“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.