Investor Relations

Why invest with us?

We offer flexible investment terms paying highly competitive interest rates.

Lock in for one year or longer and your rate of return rate will fall between 13% and 15% paid annually. You can also opt for monthly interest payment option to be paid an interest rate between 10% and 12%.

The private mortgage industry is a very real and important source of return on investment for the private investor. It is an equally important source of funds for the borrowing public. The private mortgage market allows the investor to earn substantially higher yields on an investment than banking institutions – while offering the security of real property as collateral on your investment. First Capital Corp. specializes in the private market and offers you, the private investor, and an opportunity to participate in this lucrative field of investment.

What is a private mortgage investment?

A private mortgage is an investment by private investor (lender) funding a real estate transaction instead of an institution like a bank or trust company. Like a bank, the investors receive a mortgage from the borrower as security for their investment. The borrower’s property is used as collateral for the loan.

How does it work?

Once the lender(s) and the borrower have mutually agreed to a specified interest rate and the terms of the mortgage; all documentation, security registration and disbursements of funds are handled by both party’s representing lawyer, just like a conventional bank mortgage. The investor usually assigns its own appointed independent appraiser to access the value of the property to ensure the actual market value before the transaction is completed.

Usually the minimum amount is $5,000 and there is really no maximum amount depending on the property.

How is it different from other investments?

Having the borrower’s real estate as security on an investment is a unique advantage. Unlike sticks or mutual funds, mortgage investments offer stability and consistent returns.

Real estate values are much less volatile than the stock market and a mortgage contains a predetermined interest rate so than an investor knows what return to expect; each and every month.

What kind of return can I expect?

Contact us for more details.

How do I get paid?

Monthly income is generated to the investor by interest payments (without principal) from the borrower and is usually paid monthly.

When the mortgage matures, usually within 12-24 months, the original principal is returned to the investor upon maturity of the contract.
Why doesn’t the bank do it?
Borrowers usually turn to private investors for a number of different reasons:

· Short term or bridge financing needed

· Borrowers with poor or no credit

· Fencing foreclosure with a 120-day or 180-day delinquency, who are looking for a new loan to pay off their current mortgage

· Self-employed individuals who can’t verify their income; and

· Homeowners who want to refinance a mortgage and receive an extremely large cash payment

What are the risks to me and how am I protected?

Private mortgage lenders have the same legal recourses and security as the banks do. Your investments are backed by real estate properties across the GTA. As a guideline, our private mortgages do not exceed the loan to value 80% to 85% of the appraiser established market value of the property.

What happens if the borrower defaults on the mortgage?

In the case of a default, First Capital Corp. would provide consultation to the investor, and help the investor take legal action against the borrower [very much like the bank] by putting the property under Power of Sale or Foreclosure.

All legal cost and disbursements incurred can be recouped through the proceeds from the Power of Sale. Under such circumstances, the lenders can recover the initial capital investments, some interest, and reasonable cost from the proceeds of the sale of the property. Are mortgage investments right for me?

No one can answer this question for you. We can, however, share with you the profile of the typical mortgage investor to help you decide.

A good candidate to invest in a mortgage is someone who is looking to maximize their returns without subjecting their money to unnecessary volatility and uncertainty.

They want an asset, in this case real estate, backing their investments. They are not looking to hit a “home run” but instead want stability and a good consistent return.

They are happy to trade a predictable return for less volatility and uncertainty. They may need or would like the option to take monthly income.

Finally, they want to keep their options open by not locking up their money for a long time.

Does this sound like you?

If so, then you should learn more by contacting us.

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