometimes the greatest motivator, and women seem to have a healthy dose of concern about their future, which allows them to plan ahead.

Your Next Steps

It’s important to recognize that there is more to retirement than money. It’s about exploring how you truly feel about the life stage, defining who is most important to you and your retirement plans, what activities and roles you will pursue after full-time work has ended, and most importantly, having a detailed discussion between couples of all types and ages on how they envision an ideal retirement and constructing the plan to get there.

Talk to your advisor today to schedule a Core Conversation to discuss your expectations for retirement and how they can complement your partner’s. The key lies in learning from each other and how to work together to build a dream retirement.

How the Sharing Economy Will Affect Your Future

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Conventionally, we have always evaluated success and measured wealth by counting our possessions. “The one with the most toys wins”.

In many ways, retirement planning is about accumulating enough money to pay for our assets in life after work. Retirement is also about rewarding ourselves. We’d love to buy that car we’ve always wanted, purchase a new property, travel to exotic places – things we just didn’t have the time for during the decades we were preoccupied with work. But what if you could have it all – without the financial obligations of owning any of it? The good news is, now you can.

The Sharing Economy

Welcome to the sharing economy. The sharing economy uses the Internet as a way of providing services, experiences, and products on demand without ever “owning” them. Sometimes referred to as collaborative consumption, the sharing economy can be defined as the conversion of tangible assets into services.

So basically, objects we generally own may transform into a service available for you to purchase by the hour, day, month, or year. For example, let’s look at the travel industry. Ever heard of Airbnb? With the ease of a button, travellers all around the world can rent a room, a whole house – or even a British castle! It offers nearly 200,000 rooms, apartments, boats, and treehouses in 190 different countries.

Let’s see some more examples:

  • Transportation: Rideshare services such as Uber, Lyft, and others leverage smartphone platforms to match rides with riders. These types of services are cropping up all over the world.
  • Everyday Tasks: Websites such as Taskrabbit.com allows consumers to go online to post a job they need done, such as watering the yard, mowing the lawn, or cleaning up the garage. Neighborgoods.net provides a platform for people to share, lend, rent, or sell just about anything. With dogvacay.com, dog owners can leave their dog with a host that will take care of it.
  • Clothing: Have a special party or dinner coming up? For a fee, renttherunway.com lets you select designer clothes online. When the party is over, you can box up the outfit and send it back. Poshmark.com allows users to buy and sell designer items from their wardrobes.

This new sharing economy will revolutionize the way we think and plan for our retirement.

What Does the Sharing Economy Mean For the Future of Retirement?

The Sharing Economy prioritizes experiences over possessions. In fact, in the sharing economy, experience is king. Cash flows will be more important than ever. Ownership will be less significant to have the agility to change your lifestyle rather than locking away cash in property and other assets. Here’s why:

  • Commuting: The cost of getting from Point A to Point B may require weekly fees for transportation rather than parking thousands of dollars in your garage.
  • Live where you want: Living in apartments is an attractive opportunity for retirees who seek exciting environments instead of parking their cash in one property. Harvard University’s Joint Center for Housing Studies confirms that the number of adults aged 55-64 choosing rentership, over ownership, grew by 80%, compared to 50% between 2002-2012. It’s a good idea to make sure you have the liquidity to pay for rent and other fees.
  • Additional services: Lifestyle changes, divorce, loss of a partner, and fewer children may result in the need to hire professional help for tasks such as home maintenance, groceries, transportation, and other services.

What’s Next?

The Sharing Economy may be a lifestyle created by and for the millennials, but it’s also just in time for people planning their retirement. It will have profound effects on our experiences, expectations, financial planning, and how we prepare for the future. In addition, it may be the promise to living a better and more independent lifestyle as we age.

Talk to your Core Advisor to discover how you can plan for your lifestyle expenses to enjoy your dream retirement.