"An investment in knowledge pays the best interest."
- Benjamin Franklin
How does RealAlt® 's mortgage fund work?
When you invest in RealAlt® investment fund, your money is put towards commercial real estate mortgages facilitated by Dorr Capital.
Dorr Capital lends to professional developers and builders who require constant funding to purchase properties, service land, and undertake construction projects.
Developers pay back these loans with interest, which Dorr Capital moves back to RealAlt®. This interest becomes your monthly distribution payments.
You can also reinvest your monthly distributions back into the fund through our DRIP program (Distribution Reinvestment Plan), through registered accounts such as RRSPs and TFSAs — the choice is yours.
What is a mortgage fund?
A mortgage fund is an investment where investors buy units in a fund that is managed by a professional fund manager. Before any money is lent, borrowers are put through an extremely rigorous due diligence approval process to minimize risk. The money is then given to borrowers as mortgage loans, where they use the money to develop Real Estate properties.
Here’s another way to think about mortgage funds: as an investor, you act like a bank. You receive a regular income stream in the form of distributions from the manager, which is secured by mortgages over the properties.
Mortgage funds give you exposure to the real estate sector, without the need to invest in individual properties. You’re investing in a portfolio of mortgage loans secured by real estate property construction. Using a “buy-and-hold” approach, mortgage debt funds aim to provide steady returns over the medium to long-term.
Why new home development?
RealAlt® Investments specializes in land and new home development in Ontario. Why? Ontario’s population growth is exploding, and as populations grow, so does demand for land and new home construction.
The GTA saw record home sales throughout 2020 and early 2021, with a 52.5% increase year-over-year. As Canada plans to welcome more than 1.2 million immigrants by 2023, the demand for housing continues to grow.
From TRREB’s 2022 market overview and 2021 Year-in-Review: “detached houses remain the most popular option, especially in the suburban areas surrounding the City of Toronto where detached purchase intentions were the highest since 2015.”
The best part? It’s rewarding. Our investors tell us they love driving by and seeing progress on the projects where their investments have helped fund construction. RealAlt® Investments gives you the opportunity to invest in your future and the future of growing communities with residential and commercial buildings in the GTA.
There are many ways to capitalize on Ontario’s growing real estate sector, but RealAlt® gives you the opportunity to participate in real estate private debt — just like high-net-worth Canadian investors do.
Our close partnership with Dorr Capital is what sets up RealAlt® for success. When you invest with RealAlt®, you get exclusive access to risk-adjusted real estate mortgage investments, managed by a team with decades of real estate finance experience at Dorr Capital.
For over a decade, investors and developers have trusted Dorr Capital to support their building projects and financial goals, and 42% of them come back more than once. Our partner firm’s track record can help you gain income from an industry we know inside and out.
How hard is your portfolio working?
Diversify your current investment portfolio by adding mortgage investment opportunities to traditional stocks, mutual funds, ETFs and bond assets. RealAlt® offers exposure to real estate private debt, with the added benefit of monthly distribution payments.
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