Tri City Monthly Income Mortgage Trust
About the Trust
The Tri City Monthly Income Mortgage Trust operates as a licensed and regulated mortgage lender, 100% owned by its investors. Under the astute management of Tri City Fund Management Ltd., the trust diligently underwrites and funds each loan with a commitment to maintaining the upmost prudence. The maximum loan-to-value ratio is capped at 75%. Exceptions to this rule require unanimous approval from the Credit Committee and are considered only in rare circumstances.
As an equity lender, the trust’s rates may exceed those of traditional banks. However, borrowers willingly choose the Tri City Monthly Income Mortgage Trust due to our streamlined lending process and straightforward guidelines. Some borrowers may be embarking on real estate projects necessitating short-term improvements to enhance property value before resale or refinancing. Others may face temporary credit challenges resulting from factors such as immigration status or self-employment, rendering them ineligible for loans at major bank rates.
The trust is also a bridge lender and provides interim financing, affording borrowers the time needed to reorganize and qualify for more cost-effective funding. Our management team employs common-sense practices, prioritizing exit opportunities, equity cushions, and the borrower's ability to meet financial obligations.
Unlock Smart Investment Opportunities
Are you seeking a savvy investment strategy? The Tri City Monthly Income Mortgage Trust presents a novel opportunity for investors to participate in the residential, commercial, and industrial mortgage markets of Western Canada. Our fund strategically invests in a meticulously curated pool of diversified mortgages, with the primary objective of delivering a consistent monthly income distribution while safeguarding the underlying capital.
Diverging from traditional equity and fixed-income investments, our fund provides investors with exposure to mortgage markets that were once exclusive to large institutions and pension funds. By pooling funds within a mutual fund trust, we gain the flexibility to invest in various types and sizes of mortgages across different sectors and markets, thereby enhancing returns and mitigating risk. Our mortgage trust encompasses a diversified pool of mortgages, including both first and subsequent-security conventional mortgages.
The Tri City Monthly Income Mortgage Trust concentrates on residential mortgages in urban liquid markets known for their stability and reliability. Our overarching goal aligns with the typical objectives of mortgage trusts — to furnish relatively high yields while safeguarding the underlying capital of our valued investors.
Fund Details
INVESTMENT OBJECTIVE
The potential to earn a steadier, consistent monthly distribution of income while preserving invested capital, with a projected yield of 8+%* for 2023, net of management fees.
CURRENT INVESTMENT OPPORTUNITY
Series A-3 - “Profit Participating” Trust Units: Projected return is 8%* return, plus the potential for profit sharing.
Series P - “Preferred” Trust Units: Returns are paid in priority to Series A-Units and are benchmarked with the Bank of Canada yields. Only available to Institutional and Accredited Investors. Please inquire for more information.
PROFIT PARTICIPATION UPSIDE
Profit Participating A- Series Unitholders are entitled to 70% of the Trust’s profits earned above the hurdle rate. The Fund Manager earns the remaining 30%.
ALIGNMENT WITH INVESTORS
All lender fees are paid to the Trust.
FIRST INVESTOR
Tri City Capital Corporation, fully owned by Michael Goodman, has invested the first $1 million in A-1 Trust Units, which are subordinated to all other investors. Tri City does not receive its distributions until after P- Series Unit holders receive theirs, and then A-Series Unit holders receive theirs.
INVESTMENT STRATEGY
Capital is invested in a diversified portfolio of carefully selected short term mortgages, primarily residential and residential-construction mortgages in urban markets of Canada. Unless unanimously approved by our Credit Committee, loan-to-value ratios will not exceed 75%. This provides a significant buffer between the loan amount and the property’s value.
FREQUENCY OF PAYMENT
Monthly, in cash or reinvested.
RRSP ELIGIBILITY AND TAX TREAMENT
RRSP, RRIF, TFSA, RESP and LIRA eligible. Existing registered plans may be transferred into the Trust. For tax purposes distributions are treated as interest income.
MINIMUM SUBSCRIPTION
10 Units - $10,000 (excluding institutional units)
MANAGER
Tri City Fund Management Ltd.
MANAGEMENT FEE
Starting at 1.25% per annum (may be higher for different series units)
*E. & 0. E. All return figures are based on annual returns assuming reinvested distributions. The securities referred to herein are being offered by offering memorandum and accredited investor exemptions and only to investors who meet the investor eligibility criteria described in the offering memorandum and as determined by securities regulations in the applicable jurisdictions. All information herein is qualified by the information container in the offering memorandum, which should be carefully reviewed by prospective investors with advice from their professional advisors. This document is preserved for information purposes only and does not represent a formal offering. In this ultra low rate environment, only A-3 units are being sold, with a projected, distribution of 8% (if reinvested). A-1 units on a per annum basis based on distributions re invested for one year. Others units distributed different return. First years were not full years so an extrapolation has been calculated from monthly to yearly for first start up years.
