Investment Process

Pursuit Capital is a syndicate mortgage lender that arranges mostly qualified syndicated mortgages as defined in by the BC Securities Commission in BCI 45-501 (see here). The terms of the mortgages usually range from 6 months to 2 years, depending on investor appetite for the loan. Unlike many other investments, real estate secured mortgage investments provide a predetermined return on investor money at the time of mortgage placement. Investors have the option of investing in files according to their risk profiles.

A Pursuit Capital representative will present the file to the investor and fully disclose the details of the mortgage request after careful analysis which include loan request details, property details, credit history/information profile of the borrower. Upon a mutual agreement between the specialist and investor, the loan is created and provided to the borrower through legal council which is retained by Pursuit Capital on behalf of the investor and fees are payable by the borrower.

Loan Example

Property Value: $1,000,000 | Mortgage Request: $400,000 | Interest Rate: 8% | Term: 12 Months | Lender Fee: 1%

Monthly Interest Only Payment from the Borrower: $2,666.67 (paid to the investor)

Lender Fee: $4,000 (paid at the time of the set-up by the borrower to lender)

Based on the above scenario, our investor will earn $32,000 of interest income for a $400,000 investment into a 1st position private mortgage. The borrower is responsible for paying a one time set-up fee to the lender and covering all legal costs associated with the transaction.