Every project comes with its own projected returns which typically range between 6-12% in targeted net annual returns. Our management fees will be between 1-2%, sometimes coupled with further participation in the profitability of the undertaking. For the investment term, it is project specific and depends on the projected hold period for each opportunity. On our platform, you will find a combination of both syndicated mortgage opportunities and access to real estate investment trusts (REITs) and like funds. Each fund is structured differently with different redemption rights and minimum investment periods. So, to illustrate what a projected return on a $5,000 investment would look like, assuming a range of 6-12% in net annual returns (net means the management fees have been deducted), you could earn anywhere between $300-600 in annual interest distributions. Added to your original principal, your investment could grow to $5,300-5,600 in the first year. This is just simply an illustration though. To understand how each investment opportunity works and what would be best suited for you, we recommend setting up an introductory call with one of our team members and of course consulting with your own professional advisors in due time.
Tag: Getting Started
When are dividends paid?
Dividends and target net annual return depend on the opportunity. In the project listing, we will disclose the dividend frequency and target net annualized return.
How do I invest with a Trust Account?
Part 1: Opening up your Self Directed Olympia Trust Account directly with Olympia Trust and not from the Fundscraper Platform
Step 1: Please note there are annual fees of $150 / year + HST plus a transaction fee of $75 for each transaction in your soon to be set up self-directed registered account.
Create an account here: https://rsp.olympiatrust.com/
Click on ‘New Client’
Step 2: Complete your profile and select which account type you are setting up, TFSA by clicking on the left side panel, ‘Online Transactions’.
Step 3: Review and agree to the Declaration of Trust and Terms & Conditions.
Step 4: Click ‘sign document’ and submit and your self-directed account will be activated.
Step 5: Access your account details by clicking ‘Accounts’ on the left side panel.
Part 2: Funding your self-directed registered account
Step 6: Log in to the Olympia Trust Portal: https://portal.olympiatrust.com/login.
Step 7: Select ‘Online Transactions’ from the side bar menu via web portal.
Step 8: Select ‘Transfer-in’ if you are transferring TFSA funds already in an existing registered account.
Step 9: Complete the contribution / transfer-in specific details including:
Search for the relinquishing institution (where your registered funds are currently at)
Enter account number at that institution (not your Olympia Trust account number)
Select Partial Account Transfer (“cash balance only” or “In-Cash and/or In-Kind as per the below”);
- Transfer Type: select In-Cash (please ensure funds at your other institution is already in cash and not held currently held in investment securities)
- Transfer Details: select NET Amount
- Quantity: enter in the amount of dollars
- Name: enter in the account name
- Select your appropriate Olympia Trust account to receive the funds
- Select ‘Investment Product’ for the Associated Third Party
- Click ‘I accept the terms and conditions’
- Click ‘Submit Transfer-In’
Step 10: Sign the required electronic funds transfer authorization, click ‘Submit’.
Part 3: Purchase Instructions
Step 11: Click on the left hand menu: “online transactions”.
Step 12: Click on “purchase investments”.
Step 13: Search for the Issuer.
Step 14: Enter the number of securities “2,358.490566” = $25,000.00
Step 15: Select your applicable registered account type.
Step 16: Click “Sign document” and sign the document on the screen.
Step 17: Click “Buy”.
What if a project does not raise the intended amount of capital?
Funds are held in trust and are deployed to the project only after a minimum threshold of capital has been raised. If a minimum threshold of capital is not achieved, then all funds will be fully returned to investors, plus any interest that may have accrued, less any expenses.
What happens if a project I invested in doesn’t complete on time?
- In the due diligence process, Fundscraper’s Investment Committee will source projects that will have a projected buffer built into the project timeline so that there are allowances in scheduling to keep the investment horizon on pace.
- Preferred equity investments will continue to earn a preferred rate of return.
- Some project investments will have an outside date where the sponsor company is obligated to complete the project and allow the investors to exit the investment. Should this not occur, the sponsor company will be able to exercise its option to extend the project duration or will raise additional capital to allow existing investors to exit.
- Debt investments have a fixed maturity date and few options to extend without penalty. Therefore, the sponsor company will be responsible for paying the interest and principal on time, or else be in default of the loan.
- In any event, you should consult the particulars of any offering as detailed in the offering as posted on the Fundscraper platform or any posting supplement.
What happens if a loan I invested in is repaid early by the sponsor company or borrower?
It depends on the particular investment. The borrowing sponsor company may or may not be obligated to pay an early repayment fee. However, in some instances, a borrowing sponsor company will be obligated to pay an early repayment fee which will be distributed to the investors.
Can I sell my securities?
Securities purchased through the Fundscraper platform are issued pursuant to the rules governing the exempt market. Any resell of such securities must comply with these rules and any such resell may be subject to the prior written consent of Fundscraper. Subscribers wishing to resell their securities should advise Fundscraper and consult a legal adviser familiar with the exempt market rules.
Are the investment securities backed by any collateral or securitized by any asset(s)?
a) The investment offerings provided on the Fundscraper platform range in security seniority and asset collateral. Each investment will have its own characteristics.
b) For equity investments, Fundscraper will always ensure that the investment is tied to a direct interest in the property itself.
How long should I expect to hold my investment?
There is generally no “minimum term” – the term of mortgages we invest in vary widely and we endeavour to pass on flexibility to our investors so they can move in and out of our opportunities as they present on our platform.
However, Fundscraper investments, like all real estate investments, should be viewed as a long-term (5+ years) investment. We do offer shorter terms (subject to renewal) that are less than 12 months through our Fundscraper Property Trust Investment Vehicle Single Asset Mortgage Pools. If you need cash early, subject to a fee, you have redemption rights as set out in our Offering Memorandum under Redemption Rights.
What is the minimum investment?
The minimum investment amount ranges from $5,000 through to $250,000. Each investment offering or project has its own investment minimums.
