Indigoblue MIC is an alternative lender that invests in residential mortgages in market segments which are under-serviced by traditional financial institutions. The MIC primarily lends to “Business for Self” borrowers who are typically at a disadvantage when dealing with traditional financial institutions due to the nature of their income. The MIC is currently focused on 2nd mortgages on residential properties mainly in the GTA, Calgary and Edmonton. Indigoblue MIC has been active since May 2017 and targets 7.75% ROI on an annualized basis, which it pays in monthly distributions.
Indigoblue vets each mortgage request thoroughly with a particular emphasis on ensuring the borrower has the means to afford the mortgage loan they are taking on. The MIC further considers the marketability of real estate as well as condition of the property to ensure that the loans are backed up by highly marketable and quality real estate. The underwriting approach to each loan can be summarized by looking at a borrower’s income, credit and quality of real estate.
Mortgages in the MIC are usually lent in 2nd position with a weighted LTV for the pool of 70.76%, and average credit score for borrowers of 676 (fiscal year 2017/18). Overall security in the pool has been a key driver for its success over the last year and a half.
Fiscal year 2017-2018, the returns to investors net of fees were 7.83%.
Experienced team with over 100 years combined in the Canadian real estate and mortgage markets
Significant quality business shift from Prime to Alternative lenders due to OSFI changes in the last 9 years
Improved quality of borrowers with prudent lending approach presents a unique investment opportunity
Opportunity to invest in a fund that delivers above average returns backed by real estate as security
In house law firm to remediate any impaired loans quickly, efficiently and at a lower cost
Limited Liquidity, Potential Loan Losses, Real Estate Market Decline
There are risks and benefits to all investments and this summary is just for informational purposes only. There are no guarantees and the information noted above should not be relied upon as facts. Amuka Capital does not provide tax or legal advise so we caution you to engage your own legal counsel prior to investing. For more information on this offering, speak to your Amuka dealing representative.
- Projected Return
- ~7.75% ROI/Year
- Term Length
- Fund, Ongoing
- Investment type
- Fixed Income