# Syndicated mortgages thoughts ?



## lonewolf (Jun 12, 2012)

Advertising of earning 7% - 8% on Syndicated mortgages came up on my computer. Never herd of Syndicated mortgages before what are your thoughts on them ?


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## Rusty O'Toole (Feb 1, 2012)

You can do as well or better locally, lending your money through a mortgage broker. I would sooner do this than join someone else's syndicate.


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## dougboswell (Oct 25, 2010)

There are pros and cons to syndicated mortgages. As the money would be pooled and spread over different properties this helps reduce the risk factor. I would want to know the fees that are being taken off the top by the principals of the fund.

I think you can do better return wise by acting as a private lender. It is better to let a mortgage broker do all the leg work for you -credit checks, ability to repay etc. You can set the terms of the loan, charge an acceptance fee etc and have all your costs paid for by the borrower.
The downside is if you have all your money invested in 1 or 2 properties and 1 borrower defaults your source of income is in jeopardy. If you are a 2nd or 3rd mortgage holder you are at the bottom of the totem pole to get your investment back. The rewards are good but you must really do your due diligence.


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## vkhazin (Mar 1, 2016)

*tier1advisory.com - any experience*

Anyone had experience dealing with tier1advisory.com?


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## Just a Guy (Mar 27, 2012)

A syndicated mortgage on steroids is what nearly brought the US economy and financial industry to its knees in 2007...they were, of course, pitched as being "perfectly safe".


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## Berubeland (Sep 6, 2009)

http://hardcorevalueblog.blogspot.ca/2015/01/earn-8-fixed-interest-fortress-real.html

The largest syndicated mortgage company Fortress Real Development AKA FDS Brokers, BDMC, Centro Mortgage which are companies that sell "Fortress" product is run by these guys http://www.theglobeandmail.com/repo...ated-share-prices-bcsc-rules/article20519867/ and to save you reading the whole article... Phoenix and senior officials including Jawad Rathore and Vincenzo Petrozza separately reached a settlement with the Ontario Securities Commission in 2011, admitting they acted contrary to the public interest in conducting the share purchases by clients. The company and three officials agreed to pay penalties, costs and repayment of gains totalling over $3.3-million.

Also you might want to read this article and the comments including the threatened lawsuits and retractions. http://www.mortgagebrokernews.ca/news/fsco-warns-about-unlicensed-syndicated-mortgages-182229.aspx

My opinion is that I would rather buy lottery tickets than invest in syndicated mortgages but what do I know?


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## seko (Apr 16, 2015)

Thank you Berubeland, I was exactly looking for this type of info. I had been to one of the presentation by FDS brokers. In the entire presentation they touted it as a "risk free" , "guaranteed " , "safe" .


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## Berubeland (Sep 6, 2009)

I think the Collier Center investors and the Brad Lamb investors would heartily disagree with that assessment of "safe" "risk free" and "guaranteed" It looks like Collier investors are completely wiped out (Although I have heard that Fortress is promising them that they will be made whole somehow) I know that for at least 3 Brad Lamb projects investors have received notice that they will be "accruing interest" and I have heard that none of the Brad Lamb projects are paying interest. 

http://www.grantthornton.ca/services/reorg/bankruptcy_and_insolvency/Madycollier 

http://washpost.bloomberg.com/Story?docId=1376-O2NT0X6JIJV401-6AO6OHMG0I2SQ2F9CA3O2TLMRA


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## seko (Apr 16, 2015)

Berubeland your info is correct but not sure if it a Brad Lamb project. There was this one guy at the presentation who had invested around 70k a year back and had a wishful thought that he will receive quarterly interest payments that he can use to pay off bills. He still hasn't received any interest payments . I overheard the broker saying to him that that "don't worry your interest is getting accrued".


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## Berubeland (Sep 6, 2009)

They are definitely Brad Lamb projects. I have the emailed copies of the letters sent to the investors.


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## Ponderling (Mar 1, 2013)

currently reading Morgenstern and Rosner - Reckless Endangerment, as a follow up to Lewis -The Big Short - the book version.

these two combined will put you so far from pooled mortgages your far end will pucker when someone starts to say ... safe investment....


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