Frequently Asked Questions

To allow individuals to collectively invest in a diversified portfolio of residential, construction and commercial mortgage loans across Canada which preserves their capital and generates attractive monthly returns.

The objective of the Trust is to enable an individual to achieve the benefit of working with a group –  preserving capital and generating attractive monthly returns. These objectives are only possible to achieve by enabling individuals to act as a part of a group. Individuals cannot achieve these results because, for example, many first mortgages are approaching a million dollars in Vancouver. In addition, in order to get consistent quality mortgage opportunities presented to an investor to pick through in order to select quality opportunities the investor needs to be able to fund one mortgage after another in rapid succession. That means the investor/lender needs a reputation with mortgage brokers as a lender who lends on quality loans when a broker brings a mortgage opportunity. The brokers will not bring quality mortgage opportunities to individuals who have money one day, but are drained the next.

The objective of the Trust is to enable an individual to achieve the benefit of working with a group –  preserving capital and generating attractive monthly returns. These objectives are only possible to achieve by enabling individuals to act as a part of a group.  Individuals cannot achieve these results because, for example, many first mortgages are approaching a million dollars in Vancouver. In addition, in order to get consistent quality mortgage opportunities presented to an investor to pick through in order to select quality opportunities the investor needs to be able to fund one mortgage after another in rapid succession. That means the investor/lender needs a reputation with mortgage brokers as a lender who lends on quality loans when a broker brings a mortgage opportunity. The brokers will not bring quality mortgage opportunities to individuals who have money one day, but are drained the next.

Mortgage Trusts of more than 150 participants, unlike Mortgage Investment Corporations can hold the assets long term, if they so desire.  Mortgage Investment Corporations are prohibited from doing so.  It is the reason we have selected a mortgage trust vehicle in which to hold the mortgage assets on behalf of the investors.

• Preferred Series P Units

• Profit Participating Series A Units

  • Preferred Series P Unitholders are entitled to receive a Preferred Return set at 6% to December 31, 2016, which will be     automatically reset annually thereafter at the 2-year Government of Canada Bond yield, plus 480 basis points, and do not share in the balance of any Net Revenue. This return is paid to Series P Unitholders in priority to Series A Unitholders.
  • Profit Participating Series A Unitholders are entitled to receive the monthly Base Distribution, targeted at 8% per annum and the balance of the Net Revenue.
  • In a liquidation event, Series P Unitholders will be entitled to be paid in priority over any distribution or payment to Series A Unitholders and Tri City Capital Corporation.

$10,000 which is the equivalent of 10 units of a Series.

No loan will exceed 75% loan-to-value ratio, except in rare circumstance and by unanimous approval of the Credit Committee.

• A completed subscription form is signed and submitted to the Trust Manager.

• Two copies of signed Risk Acknowledgement Forms 45-106F4 and Appendix A to BC Instrument 32-513 accompany the subscription form.

• Either a certified cheque payable to Tri City Group Monthly Income Mortgage Trust or a wire transfer payable to Tri City Group Monthly Income Mortgage Trust is submitted to the Trust Manager.

• Payment can be made from a self-directed RRSP, or other registered plan, by the trustee of a self-directed plan. 

Mortgage trusts are appropriate for investors seeking a capital preservation strategy with higher yields and a consistent stream of income which is generated based on mortgage security over specific pieces of property.

  • A BC, AB, SK, MB, resident having received and read a copy of the offering memorandum and is prepared to sign the risk acknowledgement form.
  • An accredited investor as defined in National Instrument 45-106.
  • A close friend, family member, business associate or affiliate of a director, executive officer, founder or control person of the Trustee, provided that no sales fee is paid to such person.

• Notice seeking redemption must be delivered to the Trust no later than the 15th day of the month before the quarter end.

• Payment of redeemed units will be made 60 days after the end of the preceding quarter in which the redemption notice was received, with the exception of December 31st where payment of redeemed units will be made 90 days after year end. 

Tri City Capital Corp, a company controlled by the principal, Michael Goodman, has invested $1 million to purchase 1,000 Series A units.  Since Tri City Capital Corp. has invested in Series A Units, all Preferred Series P Unitholders will get their distribution prior to Tri City Capital Corp. getting any of its distribution.  This presumes there is enough interest and fees to pay the Preferred Unitholders.  In addition, the $1 million investment will act as a buffer to all unitholders in the event of a liquidation event where the Trust has to close down.  In such an instance, Series P Unitholders will be paid first.

The Trust’s expenses include advertising and promotion, selling, administration, and overhead incurred to operate the Trust.

Distributions will be paid monthly in arrears on the 15th day following the end of the month.  The December 31stdistribution will be paid on the 60th day following the end of the quarter.  At the investor’s option to be exercised on an annual basis, distributions can either be paid in cash or in a reinvestment into additional Series A units.

Management fees are 1.25% of Net Asset Value.  This is one of the lowest management fees in the industry.   The Manager also receives 30% of all returns above the 8% paid to Series A Unitholders as a performance incentive; the other 70% is paid to Series A Unitholders.

Investments will be redeemed at:

• 94% of the Subscription Price during Year 1

• 95% of the Subscription Price after Year 1

• 96% of the Subscription Price after Year 2

• 97% of the Subscription Price after Year 3

• 98% of the Subscription Price after Year 4

• 99% of the Subscription Price after Year 5

• 100% of the Subscription Price after Year 6

wamiqFrequently Asked Questions