Pioneer West Investing
Real estate lending is typically low risk and high return, making it an ideal investment option. We offer a range of mortgage investments and services including private lending, pooled funds, and investment advisory, administration, and management services. Put your investment funds to good use in the capable hands of our mortgage investment professionals.
Mortgages have traditionally been the preferred investment for banks; in fact, government regulations for trust companies and banks require a large percentage of their assets be based in either conventional or NHA insured mortgages. (Conventional mortgages are mortgages where there is a 20% equity or larger, and NHA mortgages are ones in which the equity is less than 20% and the mortgage is insured by a government approved insurer against default or loss to the bank.)
Mortgages are similar to bonds in that they are debt instruments whereby the investor’s return is derived from a predetermined, agreed upon return (the interest rate). They have security in the form of real estate (preferable to the security provided in bonds which are an unsecured corporate loan,) and the yield is typically greater than a bond. Mortgages offer the security of a blue chip bond (very low level of risk) and a locked in yield like a GIC but at a much higher return.
Types of Investments
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PWAC Deck (click to download)
A Mortgage Investment Corporation (MIC) is a pool of investor funds dedicated to investing in mortgages. Every MIC has its own terms and guidelines, therefore it is very important to find the right MIC that matches your investment profile and goals. It is a passive investment, meaning you don't have to manage it on a daily basis. Dedicated and experienced fund managers are overseeing the portfolio on the shareholder's behalf. Every MIC has a history. Let Drake Financial assist you in assessing a MIC suitable for your goals.
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PWMIC (click to download) -
You have the ability to invest as a private lender in the mortgage industry. Your investment will be secured by a mortgage of real property and you choose the property, terms and conditions that you wish to invest in. This type of investment is considered more high risk because you are not sharing this default with other investors. However, there is the potential for a higher return as the management fees are lower. These investments are RSP, TFSA, RESP, RRIF eligible.
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