Squire Mortgage Investment Corporation

Transcription

1 Squire Mortgage Investment Corporation

2 Retirement Enjoy Life

3 Canadian Real Estate: Long-term Steady Growth Stock market volatility World Economy Unstable Growing population and economy = continuous housing market growth

4 Reno & Flipping Houses? Rental Property Management? Or you may rely on reputable professionals to generate safe and secured steady cashflow Squire Management Inc. is licensed as a Mortgage Administrator by Financial Services Commission of Ontario (FSCO License #12565)

5 What is a MIC?

6 Squire MIC Business Model

7 Squire MIC focuses on high interest 2nd mortgages

8 2nd Mortgage = Higher rate = Higher return to investors private 2nd mortgages average 12-14% private 1st mortgages average 6-8%

9 Why do homeowners borrow 2nd mortgages? For many reasons borrowers cannot obtain the full amount they require from a bank Because the loan amount is often small. For example: $50,000 loan at 12% is only $500/month in interest payments

10 Squire MIC helps homeowner s dreams come true

11 Example: Purchase price = $500K Downpayment = $100K Bank Approval = $350K 1st mortgage Minimum Risk Affordable Homeowner s dream house Squire MIC approves $50K At 12% Monthly Interest = $500

12 Canada s Strict Underwriting Rules Borrowers must typically pay 20% of the purchase price Highest Loan to Value Ratio is 80% without mortgage insurance Strict credit check and affordability test Borrowers repayment ability must be established Loan must be backed by quality Canadian Real Estate

13 Squire MIC Opportunity - Great Location Great Timing Squire MIC headquartered in Waterloo, ON Tricities - Kitchener/Waterloo/Cambridge - the economic engine of Canada Affordable housing and great jobs Tricities property values rose by 20.7% during 2nd quarter of 2017* Tightening Mortgage Rules MIC s are a growth market Reference Data URL:

14 Squire MIC - Safe and Secured If defaults occur, Squire MIC can sell the property to repay the loan No loss since inception Never lend more than 85% of the property value (weighted LTV approximately 75%) Never lend for more than a 1 year term on residential properties Invest in areas with growing real estate values and stable employment. Avoid situations where a loss may occur

15 Squire MIC Strategy - Minimal Risk Owner Occupied Rental Property

16 Any Potential Risk? Any investment carries some potential risk. In Squire MIC s case 2 things would have to happen for the fund to lose money on a specific loan Homeowner is unable or unwilling to make payments AND 2. The property value falls by more than 25% within 1 year on a 75%* LTV mortgage *Squire MIC has historically maintained an average LTV of approx. 75%

17 Risk Protection - Strategic Diversification The Fund has met the annual Target Yield of 8.00% since inception Target Yield with Reinvestment Plan = 8.24% The Fund has never incurred a loss on any loan Dividends Paid Quarterly Target Yield for a $100K Investment is $8,000 per year Yield of $8,243 With Reinvestment

18 Why Squire MIC? Management are trusted names among investors 100% of net profit distributed to investors Stable yield Not correlated to equity markets Offers attractive returns compared with other income funds Focused on growth market with huge potential Risk diversification to preserve investment capital Consistently delivers target rate of return Have been helping many homeowners to have their dreams come true.

19 Squire MIC Management Chris Waters, President Dave Chornaby, Vice President

20 Many Portfolio Managers recommend 10% of investment portfolios be invested in alternative funds If you would like to learn more about Squire MIC a representative from one of our EMD or IIROC partners will arrange a time to speak with you and answer any questions you may have. If you are interested in an investment, they will review your objectives and provide you with information on how to invest if you are eligible.