The fund will focus on developments in Ontario's burgeoning urban centres
Dorr Capital has announced its new mortgage fund giving Canadians the opportunity to invest in real estate and diversify their investment portfolio.
The fund, known as RealAlt Investments, will allow investors to “benefit from a large network of developers that are building communities in the GTA and Ontario urban centres,” Dorr Capital stated in its announcement.
These mortgage investments in local home developments represent the clearest challenge to conventional investment tools so far, the company claimed. RealAlt targets “above average return on investment and preservation of capital,” on the order of approximately 7.5% return.
“As Canada aims to welcome more than 1.2 million immigrants by 2023, the demand for family homes will continue to grow,” Dorr Capital said.
The fund will especially focus on Ontario’s urban centres that have higher-than-average population and economic growth, such as the GTA, Barrie, Kitchener-Waterloo, and others.
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Brian Dorr, president of Dorr Capital, said that the fund stemmed from the company’s ethos of real estate investing not being limited to high-net-worth individuals.
“RealAlt investments was developed for investors seeking income, primarily from distributions, diversification of their investment portfolio, and wanting to share the risk with others,” Dorr said. “The fund seeks to provide returns that have lower correlations to stock or bond market indices in the form of income and capital preservation with monthly distributions.”
Structured as a mortgage fund trust, RealAlt qualifies for registered investment plans such as RRSP and TFSA. Clients can expect to receive a monthly distribution, or they can reinvest the interest back into the fund, the company said.
