Build a better investment portfolio today.

Position yourself to potentially earn better returns by diversifying into private market real estate with Fundscraper’s Diversified First Mortgage Pool

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The 60/40 balanced portfolio
is no longer good enough.

Savvy investors know the truth: adding alternative investments, like real estate, to your portfolio is a smart, sound move that can provide reliable income, enhanced returns and will furnish your portfolio with some much needed diversification.

1. Diversify your portfolio

The public market’s cyclical nature can be nerve-racking. By investing in an asset class that has a low correlation to the stock market, you are able to rest easy knowing your nest egg is safe, even when markets are down.

2. Enhance returns

A study by investment research firm Robert W. Baird noted that replacing 20% of a traditional stock and bond portfolio with real estate cut volatility by 10% while also increasing returns, even after taking into account added fees and expenses.

3. Increase income

Real estate may offer higher yields than traditional investments—especially during periods of low interest rates. It may also produce quality cash flow well into retirement – the perfect complement to a secure nest egg.

A mortgage pool isn’t a place to take a dip on a hot summer day, but it is a great place to get your toes wet in alternative investments.

Whether you are a savvy investor looking for something more advanced than your basic strategy or new to real estate investing, our Diversified First Mortgage Pool is a great vehicle for capturing the diversification benefits of real estate without the drawbacks of direct property ownership, all while paying reliable monthly cash flow.

Diversified First Mortgage Pool

7.25%

Target Portfolio Net Annual Return

Request Info

Residential First Mortgages

Low-risk

Medium Term

Monthly Distributions

Portfolio 0verview.

This pool is an investment opportunity to fund first mortgages generally registered against single-family and multi-family residential assets in established neighbourhoods in southern Ontario and other major metropolitan areas.

High-quality, resilient investments backed by real estate.
Our investment committee reviews hundreds of potential deals each year and selects only the gems to help power this portfolio. With first position mortgages, Fundscraper has a greater likelihood of retrieving your funds, in the event of default, providing you with greater security. Read about our underwriting process in this article.

Network connections matter.
We source our deals from our extensive network of proven issuers, sponsors, real estate owners, managers, and property developers. We’re strictly regulated as an Exempt Market Dealer and we work with the best of the best.

Purchase by Fundscraper.
Fundscraper actually funds some of the deals before adding them to the pool. By pre-funding the deal, we take on a large amount of risk that this project will be good and investors will want it.

Backed by decades of experience.
Our credit committee has over $5 billion of combined transaction experience and our investors benefit from industry-leading underwriting informed by decades of commercial real estate experience.

Term: Up to 18 months

Fee: 1% *

Minimum Investment: $5,000

Average Investment: $20,000

Investment Eligibility: Registered (RSP, TFSA) and Non-registered Funds Eligible

Distributions Paid: Monthly

Portfolio Loan-to-value Ratio: <70.0%

Lien Position: First

Property Type Allocation: Residential Mortgages

Market Allocation: Major metropolitan cities in Canada

*Please review the OM for the outline of all the fees involved.

Investments.

Roehampton Ave.
Toronto, ON

Residential – Multi-Family
Property Type

8.0%
Target Portfolio Net Return

Fund a first position mortgage registered against a multi-family residential unit in a core neighbourhood in midtown Toronto, Ontario. The investment exit strategy will likely be a refinance with a lender after 1 year.

Hemlock St.
Waterloo, ON

Residential – Multi-Family
Property Type

7.5%
Target Portfolio Net Return

Hemlock St. is an investment opportunity to fund a first position mortgage registered against a multi-family residential unit in a developed neighbourhood in Waterloo, ON. It is located behind Wilfrid Laurier University’s Lazaridis School of Business’ building. The proceeds have been used for a home purchase. On review, the Borrower’s credit score is exceptional.

The Gore Rd.
Caledon, ON

Residential – Single-Family
Property Type

8.25%
Target Portfolio Net Return

The Gore Rd is an opportunity to make an equity investment through Fundscraper Property Trust’s first mortgage financing pool in connection with a single family detached property in Caledon, Ontario. The Trust’s investment exit strategy today is a refinance with a lender after 1 year.

How it works.

1. Invest through our fully digital platform.
Create an account, choose an investment, add to your portfolio and watch your money grow. We offer a free strategy session to help you get started. Tell us a bit about yourself and we’ll build a plan together.

2. Diversify your portfolio, effortlessly.
Investors subscribe for units of our Unit Trust, Fundscraper Property Trust, which pools money. The Trust invests the money across well-priced, well-located residential first mortgages that we believe are well-positioned to thrive in any economic environment.

3. Stable monthly income straight to your account.
As mortgagees repay principal and interest to the Trust, the Trust passes on the payments to our investors in the form of distributions.

4. Track your progress and watch your wealth grow.
Read up on your investments with confidence. We aim to deliver an unmatched level of transparency and reporting through regular updates displayed within your investor dashboard.

Get Started

Our track record speaks for us.

6000+

registered clients

10.87%

in earned net annualized returns in 2020

$325 million

in capital placed into projects across North America on behalf of our issuer clients.

Meet our network.

These are the real estate developers, mortgage brokers, and other sponsors who put deals in our marketplace.

Our community is calling.

We know starting something new or joining a new crew can be intimidating. With a community of more than 6,000 (awesome) people using
Fundscraper to grow and manage their real estate investments, we promise you’re in good company.

Let’s build a better real estate portfolio together.

We offer a free strategy session to help you get started. Tell us a bit about yourself and we’ll build a plan together.

Contact Us to Invest Today
Luan Ha
Luan Ha

CEO

Luan Ha, MBA, has 15+ years of experience in commercial and mixed use real property development. Formerly serving as the AVP, Development at RioCan Management Inc., Luan oversaw a $3 billion commercial mixed use project pipeline that spanned across all of Canada in a variety of real estate asset classes.

Gregory Colford

Principal Broker & Chief Compliance Officer

Executive Vice President, Chief Compliance Officer and Principal Broker of FCI. Gregory was a partner at Heenan Blaikie LLP until September 2005. Together with two others he founded and operated a commercial mortgage brokerage that acted for a major pension fund investing in seniors housing until June of 2012. Following that Gregory worked with a national mortgage brokerage and a leading independent financial house to create funds to finance residential Alt A mortgage origination.

Terence Cheng

Vice-President, Operations

Terence Cheng, has 10+ years of real estate investing experience in both the Canadian and Asia Pacific markets. Formerly serving as a Development Analyst at RioCan REIT, Canada’s largest real estate investment trust, he managed a multi-million dollar national commercial development pipeline with projects ranging in size from 5,000 sq.ft. to over an aggregate of 1,500,000 sq.ft.

Frequently asked questions.

It is a trust whose sole purpose is to invest in real estate for the benefit of the beneficiaries of the trust, namely you and each of the other investors!

Fundscraper Trust lends money indirectly to many borrowers of different sizes and risk profiles. Fundscraper Trust then groups or “pools” mortgages that are similar.

We have a very conservative pool of mortgages where the investment return reflects the low risk nature of the pool.

We have an “adventuresome” pool that is a group of mortgages that would be considered riskier than a conservative pool – it provides an investor a higher rate of return that reflects that additional risk.

Then we have a pool that is a mix of the two – that pool has a little bit of each.

We have a 1% portfolio management fee and interest rate spread (generally 200 basis points). The spread is the difference between the gross interest rate paid by the borrower and the interest rate earned by the investor.
You subscribe for units of the Trust. The Trust then takes your money and invests it, through a related vehicle, into mortgages. As borrowers repay those mortgages back to the Trust, the Trust passes on the payments to you!
You are looking first for safety. How safe you want to be will determine what kind of mortgage pool you will eventually invest in.

Secondly, you are looking for “return” – how much interest you want to earn back on your investment will have to to be weighed against how secure you want to be. Third, you want transparency.

You want to know clearly and simply what it is you are investing in and what you may reasonably expect in the form of return. No other platform delivers this better than Fundscraper.

We generally permit our investors to redeem at any time unless there are extraordinary circumstances that makes that impossible.

We discourage investors from redeeming early by charging a modest early termination fee – so, for example, if you redeem prior to the maturity date (or term) of your investment, we may in our discretion assess a charge of up to 5% for that early redemption, depending on how early you choose to redeem.

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