Accredited Investor

• Net income before taxes exceeded $200,000 in each of the 2 most recent calendar years;
• Net income before taxes, when combined a spouse, exceeded $300,000 in each of the 2 most recent calendar years;
• The investor, as an individual or together with a spouse, has liquid financial assets (after liabilities) of more than $1MM (not including real estate, automobiles, and other fixed assets)
• The investor, as an individual or together with a spouse, has net assets (after liabilities) of at least $5 million  (includes all fixed and liquid assets, cash, investments and real estate)

Eligible Investor

• Net assets, alone or with a spouse, in the case of an individual, exceed $400,000*
• Net income before taxes exceeded $75,000 in each of the 2 most recent calendar years and who reasonably expects to exceed that income level in the current calendar year, or
• Net income before taxes, when combined with a spouse, exceeded $125,000 in each of the two most recent calendar years and who reasonably expects to exceed that income level in the current calendar year

Corporation/Partnership Net Worth Test

• A corporation, partnership, or other legal entity that has net assets of at least $5 million, as shown on its most recently prepared financial statements, will qualify as an accredited investor on the same basis as the individual/spouse net worth test.

All income generated by the mortgage investments is considered interest income and is reported on a T5 statement and is fully taxable. Investors can employ a variety of tax strategies such as investing through a trust, corporate entity, or registered accounts and should speak with their tax advisors to determine the most beneficial way to invest.

Know Your Client (KYC) procedures are a critical function to assess client risk and a legal requirement to comply with Anti-Money Laundering (AML) laws. Effective KYC involves knowing a customer’s identity, their financial activities and the risk they may pose. KYC is a fundamental practice to protect any organization from fraud and losses resulting from illegal funds and transactions. In addition, KYC assists in identifying client suitability to make the desired investment.