No, an investment in an FPT unit is not a syndicated mortgage. You are a unit holder in FPT which in turn typically invests in a limited partnership holding the real estate investment pursuant to the terms of a limited partnership agreement.
What kind of returns can I expect on my investments?
If you invest in Fundscraper Property Trust you have options available that are designed to reflect your appreciation for risk. For investors looking for diversification we have “pools” of mortgages from which investors can choose. We have conservative pools of mortgage investment and an advertersome pool for those who feel that they can tolerate a little more risk for a higher return. We also have pools that are constituted by specific opportunities in which you are able to invest with us well. These are unique financings the Trust has underwritten in which you are welcome to participate through the Trust. Each project has a unique projected return profile that we describe in the supplemental postings we supply to Offering Memorandum.
How is Fundscraper Property Trust different from a Private Real Estate Investment Trust (REIT) or a MIC?
Fundscraper Property Trust (“FPT”) is a private investment vehicle classified as a “mutual fund trust” under the Income Tax Act which sells units to investors and then uses a pool of capital to invest in private mortgages, collects monthly interest, and passes that to its unit owners as monthly income. FPT offers different secured mortgage asset pools that, while they are not guaranteed or insured, are reflective of risk tolerance and suitable for registered user’s goals. You can invest in Fundscraper Property Trust with as little as $5,000. In some cases, units offered by FPT will be eligible for Registered Funds like RRSPs, RRIFs, and TFSAs.
When you invest in a public mutual fund, the fund managers invest your money, along with the money of all the other unitholders (investors in the fund), in a portfolio of investment assets that might include equity securities (stocks), debt securities (bonds), Treasury bills and more. Mortgage Investment Corporations (“MICs”) are public vehicles which pool mortgages. Private REITs are real estate funds or companies that are exempt from SEC registration and whose shares do not trade on national stock exchanges. Private REITs generally can be sold only to institutional investors.