Our investment strategy is focused on real estate offering an enduring location (with walkability, public transit or short commute times to important urban hubs) and housing formats that have long life spans, such as a preference towards steel and concrete construction or modern energy efficiency factors.
New Format, long life Residential Housing.
1 — What is the minimum required to invest?
North America Home Finance allows investors to expand their financial portfolio into real estate with a $10,000 minimum investment and offers a preferred targeted rate of return on investment paid to investors first, prior to the developer.
2 — What are real estate trusts?
North American Home Finance uses a real estate trust with the addition of a collateral mortgage charge as the primary investment vehicle for its real estate development and residential property portfolio investments. This offers investors many of the benefits often associated with direct ownership, but without the burden of management responsibility, liability for principal debt, or a large individual cash investment. To evidence an individual’s proportion of ownership, each investor is issued Units in the investment, much like the way shares in a company are issued. Real estate trust units also flow through returns tax efficiently, to avoid double taxation as would be the case with a corporately held investment into real estate.
When it comes to organizing a direct investment into real estate development, the North America Home Finance structure is the fundamental building block for providing access for investment for a variety of different kinds of investor, allowing them to participate in creating landmark real estate projects and achieve their targeted returns.
3 — How is North American Home Finance able to provide these kinds of investment returns?
Our investment strategy is based on three core pillars to ensure the stability of our investments and the success of our real estate developments:
- North America Home Finance will only work with projects that can show the potential to generate a 20% minimum annualized return on equity, using an financial modeling strategy created by industry experts with the expertise, and experience to identify acceptable real estate opportunities with compelling value.
- Our team of leading professionals can oversee every facet of each development and our strong alliances within the industry allow us to team up with top development partners, top-contractors and sub-contractors to ensure we deliver quality buildings that achieve the desired result.
- North American Home Finance strategically chooses developments located in strong growth markets, where housing demand outweighs supply, but where prime undeveloped land can still be acquired at prices which allow for the required rates of return upon development completion.
4 — What is the difference between an accredited and non-accredited investor?
To be considered an Accredited Investor an individual needs to have either $1 million in financial assets (stocks, bonds, GICs, etc.) or $5 million net assets, which can include real estate investments, or have $200,000 in gross annual income. Couples can qualify the same way if their combined income is $300,000 per year. Professionals with financial certification designations can also qualify.
Some offerings are only available to Accredited Investors, depending on the disclosure documentation that is available and qualifying non-accredited investors can invest when an Offering Memorandum document is provided.
5 — How does North American Home Finance mitigate risk?
Through the combined security and margin of safety built into the investment approach (with subordinated developer capital), investors’ principal is invested into development projects with greater peace of mind. When a project is sold, a preferred investment funded by an investor will be first to receive back the original capital invested and all profits until the preferred return is generated. It is real estate investing made easy and accessible through a preferred payout structure where investors receive their total return before anyone else participates in profits, ensuring the developer’s goals are aligned with the needs of investors. North American Home Finance investments also benefit from phasing projects and achieving pre-sales before construction commencement (in which investors have an option to participate) which allows many of the normal unknowns to be mitigated early during a project.
6 — What is the length of term on investment?
Length of term will vary depending on the development, but your North America Home Finance investment representative can help direct you to the real estate opportunity that best suits your financial goals and timelines.