In the 1960s, Ruth and Henry Goodman had accumulated a small sum of savings and were looking for ways to preserve it while making a reasonable return. Growing up in New York in the Great Depression, they experienced bank failures and realized they wanted to guard their savings in a vehicle that was more secure than a bank while generating a return that could be part of an income stream, and was superior to CDs and GICs, where, in their opinion the risk was nearly equal. While working with a small group of friends who they met around a bridge table in the late 1950's, Henry was taken under the wing of a successful real estate investor. That gentlemen promised to teach Henry how to invest and one thing he told him was to stick to investments where one could control the underlying security in the event of a default, and where the security could not be moved. As a result, Henry and Ruth, his wife, decided that conservative, private mortgage lending was the best option for them. They understood that while banks can go under, land never goes away. They also realized if they focused on lending against residential properties in well-populated areas with high enough property sell-through rates, and avoided financing development deals, they could earn a consistent return, and in the event of a default, they could always recover their principle if they had to sell the property for the value of the loan. For over sixty years, they have generated a consistent return that more than doubles GIC rates offered by the bank. During that time and over the span of half a century, the Goodman family's private lending club with close friends and family, has grown into the Tri City Group of Companies today.
Since then, our lending philosophy has not changed. In 2010, we opened our doors to the public and launched our first trust, Tri City Mortgage Fund. With $10 million under management, it is a small trust that is now closed to new investment and returns 7% to 8% annually to its investors.
Five years later we decided to launch and grow our second trust, Tri City Monthly Income Mortgage Trust. With $62 million under management, it now serves over 450 individual investor accounts, paying distributions on a monthly basis and returning between 9% as of August 2024. We achieve this by hand-picking mortgages that we put our own money into, alongside our investors. In fact the most important part of the process is picking the mortgages we wish to fund. Bigger is not always better in our business. Pressure to put the capital to work is not the best for investors, nor are slightly higher returns over the long run.
There are three reasons we are able to carefully select our mortgages: One, how we price our capital in the private mortgage market, two, the level of customer service we provide to our borrowers, and three, our speed of delivery. While private mortgage rates can range from 9% to 20%, our rates hover between 10% and 11%. This, along with the level of customer service and efficiency we provide to our customers, makes us an attractive source of capital to the mortgage broker community, who provide us with loan opportunities. This keeps our deal flow active, allowing us to carefully select those mortgages we consider the best, whereby we fund on average one out of every nine mortgages we see. Obviously, the higher the rate, the greater the return. However, higher rates mean greater risk. Given our top priority is to preserve wealth, we sleep better at night earning a more conservative return, which is the tradeoff we chose for greater security.
Preservation of capital with a steady return.
Series A-3 - “Profit Participating” Trust Units: Currently returning 9% return year to date in September of 2024, plus the potential for profit sharing. All returns are calculated based on dividends being reinvested.
Series P - “Preferred” Trust Units: Returns are paid in priority to Series A-Units and are benchmarked with the Bank of Canada yields. Only available to Institutional and Accredited Investors. Please inquire for more information.
Series A unitholders may share in any excess net profits after the hurdle rate has been achieved. The excess profit sharing is split 70% to the Series A unitholders and 30% to the Fund’s Manager.
Tri City Capital Corp (TCCC), fully owned by Michael Goodman, has invested the first $1 million into Series A units that are subordinated to all other investment units. TCCC does not receive its distributions until after all other unitholders have received their distributions.
All fees (including lender, service, etc.) are paid into the capital pool, thus the investor benefits from all fees earned by management.
Capital is invested in a diversified portfolio of short-term mortgages, primarily residential and residential-construction mortgages in urban markets of Canada. Unless unanimously approved by our Credit Committee, loan-to-value ratios rarely, if even, exceed 75%.
Monthly, in cash or reinvested units. (DRIP)
10 Units - $10,000 (excluding institutional units)
Tri City Fund Management Ltd.
Starting at 1.25% per annum (may be higher for different series units)
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Our mortgage trust offering can only be purchased through Harbour Park Capital Partners, an Exempt Market Dealer regulated by BCSC.
Units in the trust are TFSA, RRSP, RRIF, LIF, RESP, LIRA eligible, and can be held in registered accounts at Olympia Trust or Western Pacific Trust.
The securities referred to herein are being offered by Offering memorandum. In BC this means everyone is eligible, subject to suitability as determined by Harbour Park and its agents. Other jurisdictions have different rules. If you interested in investing, please talk over your financial situation with dealing representative of Harbour Park.
All information herein is qualified by the offering memorandum, which should be carefully reviewed by prospective investors with advice from their professional advisors. This document does not represent a formal offering.
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Harbour Park Capital Partners Ltd.
Suite 350 - 1201 Pender Street WestVancouver. B.C. V6E 2V2
Email: info@hpcpl.ca
Phone: (604) 569-2015
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Address
Suite 350 - 1201 Pender Street West Vancouver. B.C. V6E 2V2
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Monday – Friday,
except holidays
09:00 – 17:00
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