Mortgage Investment Corporation (MIC) Services
Investors seeking higher returns than those offered by bonds, savings accounts or guaranteed investment certificates should consider a Mortgage Investment Corporation ("MIC").
A MIC is a pooling vehicle that enables small investors to invest in a diversified pool of residential real estate mortgages while reaping the tax benefits of a corporate structure. Entitled to special nontaxable status under current Canadian tax laws, a MIC is allowed to deduct from its income all amounts paid out to its shareholders as taxable interest dividends. This means larger, regular disbursements to investors.
Please contact us if you would like to review an Offering Memorandum [click here].
RRSP and RPP Eligible
If you are looking for an efficient and effective investment for your RRSP or RPP, consider a MIC. The savings realized by paying no income tax at the corporate level flows through to you. If you choose to place the investment in your RRSP, you do not pay tax until you collapse the RRSP or withdraw funds from the RRSP.
Contact CMS Real Estate Ltd. today to find out how a MIC can work for you [click here].
MIC management
Investors deposit funds into the MIC of their choice and CMS Real Estate Ltd. issues investors shares in the MIC. Accounting is straight-forward and transparent: each investor is entitled to one preferred share for every $1 invested. This entitles the shareholder to their share of mortgage income earned by the MIC. Investors receive 10% interest, compounding quarterly, and dividends are issued semi-annually. Plus, 10% of the MIC profits are distributed to the preferred shareholders. Primarily broker driven, we will, on occasion, work directly with borrowers.
If you require different dividend terms or schedules for cash flow or RRIF payments, we can arrange quarterly and even monthly payments. Contact CMS Real Estate Ltd. to discuss terms [click here]
When investing within a Registered Plan, CMS Real Estate Ltd. will deal with the investor's trustee (usually a bank. trust company or financial institution) to facilitate the deposit of funds into the MIC. CMS Real Estate Ltd. will then provide the trustee with the shareholder's preferred share certificate.
CMS Real Estate Ltd. is the exclusive brokerage for seven MIC funds. We place MIC funds in first, second and third mortgages registered against real estate located anywhere in Western Canada. Primarily broker driver, we will, on occasion, work directly with borrowers.
Before placing MIC funds, a rigorous analysis and underwriting process is conducted by our underwriter who reviews loan applications. If we decide to proceed and fund a mortgage, we prepare an Offer to Fund to the client, and follow up with mortgage instructions. Once all outstanding issues are resolved, CMS Real Estate coordinates funding of the mortgage.
Once funded, CMS Real Estate Ltd. administers all mortgages. This includes diligently monitoring taxes, insurance and, if applicable, other mortgages, to ensure all payments are current and investors' money is secure. If arrears are discovered, we aggressively pursue resolution: from demand letters to collections to full foreclosure.
Syndicated Mortgages
CMS Real Estate Ltd. also specializes in mortgage syndications, whereas money from a specific group of investors is pooled and loaned to – and secured by – a specific project. A syndicated mortgage is different from a MIC. With a MIC, a number of different mortgages may be held. With a syndicated mortgage, only one project can be funded at a time. CMS Real Estate Ltd. handles all administration associated with syndicated mortgages.
If you are a mortgage brokerage or a mortgage broker and are interested in obtaining a mortgage from one of the mortgage investment corporations that CMS Real Estate Ltd. manages, then please refer to our [mortgage brokerage services]
Through market expertise and exacting standards, CMS Real Estate Ltd. plays a crucial role for both builders and investors. If you are looking to fund a development or seeking a unique, robust investment opportunity, [contact CMS Real Estate Ltd.]
