How long has Antrim been Managing MICs?
Antrim has been helping investors participate in private mortgage lending since 1973. In the early 1990's, Antrim's existing investors requested the company start up a MIC so as to simplify the mortgage investing process. In 1993 Antrim incorporated its first MIC, Tralee Investments Ltd. Currently, Antrim is managing four MICs.
How does Antrim Investments Ltd. find mortgages to invest the MIC's money in?
Antrim Investments Ltd. is an active mortgage broker. Antrim uses its large network of broker contacts to continually fund mortgages within the MIC. Antrim has a qualified team of underwriters who screen applications and only approve those mortgages that meet the funds criteria as approved by the elected Board of Directors.
What risks are associated with investing in a MIC?
Although real estate investing is considered one of the safest investments, risks still exist in mortgage lending. All Real Property investments are subject to elements of risk. Real Property value is affected by general economic conditions, local real estate markets, the attractiveness of the property to tenants, competition from other available properties and other factors. While independent appraisals are required before the Corporation may make any Mortgage investment, the appraised values provided therein, even where reported on an “as is” basis are not necessarily reflective of the market value of the underlying real property, which may fluctuate.
The corporation’s income and funds available for distribution to security holders would be adversely affected if a significant number of borrowers were unable to pay their obligations to the Corporation. On default by a borrower, the Corporation may experience delays in enforcing its rights as lender and may incur substantial costs in protecting its investment.
To mitigate these risks, the experienced team of underwriters at Antrim carefully review every application to reduce the possibility of non performing loans. Furthermore, strict loan to value guidelines ensure enough equity is available to recover outstanding loan balances in case of foreclosure.
When can I redeem my Shares?
Investors are able to redeem all or a portion of their shares whenever they wish subject to funds being available in the cash account of the fund and subject to the rules set out in the offering memorandum / corporate articles. Usually, amounts of $25,000 or less can be withdrawn with a few days notice. However, redemptions of $100,000 or more can take up to 120 days as outlined in the offering memorandum / corporate articles.
How is Antrim Compensated for Administering the MIC?
Antrim administers the MIC via a management agreement signed between the MIC and Antrim. As part of this agreement, Antrim receives a management fee ( expressed as a percentage of assets ) based on the outstanding mortgage balance of the portfolio on the last day of each month. The MIC pays for all legal, accounting and other associated operating costs during the year while Antrim is responsible for costs relating to the acquisition of mortgages purchased by the MIC.
How often do Investors receive information on the MIC?
Investors receive audited financial statements at the end of every fiscal year. Furthermore, whenever an investor makes a transaction on their account they are presented with an updated statement of account. Investors are encouraged to attend the AGM.
What type of Mortgages does the MIC invest in?
The MIC focuses on residential mortgage loans within major centers of British Columbia. Small commercial loans are also included in the portfolio when they would benefit the MIC. The majority of mortgage receivables are comprised of first mortgages with the balance being made up of second mortgages. Almost all mortgages in the MIC have a one or two year term and are renewable at the borrower's discretion. The MIC collects three months interest charges on mortgages paid out before the end of the term.
What is the expected return of the MIC?
It depends. However, within the current interest rate environment, returns in the 6% - 7% range are reasonable to expect. Talk with an Antrim representative to learn more about what determines the rate of return earned by the MIC.
How do I start investing with Antrim?
It's easy. Call 604.530.2301 today and talk with one of our investment representatives.