Targeted Annual Return
Term:
5+ Years
Product Type:
Secured by cash flow positive apartment buildings
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Targeted Annual Return
Term:
5+ Years
Product Type:
Secured by cash flow positive coverted duplex/ triplex
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Targeted Annual Return
Term:
12~24 Months
Product Type:
Secured by under market value assets
Targeted Annual Return
Term:
12 Months or Less
Product Type:
Secured by a single asset
Targeted Annual Return
Term:
Enter and Exit Anytime
Product Type:
Secured by a portfolio of assets
Targeted Annual Return
Term:
12 Months
Product Type:
Secured by a portfolio of motor vehicle accidents
Over the years, we have built unparalleled access to off-market deal channels. We have access to the best assets before they are even listed on the open market, which is why our risk adjusted returns on assets are one of the highest in the industry in the same asset class. We lower the barrier of entry for you to own a piece of this market. We allow fractional ownership and we make real estate investing affordable.
We believe in acquiring and operating a hand-picked selection of a few top-notch assets every year, rather than managing a massive volume of mediocre assets. We pick the best and let go of the rest.
We take care of everything from due diligence, asset acquisition, building design, permit applications, construction, rental management all the way to exit, without you lifting a finger.
Other syndication platforms simply raise funds for partner asset operators, meaning neither you nor the platform have control over how the asset is being operated and managed. Project success and profitability is largely dependent on the partners, which is a significant risk. We are actually the platform and the operator in one. We have direct control over our assets, such as acquisition and construction. This in-house model reduces your risk significantly.
Detailed financial reporting with line items from the beginning of an asset lifecycle all the way to exit are shared at all times. Frequent informal updates as well periodic audited reports are also always available. Construction progress is recorded on multimedia and available online on a bi-weekly basis. We even have asset open door days for on-site visits by investors.
On average we underwrite about 250+ deals that come to us every year. Out of that, we only acquire about 20 assets per year, making it an average acquisition ratio of 8%.
This is a great building, in an up and coming area, with price per door below market price. All interior structures can be rebuilt and full renovations can be made to maximize cash flow.
This is a great building, in an up and coming area, with price per door below market price. Some units can also be converted to add additional bedrooms to maximize cash flow.
This is a great building, in an up and coming area, with price per door below market price. Some units can also be converted to add additional bedrooms to maximize cash flow.
This is a great building, in an up and coming area, with price per door below market price. The building is divided into three self-contained sections with six units each. Some units can also be converted to add additional bedrooms to maximize cash flow.
This is an A+ building, in a great area, and only a few minutes walk away from the lake! Some units can also be converted to add additional bedrooms to maximize cash flow.
Multi-Family is a classification of housing where more than 4 separate housing units for residential inhabitants are contained within one building. Units can be next to each other or stacked on top of each other. A common form is an apartment building.
Here is a simple formula you can use:Property Value= Annual Net Operation Income（Annual Rent Income-Operation Cost）/ Cap Rate In other words, the value of Multi-family is affected by NOI (Net Operation Income) instead of comparable building’s sale price. This is the reason why Multi-family can be more profitable than single dwelling investments. In conclusion, the key to Multi-family is Cash Flow. If we set the Cap Rate at 5%, then a $1 increase in NOI will bring about a $1 ÷ 0.05 i.e. $20 increase in building value, which is a 20-fold increase! (relative to cash flow)
1. The strong rental income can help you cover your property ownership costs, or simply increase your cash flow. It can also help you pay off your mortgage sooner, thereby saving yourself interest over the life of your loan.
2. If you own a single-family home and it goes vacant for two months, guess who will be paying the mortgage? YOU. But if you own a 6-plex and two tenants decide to vacate, you still have four rental streams coming in to cover the expenses.
3. You have much more control in a Multi-family property to manage the appreciation of the property by driving up the net operating income (NOI)
4. You can take advantage of tax benefits through a group purchase under a holding company
The main risk you should consider is that if the housing market is going down, or the appreciation is smaller than projected which means the targeted estimated return will be lower.
1. We acquire buildings usually at discount, that need renovation to add value to the asset;
2. After all due diligences is done and the deal is closed, we proceed to evict or turnover tenants;
3. We complete renovation then we put new tenants in with higher rent to increase cashflow; We call this stabilization period;
4. Value of Asset and monthly cash flow will increase
5. Refinance the asset to lower overall investment dollars, increase ROI as well as free up partial funds for other investments.
Then Repeat the Refinance process until the total initial capital is paid back, then every dollar you get from this property will be your pure profit. This way you have 0 dollar in this building while you still own it.
Entity holding the asset will be registered on title.
Management company’s responsibilities and efforts of sourcing deals, managing renovation, financing, asset, exit and etc. are considered as the shares of the partnership and are entitled to certain percentage of the property AFTER investing partners’ principal are paid out in full. The management company will only benefit from the remaining percentage from the net positive cash flow and ownership going forward. The percentage of the structure between management and shareholders are set on a case by case basis depending on the asset.
We will refinance right after the renovation, then refinance periodically until we fully pay out the principal to our investing partners. Afterwards, we are generally looking at 5 years or until 25% appreciation, whichever comes first to exit. After your principal is paid back, you will get free cash flow from the property and can put in a new deal to add to your asset base by repeating the exact same process. Moreover, regarding the exit strategy, since you get all free cash flow every year, you can consider whether it is necessary to sell the property or keep owning the property and getting the free cashflow.
Conversion is the strategy to lawfully add suites to an existing asset (typically a single-detached house) to achieve the following 2 main goals:
1. Enjoy prescribed appreciation of property value immediately.
2. Own and hold property with positive or natural cashflow in a highly appreciating area that is otherwise unaffordable.
We manage everything from asset acquisition, construction, refinancing, property management to exit.
The construction takes about 6 months for a standard conversion process. From asset acquisition to exit, the timeframe is 5+ years depending on the market and investor preference
Bill 140, Strong Communities through Affordable Housing Act, 2011 - from Legislative Assembly of Ontario. But this doesn’t mean every municipality is compliant or allows secondary suites, so you have to know which ones do and which ones don’t.
Safety
Higher rent
Reduced risks
Higher resale price
Complaint reduction
Avoid Shutdowns or Fines
Mortgage Qualification
Comfort of living
Quality tenants
The main risk you should consider is that if the housing market is going down.
1. Purchase suitable property only in specific areas: downtown/Durham
2. Management Company finishes due diligence and closes the deal
3. Design, obtain legal permit, construction, complete renovation
4. Additional units are added to the asset
5. Transform the asset into Duplex/Triplex
6. Rent to qualified renters in legally separate suites to achieve cashflow coverage for holding
7. Refinance to take some equity out based on the forced appreciation to invest in the next asset if desired. This also lowers the overall investment dollars, increases ROI as well as freeing up funds for other projects
1. By-law and code compliance check
2. Produce permit materials (floor plans, elevations, sections, details, constructions specs etc.)
3. Submit permit application
4. Construction/Renovation
5. Inspections and final approval
Entity holding the asset will be registered on title.
Management company’s responsibilities and efforts of sourcing deals, managing renovation, financing, asset, exit and etc. are considered as the shares of the partnership and are entitled to certain percentage of the property AFTER investing partners’ principal are paid out in full. The management company will only benefit from the remaining percentage from the net positive cash flow and ownership going forward. The percentage of the structure between management and shareholders are set on a case by case basis depending on the asset.
We will refinance right after the renovation, then refinance periodically until we fully pay out the principal to our investing partners. Afterwards, we are generally looking at 5 years or until 25% appreciation, whichever comes first to exit. After your principal is paid back, you will get free cash flow from the property and can put in a new deal to add to your asset base by repeating the exact same process. Moreover, regarding the exit strategy, since you get all free cash flow every year, you can consider whether it is necessary to sell the property or keep owning the property and getting the free cashflow.
Private lending is basically you directly lend the money to the borrower for an above-average return using the borrower’s real estate asset as the collateral. You basically act as the bank. It includes many different ranks of deals, such as First Mortgage and Second Mortgage.
A second mortgage is a lien on a property that is subordinate to a more senior mortgage or loan. Second mortgage generally comes with a higher interest rate than first mortgages. This is because if the loan goes into default, the first mortgage gets paid off first before the second mortgage.
There are several reasons that people need to borrow private mortgages. For example, Real Estate Entrepreneurs leverage Private Lending to invest in real estate and bring a portfolio of assets as collateral; people with poor credit and low income couldn’t qualify for a mortgage from the bank but can have significant equity in their properties as collateral for a private mortgage.
Our lenders typically get an annual return of 8-13%, sometimes even more, which depends on different deals.
Typically a private mortgage has a term of 12 months or under. The principal usually will be repaid at the end of the term. The most prevalent exit strategy is refinancing at the bank when credit is repaired after 1 year and the property appreciates as well.
Entity holding the assLTV is loan to value ratio. It's the ratio of the total loan amount on this property (including all existing mortgages, such as first, second, etc. as well as the private funds needed) to the current appraised market value of the property.
For instance, say a property is worth 1 million, and currently first mortgage balance is 600k. If the second mortgage amount is 200k, then the LTV of this deal is determined to be 80%. The lower LTV is, the more equity the homeowner has in the property, resulting in lower risk for the lender.et will be registered on title.
a. Property value, location, condition, neighborhood and days on the market for sale
b. LTV: lower LTV means more buffer for lenders, therefore lower risk.
In addition, we will also check credit score and other personal info etc. just like the banks.
i) All second mortgage will have collateral. We choose GTA and surrounding areas residential properties as the only collateral due to its liquidity and stability.
ii) All lenders will be registered on title.
iii) All lenders will be listed as beneficiaries for home insurance.
iv) Lenders have the rights to commence power of sale.
We have set up a system to electronically distribute the monthly interest to your account.
Yes. You need to report interest income to CRA for tax purposes. Please consult your accountant for your specific situation.
If there’s any Non-sufficient Funds occurred on the payment date during the term, we will issue NSF letter right away and follow up with the situation. Usually, the borrower has a 30-day time window to catch up on the payment. However, if the issue is still not solved, we will commence power of sale.
Sometimes, the borrower will request a renewal for another term or just a few months to wrap up the payout. We will corroborate the value of the property and require them to send us the most recent required documents to underwrite this deal under the current situation, then summarize it for your review to make a decision. In other situations, if the borrower doesn’t ask for renewal or request for discharge by the maturity date, the deal will be considered a default and we can commence power of sale.
After you have finished certain paperwork:
1. Once you see deals that you are interested, request the package immediately. Once you read over them and want to contribute, provide the legal name that will be registered on title, phone number, address and email.
2. Borrower signs contract with lawyer and broker.
3. Lawyer starts preparation of all documents and verification.
4. Lenders fill out all related forms and transfer money to lawyer’s trust account. Then fund will be released to borrower according to instructions in the commitment.
5. A final closing package will be sent to us as your administrator when deal closes.
6. The standard closing time is 5-10 business days at the lawyer’s office.
7. The interest payment will be directly deposited to your personal account every month.
8. Principal returns to lender at the end of the lending period if no default.
MIC stands for Mortgage Investment Corporation, and it is a lending company designed specifically for mortgage lending in Canada. It is governed by Section 130.1 of the Income Tax Act. MIC does not pay corporate tax; instead, MIC acts as flow-through entities and payout all their taxable income in the form of dividends. All MICs are required to register the legal license and meet the specific MIC criteria to become a MIC.
Legally, no one can give a “guaranteed” return unless it’s a government bond. All MIC and other real estate vehicles only indicate a “targeted return”, by law. It is illegal to guarantee the rate of return. Historically, our rate of return for MIC has never been below 8%., and the rate of return of the deals that MIC invested has never been below 8% either.
We start at $25k.
Yes of course. We work with several financial institutions to utilize registered accounts to subscribe to MIC shares, and we will assist you from opening the account to funding.
For both individual deals and MIC, if the borrower stops paying the interest, in the first month, we will issue the NSF letter to the borrower right away after the NSF occurs to notify them of the situation and to pay the missed payment. If they still don’t pay the interest, a demand letter will be issued to the borrowers on the 1st day of the second month to require payments in arrears. In the worst-case scenario that they still do not pay up in the third month, we will direct our lawyers to start the enforcement process and move forward stage by stage in the legal process.
Historically, we have never been to the final stage of the enforcement process as borrowers always end up selling their properties themselves or pay us in full with penalties.
The average legal cost itself ranges between $10k-20k and are paid by the borrowers instead of the lenders. However, the penalties occurred due to the default of first or second mortgages can also be costly. Therefore, we strictly control the LTV to ensure as much as possible that there is buffer for the borrower to cover the legal fees and penalties.
In the MIC program, the dividends will still be continuously paid to our shareholders every month regardless if the borrower makes the interest payments or otherwise. Meanwhile, the NSF letter will be sent to the borrower to notify them to pay the missed payment, or the onward legal process will be initiated by our lawyer if necessary. In contrast, the interests will not be paid to the lenders in individual direct deals (this is prohibited by law).
In MIC, since the ROI of the deals we participated are normally above 8%, we always have reserve funds to pay the dividends to the shareholders. Moreover, if there are any default and penalty occurred, they will also be directed to MIC pool and raise the ROI to our shareholders.
Furthermore, MIC has its own strict lending criteria to protect the shareholders’ interests. MIC underwrites the deals carefully and only lends to the deals that have substantial buffer in the equity. Historically, the average LTV of deals MIC has done is below 75%.
Yes. It will be filed as interest income, and we will issue T5 to you in tax season for you to file your personal tax to CRA.
If you are not a resident in Canada or if you don’t have a SIN yet, you are subject to non-resident withholding tax according to CRA. The tax rate varies upon your residency country.
Yes, unlike private lending, you can subscribe to MIC at any time in the year.
The dividend is calculated from the date that your funds are successfully deposited to MIC’s trust account, and it will be distributed to your own account the following month.
Just contact us, we will send you the instructions and all related forms through email shortly.
Legal lending is used to fund qualifying plaintiffs in motor vehicle accident claims who are expected to receive payouts when the case concludes according to the law. Each plaintiff will receive $5,000 ~ $15,000 to assist them with their medical expenses out of the pool of funds which you will be contributing to.
The legal team representing the plaintiffs are from a well-established law firm in Canada. This legal team previously funded these loans to their clients themselves using the firm’s large line of credits. We have obtained a portion of their portfolio of cases to share with you as a lending opportunity. The unique aspect of this type of lending is that the lawyers will provide personal guarantee.
Legal lending is a type of loan whereby plaintiffs from a motor vehicle accident claim are currently waiting for settlement but require money now for medical expenses before the payout. The types of claims are restricted to motor vehicle claims with the following criteria:
1. Where insurance on the at fault vehicle has been confirmed.
2. There is no argument of fault on behalf of the plaintiff, i.e. no risk of losing at trial, the claim will be paid, it’s just a matter of how much.
3. There is an objective injury confirmed, i.e. medical reports of the injured.
4. The plaintiff is credible and will make a good witness.
5. The claim will be resolved within 12 months.
The plaintiff’s legal team will personally guarantee the repayment of the loan regardless if there is any delay in payout to any of the cases.
If the lawyers were to leave the practice of law for any reason, the loan shall be immediately repaid plus interest to the date of repayment.
If the lawyers were to become disabled, the loan shall be immediately repaid plus interest.
The lawyers guarantee that all the case payouts are protected by After The Event (ATE) insurance.
In the event of death or demise of the entire legal team, the loans would still have a claim to the case payout and will be tracked and repaid when settled.
The cases belong to the lawyers, not the law firm. If they were to leave the law firm, the cases would still be under the purview of the same lawyers.
The Insurance company guarantees the payouts to plaintiffs
Lawyer + Insurance company = Double Guarantee
The ATE insurance is automatically placed on all our files.
This is a “firm-wide” plan and not a “per file” plan – therefore all files are covered.
The priority of the insurance proceeds will be to (i) cover the disbursements first, and (ii) to protect the client against the other side’s legal fees.
If insurance company terminate the coverage immediately, the lawyer will just pull the fund’s money out of that file and the disbursements would then be covered by the law firm.
You and lawyer sign the contract directly
Term: 12-month, open for renewal Interest
Rate: 10% Annually
Upfront Interest Payment: All interest is paid upfront. For example, to lend 100k, lender only needs to send 90k, and the contract is still signed for 100k
End of the term: lawyer will repay the sum on the contract
The number of leading law firms and legal practitioners in BC is more limited compared to other provinces, which lowers complexity and risk.
There is only 1 auto insurance company - ICBC, which is a crown corporation, which also minimizes complexity and risk.
Cindy is a serial entrepreneur in Real Estate. She started her career managing large scale banking projects in Europe and North America. She then joined one of the largest alternative banking institutions in Canada backed by Warren Buffett.
She moved on to build one of the largest real estate communities in Canada, serving thousands of participants managing, operating and exiting over 400 real estate assets.
During the day, she is either checking out new assets, crunching the numbers during due diligence, visiting construction sites or is participating in eviction process. She is passionate about democratizing the real estate world for everyone and making as many people to reach financial freedom as possible so that they can live their dreams too.
Wai is a veteran technical leader and startup founder who brings over 2 decades of technology expertise to MultiRise.
Wai most recently co-founded a startup in Toronto that was acquired by a Fortune 500 company.
Wai began his career in technology with Ericsson Research just prior to the telecommunications industry’s transition to the smartphone era. Since then, he has had extensive experience with designing large scale systems in the telecommunications, workforce management and financial industries, having worked in numerous large scale projects in both technical and leadership roles.
Wai is the co-inventor of 4 U.S. patents.
