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Frequently Asked Questions:
Below you will find answers to the more commonly asked questions regarding Mortgage Investment Corporations, specifically the Westboro Mortgage Investment Corporation.
- What is the minimum/maximum investment amount?
The minimum investment amount is $150,000 and the maximum investment amount is $1,750,000. Unless you are an accredited investor, which means you have a million dollars networth excluding real estate, or an income of $200,000 per year. In this case the minimum investment for accredited investors is $50,000
- What type of properties does WMIC finance?
WMIC lends primarily on residential properties. Revenue Canada guidelines allow up to 50% investment in commercial properties, however we have set the maximum at 25%. A MIC may also invest 25% of its capital directly in real estate property for income purposes although no such investment is planned at this time by Westboro Mortgage Investment Corporation.
- How often do I receive payment?
The investor receives a monthly dividend payment.
- Can I reinvest the dividends received?
Absolutely, your dividends can automatically be reinvested if that is how you wish for them to be handled.
- Who makes decisions on granting mortgages?
Lending decisions are made by the "Loan Investment Committee". This committee is composed of one member of WMIC management team and two members of the independant board of directors.
- What forms of security does the investor have with the WMIC?
The underlying security of the WMIC mortgage portfolio is the value of the real estate and the personal guarantee of the borrower. Investors are issued preferred shares which reflect the amount of money invested.
- How much is the WMIC management team paid?
The managers, Dan Kelly and Don Paterson, are paid a management fee of 2% per year based on the capital invested in the MIC. An additional performance bonus, equal to half (50 base points) the yield above 8.5% for the annual return, up to a maximum of 1% will also be paid to the management team. The maximum amount that the management team is entitled to receive is 3% of the assets managed by Westboro Mortgage Investment Corporation.
©2006 Westboro Mortgage Investment Corporation
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Dan Kelly
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Don Paterson
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