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Frequently asked questions
How long have you been working with private investment capital?
We have worked with many investors since the year 2000. Since that time we have initiated over 150 (independent) Canadian real estate transactions; each transaction was performed utilizing private investment capital. Our investors have ALWAYS received their original investment capital back, as well as the pre-determined fixed rate of return. What rate of return can I expect to receive on my investment capital?
We offer a fixed, predictable, annual rate of return. Unlike some types of investments, our rate of return is NOT "averaged"! Averaged rates of return can be somewhat misleading. For instance, the last year or two of an investment may not have performed too well at all, but by factoring in a few "good years", the investment may indeed average quite well. We offer two rates of return: We offer 10.5% for those investors that wish to receive 6% (annualized), paid on a monthly basis, with the balance (4.5%) paid at the end of the investment term. This works well for investors that require income support such as retirees, or for those investors that are leveraging equity or their credit worthiness by utilizing an equity or personal Line of Credit from a bank, and would like the monthly payments to cover the interest payments. This is a GREAT way of making money with the banks money! For those investors that prefer to receive a higher rate of return, but do not require monthly income, we offer a fixed 11.25% rate of return. What is my investment capital used for and how secure is it?
We invest only in CANADIAN Residential Real Estate. Your investment capital is secured by a portfolio primarily composed of first mortgages with loan to value (LTV) ratios in the range of 65-85%. By investing in CANADIAN first mortgages, your hard earned investment dollars are generating exceptional returns on some of the safest investments available today! That’s why the BIG banks only play in this arena. They leave the second (lower security) mortgages to other (sub-prime) or mortgage insurance companies like CMHC. In other words, they the let others take on the higher risk! Is my return on investment guaranteed?
In accordance with securities regulations we cannot tell you that your investment is guaranteed. What we can tell you is your investment capital and the return that we are offering is "PREDICTABLE". (See the second FAQ above.) How can you say there is a predictable return?
We control the investment process from start to finish. We invest only in Canadian residential real estate. We do not speculate on land development, vacation properties, secondary residences or commercial real estate, as we feel there is more uncertainty associated with this type of investing and choose not to invest in them. Do you charge any management fees?
No, we do not. In contrast to other types of investments that are offered, we do not charge redemption or administration fees. There are no surprise fees for the investor! Can I get my money back if I need it?
Yes you can. We understand that people are faced with certain (unforeseen) situations, where you may need to have direct access to your investment capital. Unlike some types of investments, your investment capital is NOT tied up for lengthy periods of time, rendering it inaccessible. With sixty days written notice, you can redeem all of your capital with NO fees or penalties associated with this request. This is another great and unique feature that we offer our investors! What is the term of this investment?
The investment term is for 12 months. If the investor chooses to stay in for a longer period of time we will be happy to accommodate. What is the minimum and maximum amount I can invest?
The minimum investment amount we accept is $10,000; there is no maximum. Who can invest with Creative Housing Solutions Investment Corporation?
An individual or corporation that meets the eligibility requirements according to their province of residence can invest. To determine eligibility, investors can consult Form NI 45-106, available on the Alberta Securities Commission website. The Alberta Securities Commission website is www.albertasecurities.com What are the benefits of using a line of credit to invest with Creative Housing Solutions Investment Corporation?
There are many benefits of using a line of credit to invest with us. As most people know, there are two types of debt: GOOD debt and BAD debt. BAD debt is the type of debt people accumulate when purchasing things which do not increase in value or generate an income stream. Essentially, it takes money out of your pocket! On the other hand, GOOD debt is the type of debt people use to accumulate assets which increase in value, or generate an income stream. GOOD debt puts money into your pocket! By using a line of credit to invest with Creative Housing Solutions Investment Corporation, you are using GOOD debt because you are generating an income stream! This is known as the 90-10 rule: 90% of all people use debt to become poorer, while 10% use debt to become richer! Many Canadians have a large amount of their personal net worth accumulated in their home, yet their home equity is not making them any money! By making use of their accumulated equity, investors can enjoy the POWER of LEVERAGE by having the bank’s money work for them! How is my investment taxed?
Every investor is a unique taxpayer, so each investor should consult with their accountant or tax lawyer to understand their specific situation. All monies paid to investors are deemed dividends. Investors will be issued a T5 slip for their current year income tax return. Who do I contact for further information?
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