Callable (by investor) every 6 months. Repayment after call is on an “as available” basis.
Redeemable (by BCMC) every 6 months. Redemptions by the company are paid immediately. Builders Capital will not exercise a redemption request if it does not have the capital to payout.
Interest compounds semi-annually.
Interest is paid every 6 months. Bondholders can elect to reinvest their interest.
Term to maturity is 5 years.
Minimum bond size is $250,000.00 CAD.
Bondholders must qualify to invest under the exempt market rules.
Arrears and losses have been small through active management by the portfolio managers.
Quarterly dividend payments to the MIC Class A shareholders has never been missed or reduced.
Over the last five years, there has been more demand than supply for Builders Capital funds.
As a public company, BCMC offers open disclosure and consistent third part
oversight via
audits and operational transactional history on a quarterly basis.
Exempt market products are not available to general public. They are designed for individuals and institutions that have the experience, assets, and risk tolerance to evaluate and manage private investment. Qualified investors are only those eligible to invest under exempt market rules.
$1M in liquid assets or $5M in total assets
or
Earns $200,000/year or $300,000/year with spouse
Learn more at Canadian Securities Administrators
Mortgages are currently issued at a fixed rate of 12.95%. After expenses, investors can reasonably expect a yield of 11%. Historic yields can be found online (www.sedar.ca) and in Appendix A.
Up to $50 million in participating bonds will be issued with a minimum of $250,000.00 CAD per issuance. Bonds will have a yield equal to the net return of the mortgage portfolio which is anticipated to be between 11% and 12%. Bondholders must qualify under exempt market rules to participate.
Borrowers will be charged a fee of 3.5% of the authorized mortgage amount. This fee revenue will be split between BCMC at 28% and the manager (Builders Capital Management) at 72%. The 28% essentially equates to 1% of the mortgage amount.
(403) 685-9888
