How to Invest
There are three simple ways for investors to participate in our investments.
1. Syndicated Mortgages
Liberty's syndication structure is similar to that of banks which syndicate loans in order to participate in multi-billion dollar loans while limiting their individual risk.
Under Liberty's structure, individual investors place funds in trust with Liberty to be combined with other investor funds in regard to a specific mortgage investment. These funds are collectively loaned out to an approved borrower based upon the terms as outlined in the mortgage summary provided to investors. Individual investor holds their proportional undivided interest in that specific mortgage.
Investors are offered returns on their mortgage investment of up to 10 to 14 per cent, per annum for first mortgages and 14 per cent or greater for second mortgages. Each investor receives their pro-rata share of all monthly mortgage payments. Each investor receives their pro-rata share of all monthly mortgage payments with Liberty acting as trustee and administrator over the loan.
2. Individual (Non-Syndicated) Mortgages
In some instances larger investors choose to individually fund or joint-venture fund a particular mortgage. This structure is almost identical to the syndicated structure except that the investors themselves fund the entire loan and are registered on title. This structure is typically reserved for Liberty's larger investors and/or institutional investors.
Rather than have a $1 million mortgage funded via syndication amongst a dozen or so investors, two or three investors may directly joint venture fund this mortgage. Each investor receives their pro-rata share of all monthly mortgage payments with Liberty acting as trustee and administrator over the loan.
3. Diversified Mortgage Pools - Mortgage Investment Corporation (MIC)
Under this structure, investors purchase shares of one of Liberty's MICs rather than an interest in a specific mortgage. This structure can best be described as a mutual fund of mortgages.
A MIC is a corporation with assets consisting of a pool of funds for the exclusive purpose of mortgage lending. All mortgage investments within the MIC are first approved by the MIC's credit committee. As required by Revenue Canada, all net interest income earned by a MIC must be flowed through to its shareholders on an annual basis.
MICs typically charge a management fee of between 1.5 and 2.5 per cent. The result is a well-diversified pool of mortgages typically providing a net return to investors of 8 to 10 per cent per annum.
Liberty controls and/or is affiliated with several MICs. Further details including by-laws, financial statements and rates of return to investors are available upon request.
Learn more about the Investment opportunities available today.
Invest Today
To speak to one of our valued investment specialists directly, please contact us today to learn more.