FUNDSCRAPER PROPERTY TRUST

Diversified First
Mortgage Pool

Built for first time private real estate investors
It’s easier than ever to start building a long-term portfolio with real estate now and put the power of passive income to work for you with as little as $5,000.

Access to Canadian First Mortgages

Diversified First Mortgage Pool focuses exclusively on first mortgages generally registered against single-family and multi-family residential assets in established neighbourhoods in southern Ontario. Mortgage terms are typically 6 to 18 months, which minimizes real estate price fluctuation risk, interest rate risk, and duration risk.

We consider this pool as your GIC/savings bank alternative. Though it’s not guaranteed or insured, it is conservative and secured, delivering a greater anticipated return than what you might expect on GICs or traditional savings accounts.

Investment Highlights

Issuer

Fundscraper Property Trust

Unit Class

Class AA Trust Units

Inception Date

November 1, 2020

Management Fee

Up to 1.00% per annum

Portfolio Size

11 Mortgages

Current Yield

7.25%

Distributions

Monthly

Minimum Investment

$5,000

Redemption

Quarterly

Investment Plans

RRSP and TFSA Eligible

Why Invest?

Stable Monthly Income

A combination of current income and potential for higher yield.

Conservative Risk

Minimizes volatility by investing in first mortgages and capping its loan-to-value ratio at 75%.

Greater Security

A combination of current income and potential for higher yield.

Flexibility

Penalty-free redemption each quarter.

Tax Free Income

Can be incorporated into registered investment portfolios.

Low Minimum Investment

Start investing in real estate with $5,000.

Stable Monthly Income

A combination of current income and potential for higher yield.

Conservative Risk

Minimizes volatility by investing in first mortgages and capping its loan-to-value ratio at 75%.

Greater Security

A combination of current income and potential for higher yield.

Flexibility

Penalty-free redemption each quarter.

Tax Free Income

Can be incorporated into registered investment portfolios.

Low Minimum Investment

Start investing in real estate with $5,000.

What is in the Pool?

Ridley Crescent - Class BH Units

12 Months
Investment Term
$5,000
Min. Investment (CAD)
7.5%
Projected Annual Return

Hickson Crescent - Class BG Units

12 Months
Investment Term
$10,000
Min. Investment (CAD)
7.5%
Projected Annual Return

Grenon Avenue - Class BO Units

12 Months
Investment Term
$10,000
Min. Investment (CAD)
7.0%
Projected Annual Return

Portfolio breakdown as of June 1, 2022

 Class and Series of UnitsLocationAsset TypeProjected Net ReturnSecurity PositionLTVUse of FundsInitial Term (months)Expected Maturity DateStatus
GrenonOttawa, ONSingle-family Residential7.00%1st59.75%Refinance12August 1, 2022In Good Standing
CloverleafBurlington, ONSingle-family Residential7.25%1st64.95%Debt Consolidation12July 1, 2022In Good Standing
BowmanvilleBowmanville, ONSingle-family Residential7.50%1st73.68%Purchase12August 1, 2022In Good Standing
GoreCaledon, ONSingle-family Residential8.25%1st75.00%Refinancing6April 1, 2023Refinanced with new maturity date
Avenue RoadToronto, ONMulti-family Residential6.99%1st65.00%Refinancing12March 1, 2023Refinanced with new maturity date
HemlockWaterloo, ONMulti-family Residential8.00%1st70.00%Purchase12June 1, 2023Refinanced with new maturity date
Quail RunOshawa, ONSingle-family Residential7.50%1st75.46%Refinancing12January 1, 2022Repaid
William StLondon, ONSingle-family Residential6.49%1st74.78%Purchase6November 1, 2021Repaid
CharlesLondon, ONSingle-family Residential7.50%1st70.00%Purchase12June 1, 2022Repaid
GracewoodOttawa, ONTwo-storey semi-detached Single Family6.99%1st69.63%Refinancing12April 1, 2022Repaid
RidleyDundalk, ONSingle-family Residential7.50%1st65.39%Purchase12November 1, 2022Repaid
HicksonOttawa, ONSingle-family Residential7.50%1st68.81%Purchase12October 1, 2022Repaid
BerneyCaledon, ONSingle-family Residential6.00%1st54.31%Purchase and New Build12November 1, 2021Repaid
West MallToronto, ONMulti-family Residential8.00%1st66.00%Debt Consolidation12November 1, 2021Repaid
AtwaterOshawa, ONSingle-family Residential7.50%1st72.00%Purchase6March 1, 2022Repaid
Culver TerraceLondon, ONSingle-family Residential7.50%1st73.67%Purchase12October 1, 2022Repaid

Portfolio Performance

Returns are after expenses have been deducted. This chart shows how the pool has performed each month since its inception as of November 1, 2020.

FAQs

See our Offering Memorandum, Approval Process for Mortgage Investment Opportunity  

When we “pre-vet” something offered on our website, we are telling you that we have studied and examined it and based on that we have  determined it is a worthwhile opportunity that would be suitable for certain members of our community.  What might be suitable for some members may not be suitable for others.  We’ll help you understand what deals on our site are most “suitable” for you based on what you’ve told us about yourself. 

See our Offering Memorandum, Approval Process for Mortgage Investment Opportunity

 “Due diligence” is our detective work!  It is one of the early steps we take to determine whether or not an opportunity is suitable for our community.  “Due diligence” is a  comprehensive appraisal of an investment opportunity by Funscraper to establish and evaluate its potential as a good or bad investment.  As an investor in Fundscraper you rely on our due diligence when we conclude the investment is “suitable”!

See our Offering Memorandum, Redemption of Units 

If you have invested in Fundscraper Property Trust, you’ve invested in pools of mortgages through the Trust.  Mortgages, by their nature, are “long term” investments.  If you need your money in the near future, then a mortgage is not an appropriate investment – the return on mortgages is enjoyed over years, not months or days.  It is expensive for us to invest in mortgages – there is a great deal of “due diligence” associated with “pre-vetting” the opportunity to assess its suitability for our platform.   If you have to cash out early, then we charge you a small fee to compensate us for the work we’ve done creating the investment opportunity.  This small fee is the “redemption discount” though we do not call  it a “discount” – it’s a fee.  The longer your money remains with us, the smaller the redemption fee is over time. The fee is 5% of the total redemption price if you redeem your units in the first year and goes down to nil after the fifth anniversary of your purchase. The managers of Fundscraper Property Trust do have the ability to waive the redemption fees on a case by case basis.

With respect to an investment by the Trust, there is no “minimum term”  – the terms of the mortgages or other real estate assets we invest in vary widely and we endeavour to pass on the flexibility to our investors so they can invest in opportunities as offerings occur on the platform. 

We expect our investors to invest for the medium to long term.  If you need to cash out before the maturity of an offering or before the term of investment expires, we can charge a small fee against the Redemption Price (which is the original purchase price).  The fee is to compensate us for the work we’ve done bringing the opportunity to the Platform. 

See our Offering Memorandum, Redemption of Units.

See our Offering Memorandum, Approval Process for Mortgage Investment Opportunity

We protect our investors through stringent underwriting and review. The investments made by the Trust are secured against real estate and the value of our investments is always less than the security we’ve negotiated to secure the investment.

Fundscraper Property Trust is a “continuous” offering meaning that we are always open to investors.  We aim to do a formal closing the first day of each month.  Sometimes, due to holidays, our “closing” is scheduled for the middle of the month instead of the 1st of the month.  

See our Offering Memorandum, Approval Process for Mortgage Investment Opportunity

We protect our investors through stringent underwriting and review. The investments made by the Trust are secured against real estate and the value of our investments is always less than the security we’ve negotiated to secure the investment. Some of our offerings have shorter terms, and some have longer terms to help investors manage duration risk.  Often times, we have on hand an interest reserve from the borrowers of underlying mortgages to ensure interest payments can still be received in case of borrower default, giving the loan administrator enough time to remediate the defaulted mortgage or exit a mortgage.  We do try to provide investors with a diverse selection of offerings that meet their investment objectives, return expectations and risk tolerance. 

See our Offering Memorandum, Redemption of Units

The asset manager always has discretion in respect of redemptions. The use of such discretion is exercised on a case-by-case basis. 

See our Offering Memorandum, Redemption of Units

If you have invested in Fundscraper Property Trust, you’ve invested in pools of mortgages through the Trust.  Mortgages, by their nature, are “long term” investments.  If you need your money in the near future, then a mortgage is not an appropriate investment – the return on mortgages is enjoyed over years, not months or days.  It is expensive for us to invest in mortgages – there is a great deal of “due diligence” associated with “pre-vetting” the opportunity to assess its suitability for our platform.   If you have to cash out early, then we charge you a small fee to compensate us for the work we’ve done creating the investment opportunity.  It’s not a “penalty” – it’s a fee for our services. The longer your money remains with us, the smaller the redemption fee is over time. The fee is 5% of the total redemption price if you redeem your units in the first year and goes down to nil after the fifth anniversary of your purchase. 

Yes. There are two documents you should (“must” your mother would say!) review.  The first is our Offering Memorandum.  This is a long document that tells you our story and what you need to know about the investment you are about to make.  We have spent a great deal of time preparing this document for you and we really want you to read it!  The second thing you should read is the “Supplemental” that comes with the Offering Memorandum.  It describes to you the particular investment you want to purchase.  The third document you should read is the “Terms and Conditions of Subscription” – if you choose to purchase units in our Trust, then this document sets the terms of our purchase and sale.

Contact Us Today to Learn More

Schedule a consultation call today to discover if the Diversified First Mortgage Pool is a good fit for your investment portfolio.

Terence Cheng

Vice-President, Operations,
Dealing Representative

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.

Sam Higgins

Investment Sales Associate,
Dealing Representative

Sam Higgins is a McMaster University Graduate where he studied economics and finance. Before joining Fundscraper Sam was working as an investment associate at CIBC assisting an investment advisor with client related performance reports as well as executing trades. He also previously had an internship at a fin-tech firm focusing on automated payments and prepaid credit cards.

Jennifer Mercieca

Investment Sales Associate,
Dealing Representative

Jennifer is a McMaster University Graduate where she studied finance and obtained a Bachelor of Commerce degree. Before joining Fundscraper Jennifer was working as an investor relations associate at SS&C Technologies, providing IR services for various asset management firms. Prior to that, Jennifer also worked summer internships at Industrial Alliance in the Group Savings & Retirement department.

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