Mortgage Loan Program Summary

Designed for private lenders to lend their capital to our wealth lending platform. The participating lender has full confirmation their funds are held securely at Morgan Stanley, NY. The funds are never drawn down, exposed to any risk and never encumbered. With earning starting at 12% p.a. and interest paid monthly.

Mortgage Loan Program Details

The private lenders participating in this program simply lend their capital to our wealth lending platform in a fully secure manner, whereby our group will never personally handle the funds or have any ability to draw them down. 
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Participating lenders will sign a deposit agreement with our group and will deposit their funds using one of the three Fiduciary options provided (their choice): 
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  • a lawyer's IOLTA (escrow) account
  • a registered Paymaster's FDIC- insured account
  • a registered Trustee

The Fiduciary receives the funds on behalf of our group and will transfer the funds to Morgan Stanley as per the fully executed loan agreement between the two parties (participating private lender and our wealth lending platform). The fiduciary will transfer the funds to a Morgan Stanley "non-depletion" account and Morgan Stanley will provide the fiduciary with a “Custodial Guarantee” which they will share with the participating lender. This will confirm that the funds are with Morgan Stanley and they are maintained in a non-depletion account further verifying that all funds (in the program) will never be encumbered or depleted.  

Benefits of Participating 

This program is much more secure than lending funds to a real estate project. Private lenders participating in this program fully mitigate the risk typically associated with funding private mortgages where they see their funds spent directly into real estate projects. Here the lender has full confirmation that their funds are securely held securely and never exposed to any risk or encumbrance. Our wealth lending platform assumes all the risk for funding the projects and pays the private lender starting at 12% pa (1% per month) for as long as the funds remain in position.  Interest payments are made monthly

How We Benefit From Your Participation

We benefit from your participation in the program because your capital acts as a "balance sheet enhancement" and our group is able to expand their own credit lines with the funds held at Morgan Stanley. As a result they use the expanded credit from their credit lines to lend to projects that can't qualify for our other programs and to generate additional returns as well as pay interest to lending clients.  

Details & Minimums

Minimum amount is $1M USD. The participant lender needs to commit their capital for 12 months, but will have a 60 day exit option should they decide to use it. In this scenario there would be a 3% fee levied on them by Morgan Stanley, if they exit prior to their 12 month commitment.  There is also a 4% Administrative Fee deducted when the funds arrive at Morgan Stanley, as a result the Interest Rate for the FIRST year will be 4% higher, so the client (participant lender) is refunded the 4% fee over the first 12 months. 

Your funds are never in the field or exposed to any risk or encumbrance. 

NEXT STEPS & PROCEDURES

The private lender provides their Customer Information Sheet (CIS) or KYC and Proof of Funds (POF) (current account statement) to allow our group to clear compliance protocols and verify the client has the qualifying capital (QC) to move forward.

  1. ​Once confirmed, our group will provide a standard Loan Agreement that outlines the deal, including the specific obligations of the fiduciary. A signed copy of the agreement is given to Fiduciary to guide all procedures going forward. 
  2. Participating lender will wire funds to Fiduciary Bank account.. The Fiduciary will transfer Loan funds to “Non-Depletion” Custodial Account at Morgan Stanley New York. 
 
  3. The wealth lending platform, by virtue of the funds held at Morgan Stanley, will expand their own credit line for the purpose of financing the mortgages within their portfolio. The process to release funds from these credit lines and to get those funds placed into approved mortgages typically takes 60-90 days. 
  4. The participating lender will begin earning interest within 60-90 days following the confirmation of their funds at Morgan Stanley. If for any reason the placement takes longer than 90 days and the participating lender was not apprised of that possibility, they will be credited with a 2% interest “bonus” for that calendar year. 
 
  5. Interest Payments to the participating lender will be structured on a monthly basis, based on a pre-set recurring “anniversary date” each month. 
​If you are interested in exploring this opportunity

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