Frequently Asked Questions (FAQ)

 

 

 

 

Q		WHO ARE YOU AND WHY SHOULD I GIVE YOU MY MONEY?

 

 

Streamline Investments is a professional real estate investment company with over 80 years combined experience in real estate investment and business and over $70 million in real estate transactions all over North America. Please click on the "About Us" tab for our directors’ biographies for more information about us

 

Q		WHAT EXPERIENCE DO YOU HAVE?

 

 

We have over 80 years combined experience in real estate investment and business and over $70 million in real estate transactions all over North America

 

Q		HOW LONG HAS THE COMPANY BEEN IN BUSINESS?

 

 

Streamline Investments is a new company, but its directors and managers have had their own businesses for many years.

 

Q		WHAT KINDS OF HOMES HAVE YOU RECENTLY PURCHASED AND CAN YOU TELL ME ABOUT THEM?

 

The Fund does not purchase real estate, but provides the necessary financing to real estate corporations that do.

 

Q		WHAT PROPERTIES HAS THE COMPANY PURCHASED SO FAR?

 

 

The Fund does not purchase real estate, but provides the necessary financing to corporations that do.

 

Q		DO YOU HAVE REFERENCES THAT I CAN CALL TO CHECK?

 

 

Streamline Investments is a new company, but its directors and managers have had their own businesses for many years. Their personal and professional references are available upon request.

 

Q		WHAT MAKES YOU DIFFERENT FROM ALL THE OTHER REAL ESTATE INVESTMENTS OUT THERE?

 

We are uniquely different from the other real estate investments in several ways:

1. The Fund does not directly purchase real estate, but provides financing to corporations that do.

2. The Fund is registered on title for the properties as the mortgage holder and therefore, is secured by the real estate investments.

3. The Fund proceeds are 100% invested and not used to cover management, marketing, commissions, or other costs.

4. The Fund proceeds are not used towards a down payment that would require further financial leverage from other sources.

5. The Fund proceeds are not used towards construction costs as with some other real estate funds. (If the construction project fails, the investment is fully lost.)

 

Q		HOW IS THIS DIFFERENT AND BETTER THAN A MIC?

 

 

Streamline Investments is not a MIC. The Fund is offering real estate bonds with a fixed 8% bond rate per year for a term of 5 years that is secured by real estate.

 

Q		SOME INVESTORS SAY THAT THE U.S. MARKET IS REALLY TOXIC. WHY WOULD WE WANT TO INVEST IN US REAL ESTATE?

 

The Fund does not purchase real estate, but provides the necessary financing to corporations that do.
Several financial experts believe that certain markets in the U.S. are near the bottom and will turn around soon. As well, the U.S. real estate market is not a uniform market. Each geographic region will have its own ups and downs.

 

Q		WHY DO SOME BORROWERS NOT LIKE USING BANKS? IS THIS BECAUSE THEY HAVE CREDIT PROBLEMS?

 

The availability of U.S. real estate investment financing is difficult and very unreliable for Canadian investors. U.S. banks place a limit of four properties for individuals before cutting off funding which would inhibit their business. With cash, investors can operate much more effectively and quickly - they can close on property deals much sooner.

 

Q		WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

 

 

The Fund’s investment objective is to profit from providing financing to corporations investing in real estate and in turn, provide an above average return for our Fund investors.

 

Q		WHAT IS THE FUND’S TRACK RECORD?

 

 

This is a new fund and therefore does not have a track record. However, the company’s directors and managers have their own personal investment track records.

 

Q		WHAT AM I INVESTING IN?

 

 

Real Estate Bonds with a fixed bond rate of up to 8% per year for a 5 year term secured by real estate.

 

Q		ARE THERE DIFFERENT CLASSES OF BONDS?

 

 

Yes - Class A, Class B, and Class C bonds all with different rates of return.

 

Q		WHAT KIND OF RETURN CAN I EXPECT?

 

 

Up to 8% simple interest.

 

Q		WHAT IS THE MINIMUM INVESTMENT?

 

 

$4000

 

Q		IS MY CAPITAL SECURE?

 

 

Your invested funds are secured by real estate.

 

Q		WHEN CAN I ACCESS MY MONEY?

 

 

You will receive interest payments on a frequency as per your agreement and offering memorandum; the principle however is locked in for five years.

 

Q		HOW CAN YOU AFFORD TO OFFER BETTER RETURNS THAN MOST FINANCIAL INSTITUTIONS AND BANKS?

 

We do not have the same overhead costs as the banks such as different branches, a large staff, and several management levels on their payroll. Secondly, banks make their money by lending money out at a higher rate and paying a lower rate on your deposits. The stated return you get on their investment products are significantly lower than what they're getting on the backend.

Banks are currently offering 5% mortgage rates. We are offering you the opportunity to lend money out "like a bank" at 8%.

 

Q		WHAT GUARANTEE DO I HAVE OF AN 8% RETURN IN THIS MARKET?

 

 

As this is an "investment," we are not able to provide you with a guarantee. However, our investment offering is structured such that your risk is minimized.

First, the investment funds are not directly used to purchase real estate. The fund only acts like a bank and lends money to corporations that will purchase real estate. Our financing will also only be provided up to 80% Loan-to-Value for the properties purchased.

Second, the Fund will be on title for the properties as the mortgage holder. Acting like any lender, the fund will foreclose on the real estate properties and deny any further financing for the corporation if the corporation misses their mortgage payments. Streamline Investments will then resolve the problem and bring the property back to positive cash flow status or liquidate the property to recover the investment funds. Either way, investment funds are secured by the real estate properties.

Finally, the Fund will be providing financing at a rate of  9% - 14% to the corporations in order to not only ensure that the Fund investors get a 8% return per year on their investment, but also to cover all of the costs associated in managing and operating the Fund. Thus, the Fund does not have any front-end or back-end fees as most mutual funds do.

 

Q		WHY DO I HAVE TO TIE UP MY MONEY FOR 5 YEARS?

 

 

We require investment funds to be committed for a period of at least 5 years due to the financing requirements for real estate investments.

 

Q		WHAT HAPPENS IF I NEED MY MONEY SOONER?

 

 

We require investment funds to be committed for a period of at least 5 years and do not provide the option to withdraw the funds prior to the end of that term.

 

Q		WHAT KIND OF FEES DOES YOUR FUND HAVE?

 

 

There are no front-end or back-end fees. The Fund proceeds are 100% invested and not used to cover management, marketing, commissions, or other costs like other funds. The Fund’s management and operational costs are covered by the corporations’ cost of borrowing from the Fund.

 

Q		WHAT IS THE MAIN RISK OF INVESTING IN THIS FUND?

 

 

The main risk of this fund includes the global economy at large, the U.S. market, borrower defaults and foreclosures as any fund would secured by real estate.

 

Q		IS IT TRUE THAT RRSP FUNDS HAVE TO BUY REAL ESTATE IN CANADA, NOT IN THE U.S?

 

 

The Fund does not purchase real estate, but provides the necessary financing to corporations that do.
Other Canadian real estate companies such as Jaymore, 20/20 properties, and Prestigious have all utilized RRSP money towards U.S. real estate investment purposes.

 

Q		IF WE INVEST WITH RRSP AND WITHDRAW CASH, IS THERE TAX PENALTIES?

 

 

We cannot provide tax advice. Please consult an independent tax expert for your unique tax situation.

 

Q		WHAT ARE THE TAX IMPLICATIONS?

 

 

Each individual's situation is unique and different. Please seek your own professional tax counsel.

 

Q		SINCE WE ARE USING RRSP MONEY, DO WE SEND OUT TAX RECEIPTS?

 

 

No, a third party RRSP trustee company, such as Olympia Trust, would handle and send out RRSP statements and notifications.

 

Q		WHAT ARE YOU PAYING FOR THE PROPERTIES?

 

 

The Fund does not purchase real estate, but provides the necessary financing to corporations that do up to 80% Loan-to-Value of the properties purchased.

 

Q		HOW MUCH MONEY DO YOU MAKE IN THE DEAL?

 

 

The Fund will not be purchasing real estate, but will be providing financing at 9% - 14% to the corporations and pay Fund investors up to 8% per year on their investment.

 

Q		WHAT IF THE PROPERTIES ARE NOT RENTED? WILL I STILL GET PAID?

 

 

Yes, the borrowing corporations are responsible for fulfilling their financing obligations and will be foreclosed on if they do not.

 

Q		HOW MUCH CONTROL WILL I HAVE? WHAT ARE MY PURCHASER’S RIGHTS AFTER AGREEING TO INVEST?

 

Investors are "investing" in a bond, not "purchasing" a share. Further rights are outlined in the offering memorandum.

 

Q		IS THIS INVESTMENT REGISTERED WITH THE SEC?

 

 

Yes, this fund is registered with the Security and Exchanges Commission.

 

Q		DO WE HAVE OBLIGATIONS TO REPORT TO SEC AND WILL ACCOUNTANTS GIVE ME A REPORT?

 

As the fund closes after a 12 month period, it is not required to provide audited statements - it only needs to report to the SEC. However, investors will be provided audited financial statements and an annual report from a third party accounting firm.

 

Q		AS AN INVESTOR, CAN I TRACK THE VALUE OF THE FUND SO I KNOW THE AMOUNT ON DEPOSIT AND AMOUNT BEING LENT?

 

The annual report will advise this.

 

Q		HOW LONG DO I HAVE TO CHANGE MY MIND AND REQUEST A REFUND?

 

 

There is a two day rescind period.

 

Q		CAN WE VERIFY THE INVESTMENT WITH A CREDIBLE SOURCE?

 

 

The offering memorandum outlines the entire investment which you may have your lawyer review. Like any lender, the Fund will utilize third party appraisers to verify property market values.

 

 

If you still have any questions or require further assistance, feel free to contact us by:

Phone: (604) 688-5773

or E-mail us at: info@streamlineinvestments.com