Given the significant increase in demand for private mortgages, Razer Capital has been able to expand to provide private financing all across Canada with the exception of the Yukon Territories and Whitehorse. Razer Capital has established a sliding risk scale when it comes to its lending portfolio. If a specific area is not as heavily populated or established, our exposure continues to decrease. We will never surpass 65% -70% of the homes equity in a rural area. In addition, our minimum home value is $100,000. We do not lend on properties that have no marketability.
Razer Capital has always taken a conservative approach in how it runs and operates its private mortgage fund. Our mission is to successfully provide our investors with strong yet consistent returns on their investments. Due to the diversity of our portfolio, certain investors receive higher rates of return in exchange for slightly higher risk. These returns also vary based on whether or not the loan is in 1st position or in 2nd position or whether or not the investor chooses to fund on properties outside of Ontario.
Razer Capital is prepared to provide an annual rate of return of 7%-10% on first mortgages and 10-14% on second mortgages. All of our mortgages are 1 year terms. Assuming the borrower has made successful payments, we would provide them with an offer to renew for an additional year. In addition, this particular fund will never exceed 75% of the home's equity in large urban city centers and never exceed 65%- 70% in rural areas. Thus providing secure and conservative exposure to the real estate market.
- By providing the borrowers with these private funds, specific debts are paid off in order to elevate cash flow pressure for the borrowers.
- There is a $250 NSF fee for every payment missed which emphasizes the importance of making a payment on time.
- It will be Razer Capital responsibility to follow up with the borrowers to find out the reason why they were not able to make the payment on time. Should a borrower miss an additional payment, they will be advised both verbally and in writing that the file will be handed over to our legal department.
- Razer Capital will contact the original broker. The broker will be provided with 2 weeks time to find an alternate source to replace the loan.
- Should the broker forfeit their opportunity to seek out alternative financing, it will be Razer Capitals responsibility to locate a substitute. Due to the conservative nature of these loans, our broker partner, JV Capital, will find an exit strategy quickly and efficiently. JV Capital has established relationships with high risk lending institutions and private investors who would assume these loans.
- Open communication channels: it is imperative that we are able to communicate consistently via email or telephone.
- When funds are requested by the lawyer, we will provide you with a detailed list that will provide where funds are to be allocated.
- Should any issues arise, we must be made aware of the problems as soon as possible.
- Establishing a proper set of guidelines to allows Razer Capital the ability to offer quick turn around with our brokers.