DREI hosting Fortress Real Capital event in Wallaceburg

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A Wallaceburg business is excited to host a free event next week at the UAW Hall.

Direct Real Estate Investors will be welcoming Fortress Real Capital to town for a free event on Thursday, August 21 at 7 p.m.

Our own Aaron Hall caught up with Erik Mitchell, a managing partner with DREI along with his brother Kevin, for a Q and A to discuss the event.

Aaron: What is this big Fortress Real Capital event all about?

Erik: My brother and I have been full time real estate investors for the last seven plus years. We have been following Fortress for the last five years and have noticed they are doing a lot of different projects. They have grown tremendously. They offer syndicate mortgages which is an opportunity for people to invest in big development projects and earn a fixed 8% interest rate, with potential to make even higher returns if the project goes well.

The event itself is taking place next Thursday August 21st at 7 pm at the UAW Hall. One of the VP’s from Fortress is going to come down and explain who Fortress is and what their syndicated mortgages are all about. This free information session will last about 1.5 hours and during the presentation everyone’s questions will be answered

Aaron: Why should people go?

Erik: Since we started Kindergarten, we have been taught how important it is to work hard for our money, but there has been no education and no focus on making our money work hard for us.

So what has happened is we simply go out, work hard, and give our money to somebody else and just forget about it. We take no ownership or responsibility over our financial future.

People should go to the event to take control of their financial future. The stock market has been extremely volatile for the last decade plus and it is going to continue to be and those people that get educated and diversify their investments will be much further ahead in the future.

This is an opportunity for people to learn how to get their money out of the stock market and into a real physical project like a condo development or subdivision development, whatever the case may be. Syndicate Mortgages through Fortress allows people to achieve true diversification and everyone should go to learn how it works.

We actually wrote a book on why Mutual Funds are not your best investment option and I encourage you to download it now at www.bankconspiracy.ca. Get educated and take control of your financial future.

Aaron: Who should go?

Erik: Anyone who is ready to take control of their financial future should go.

But more specifically, anyone with RSP’s should get registered for the event because with RSP’s there are such limited options for investments. These syndicate mortgages are RSP eligible and they offer you a fixed 8%+ return.

And it doesn’t matter if you are ready, and or able, to invest right now. I encourage you to get out to the event so that you fully understand these fantastic investment opportunities. That way when you get to a point and you are ready to invest, you know what options you have available.

Aaron: What is a syndicate mortgage and how does it work?

Erik: It’s an investment that is registered against a specific development project. People choose a specific project to invest in and their money is used until that project is complete. After the project is complete they get their initial investment back along with the 8% fixed interest (which is paid out during the term of the investment) as well as a DLF fee that is usually projected to be another 3-4% a year.

Developers actively look to raise capital to cover start up costs (soft costs) for their development projects. So they approach Fortress, who in turn evaluates each project and carefully chooses the best of the best. Actually they have evaluated 960 deals and currently have 54 active projects.

As for the ‘soft costs’ I mentioned; that is for the developers to build model homes or do ‘pre-sales’ for condo units; build a sales office etc. The great thing, where all the money goes it increases the value of the project giving more security to the investors. Your investment is actually registered against the project and the development project itself is your security for your investment.

When you see those big buildings going up in Toronto, a lot of those are starting with those Fortress development syndicate mortgages.

Aaron: What is DLF?

Erik: A DLF is a Deferred Lender’s Fee. And it allows you to share in the profits of the project you have invested in. The better the project does the higher the DLF.

A few months ago Fortress finished of a project in 24 months a paid out their syndicate mortgages. The project was a success and on top of the 8% fixed return, the investors in the project received a DLF of 6%. Because it was a 2-year investment, investors made an additional 3% ROI (return on investment) each year on their syndicate mortgage for a total of yearly average of 11% returns.

Aaron: Can people invest their registered investments, such as their Registered Retirement Savings Plan (RRSPs) and Tax Free Savings Account (TFSA)?

Erik: Yes they can!

Being RSP eligible is the awesome part of these investments and it really is the main reason Kevin and I are hosting this LIVE event in Wallaceburg. They allow people to actually diversify their investment portfolio and make a great rate of return in doing so.

The banks talk about diversification by investing in Mutual Fund A, B and C, but as we all know in 2008 when the market crashed, it did matter where you were ‘diversified’ in the market. Mutual fund A,B,C and D all experienced significant losses.

Fortress syndicate mortgages allow people to achieve true diversification by getting some of their money out of the market and into some of the best real estate projects in the country.

Aaron: Why Fortress?

Erik: Because if their size. They are hands down the biggest, most successful syndicate mortgage company in Canada.

There are different syndicate mortgage companies out there, but typically they are run by the developer themselves. The developer might have one or two projects on the go. The fact that they are so small makes them more risky.

Fortress on the other hand currently has 54 projects worth over 3.5 Billion dollars. This allows them to adjust when need be and more importantly, it gives them the ability to take over projects that aren’t doing so well and ensure the project is completed and everyone gets paid.

Aaron: Why haven’t more people heard of these investments?

Erik: Fortress is based up in Toronto and around the GTA these investments are huge!

Down here no one offers Fortress syndicate mortgages so that is why we decided to bring them down for this free information session.

Aaron: How can people learn more about the event and Fortress?

Erik: To learn more about this exciting event you can go to the Facebook event page. We have posted a bunch of great information and registration details are there as well. To visit the page simply click on this link: https://www.facebook.com/events/1661703250720554/?ref_dashboard_filter=upcoming

To learn more about Fortress you can visit their website at: http://fortressrealcapital.com/

Aaron: How can people reserve their spot?

Erik: People can either give us a call or shoot us an email:

Erik Mitchell 519-784-7188, emitchell@investdrei.ca or Kevin Mitchell 519-401-1136, kmitchell@investdrei.ca

They can also register online at http://agents.fdsbroker.com/drei/

This article is sponsored content and is a part of our Keep It Local Business Spotlight feature. Contact Dana Haggith for more information – 519-784-4610 or dana@sydenhamcurrent.ca.

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