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Investment with greybrook capital

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  • May 2nd, 2019 12:42 am
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[OP]
Member
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Dec 26, 2006
220 posts
12 upvotes

Investment with greybrook capital

Any Rfder have invested money with greybrook capital? Any reviews or input?
51 replies
[OP]
Member
User avatar
Dec 26, 2006
220 posts
12 upvotes
Friend of mine told me return is around 20%...minimum investment is 150K
Newbie
Nov 13, 2013
4 posts
10 upvotes
Markham
******* wrote:
Nov 21st, 2012 2:39 pm
Your friend is taking a huge risk for that 20%. Are you comfortable with risking 100% of your capital to gain 20%?

Most people think they are. Most people aren't.

If those businesses fail, he loses his capital. It is extremely risky, hence the anticipated returns.

That said, I highly doubt that 20% return is expected each and every year. It’s the same as the stock market. With 100% equity, some years you will be up 10, 15, and 20+%, others down 10, 20, or 30+%

God bless your friend. These sort of investments are for those who can afford to risk a portion of their savings on highly risky investments. I.e. multi millionaires. Not your average Joe with $250,000 in RRSP’s, a modest home and 3 children.



Actually these types of investments DO exist and yes they DO pay out high interest and they ARE secured on title so a lot of times they are much more secure than stocks or mutual funds.
I've been researching these types companies for a while and even have invested huge sums of cash - RRSP and even lines of credit on them.
Here's the GOOD's of mortgage investing : (1) secured on title - so you can go after someone's property if the investment fails (2) I will always know the value of my investment as it is a mortgage not a stock market roller coaster ride (3) the returns are pre-defined on a contract (4) they are usually RRSP - TFSA - LIRA - RESP etc. eligible. The downside are (1) usually takes a long time to actually invest (few weeks to a couple of months ) (2) there is an investment term of 1-5 years and your money is locked until then (3) way more paperwork than buying mutual funds or stock (4) need to do your homework on the various brokers or investment houses to make sure they are following all the rules and paying out on a timely basis.
As more people look at these investments and say that it's "too good to be true" and pass it up, it allows more of us investors to pick and choose the best deals available. I've heard it said that you can ask a bank to give you a return of 8% on your GIC - assuming you have enough to invest - and head office might actually accommodate you.
Deal Fanatic
User avatar
Jun 19, 2009
5661 posts
1541 upvotes
Scarborough
******* wrote:
Nov 14th, 2013 12:17 pm
Great first post. :facepalm:

Another naive investor.

Second to the ridiculous BS you just spewed, please direct me to a bank or any legitimate financial institution that will give me 8% GIC's. I'm sure I have "enough" to invest. My clients and I would love it. When do you plan on waking from this dream of yours?
Just look at the post count lol
Moving along...
Member
User avatar
Jun 15, 2009
374 posts
93 upvotes
AGInvest wrote:
Nov 14th, 2013 10:42 am
Actually these types of investments DO exist and yes they DO pay out high interest and they ARE secured on title so a lot of times they are much more secure than stocks or mutual funds.
I've been researching these types companies for a while and even have invested huge sums of cash - RRSP and even lines of credit on them.
Here's the GOOD's of mortgage investing : (1) secured on title - so you can go after someone's property if the investment fails (2) I will always know the value of my investment as it is a mortgage not a stock market roller coaster ride (3) the returns are pre-defined on a contract (4) they are usually RRSP - TFSA - LIRA - RESP etc. eligible. The downside are (1) usually takes a long time to actually invest (few weeks to a couple of months ) (2) there is an investment term of 1-5 years and your money is locked until then (3) way more paperwork than buying mutual funds or stock (4) need to do your homework on the various brokers or investment houses to make sure they are following all the rules and paying out on a timely basis.
As more people look at these investments and say that it's "too good to be true" and pass it up, it allows more of us investors to pick and choose the best deals available. I've heard it said that you can ask a bank to give you a return of 8% on your GIC - assuming you have enough to invest - and head office might actually accommodate you.
You are a moron. Leave and never come back.
Sr. Member
Mar 3, 2009
722 posts
219 upvotes
Ottawa, ON
******* wrote:
Nov 14th, 2013 12:17 pm
Great first post. :facepalm:

Another naive investor.

Second to the ridiculous BS you just spewed, please direct me to a bank or any legitimate financial institution that will give me 8% GIC's. I'm sure I have "enough" to invest. My clients and I would love it. When do you plan on waking from this dream of yours?
For sure this is the danger of taking random advice from someone online. This is a good lesson to be careful and always do due diligence.
Newbie
Nov 13, 2013
4 posts
10 upvotes
Markham
Sorry folks, I know there are a lot of naysayers out there but please remember that I'm not twisting anybody's arm to buy anything here just informing. You asked and I answered honestly. I don't deserve the abuse.
I've been doing private lending and commercial lending for over two years now and am taking in at least 1% per month in interest plus a 2% lender bonus.
Nobody has to believe me but I leave you a list of companies that can possibly help you get to where I am or better.
Please do your research on them first before you make unfounded criticisms that investing at more than 10% per year consistently is a hoax.

ProFunds
Private Lending and Commercial Lending 8%-20% per year return payable monthly
Properties all over Canada and 1-3 year terms
www.profunds.ca

High Rise Capital
Commercial Lending on their own projects paying 10%-14% per annum payable quarterly
GTA property only and 4-5 year terms
http://www.hirisecapital.com/

Tier 1
Commercial Lending on their own projects paying 10%-12% per annum payable quarterly
Conventrating mainly on retirement residences and medical builds
http://www.tier1capitalcorp.com/

Titan
http://titansinv.com/

Canadian Lending
http://www.canadianlending.ca

Alliance Real Capital
http://www.alliancefinancing.com/index. ... nvestments

Greybrook Capital
Commercial Lending on their own projects paying 20%-25% per annum payable quarterly
Terms are lengthy at 4-5 years
http://www.greybrook.com/

Walton Realty & Management
http://www.waltonrm.com/

Equity Builders
Buys depressed housing complexes and sells units for rental purposes and does property mgmt
www.equitybuilders.ca
Last edited by AGInvest on May 27th, 2014 11:35 am, edited 2 times in total.
Newbie
Jul 15, 2014
1 posts
1 upvote
Mississauga, ON
Thank you AGInvest for sharing your findings. I am also interested in investing with private lending like with Greybrook. Few questions, if you please or any one else can help me:

1- Have you actually invested with Greybrook? If yes then which particular project?

2- I know the down side is money is lock down for this many years, but other then that what is the worst case scenario?

3- If the company goes bankrupt or something, what will happened to the investor's money?

4- I have been trying to find out more about Greybrook, but seems too good to be true, what is the down side? I haven't heard or met a single person invested with them.
Either their marketing is too good, cant seems to find a flaw. Like for Fortress's CEO I have found
http://www.cbc.ca/news/canada/manitoba/ ... -1.1319587

Any help would be appreciated.
Thank you.
Newbie
Jul 21, 2014
3 posts
3 upvotes
North York, ON
I know of people who have invested with Greybrook.
These are what some would consider "Very Sophisticated" investors.
They run or sold a very large company and usually are older, 50+
They understand the risks involved but the biggest reason they choose to invest is UNDERWRITING. The Development Partners are the top developers in the city. When was the last time you saw Tribute, Cityzen, Fernbrook, Stafford/Goldman, Castlepoint Failed? These are longstanding reputable running Companies. When they underwrite, they carefully manage expectations. The Project is already owned or is under contract. They know what the land cost is. The projects don't always have approved zoning for their developments but rarely ever do developers get the opportunity to purchase pre-approved lands at a price that works. Other underwriting consists of realistic sales projection. They monitor Absorption(How fast units sell), Price Per Square Foot, understand what the costs will be (Usually have a 3rd Party Cost Consultant upfront, not necessarily needed at the time of acquisition but is needed for Construction Financing).

Developers also put up their own money. This again is not a prerequisite. Not every developer has or has liquid enough cash to put up as their own equity. However, when the Developers are putting Millions of their own money into these deals they are committed and motivated to make sure the development proceeds as planned.

Investors receive a "Preferred Return" meaning X% (Example 9%/year) goes to the Investor before any money goes to the Developer.

My preference as an investor (I don't sell any investments) is Equity. Meaning Net of Fees (which is important to consider) this cash is used for the project. As if with Interest (Syndicated Mortgages) it means these interest payments comes out of investor capital. Which means more money needs to be raised and interest/fees on top.

The reason equity pays more is because more cash is used for the project rather than coming out to pay for interest and the fees. The same deal can be done with less cash meaning the split can be managed better and overall return for the investor.

The reason the mortgages are only paying 8-12% is because if the interest was higher the deal wouldn't make sense unless they got a fantastic deal (Or inherited the land). These are usually sold to Retail investors (25-100K).

Greybrook like other Equity Players have minimums of 150K is because of Accredited Investor Securities rules.

2. If the underwriting is done correctly & you have a competent developer, I believe it's better to have the cash in and not paying me a dividend/interest payment. The money should be used for the project. For example if you have a 100K, 4-year investment and after 3 years you have received 24% in interest payments (and 20% Fees on top), that 44% (44K) out of 100K. Cash flow is very important especially prior to construction. That Cash is used for what it was intended to it bodes well. It's better to have that other 44K or 33K (if 10% Fee and 0 interest, in the project.)

Sometimes the project is doing very well (but maybe a few months delayed timing but sale prices have gone up, meaning a better return) if you have interest coming to you, could put the project at risk.

3. Misconception if the project runs out of money, not necessarily 'bankrupt' is that the first mortgage lender is going to go Power of Sale. They can refinance the debt (to a larger LTV) or same/less LTV (If the Property appraises for more). This could give the needed cash to continue on schedule. If refinancing of the debt or more equity can not be raised (or makes sense to). Can sell the project to another Developer and work out so investors are still protected in that deal or can pay off the investors and make some of their principal, principal + some return or the anticipated return (Or sometimes more).

4. Greybrook is probably one of the most reputable Equity Capital groups in Toronto. There are some other ones. Don't be afraid to ask them these questions about them, the structure and specifics on the development.

I don't know much about Fortress. I have heard the rumblings and read the articles but I don't know anything other than that. If they're still in business, it means they probably did something which wasn't great but if they defrauded or did something illegal...they would be jailed or not be able to broker syndicate mortgages (although they are banned from Securities)
Jr. Member
Nov 9, 2012
119 posts
10 upvotes
GUELPH
******* wrote:
Nov 14th, 2013 12:17 pm
Great first post. :facepalm:

Another naive investor.
Content aside, I'm sure you know that it is possible to read RFD but never actually post. And, did you start with over 2000 posts? No. Would you recommend someone take your investment experience on your first 10 posts? Of course you would.

The number of posts on RFD does not equate to a persons investment experience. You're telling me you require hundreds of posts in order to offer or receive credible advice?
Jr. Member
Nov 9, 2012
119 posts
10 upvotes
GUELPH
And to clarify, I know nothing about this topic or Greybrook. Just irks me to frequently see someone being dismissed because of a low post count.

This isn't an exclusive club of genius investors, it's a public message board of people who share opinions.
Deal Fanatic
User avatar
May 2, 2006
6307 posts
1580 upvotes
GTA
LMFAO... It's so obvious all the "testimonials" in this topic come from the same scammer with multiple accounts, it's not even funny. Do you honestly think people are THAT stupid???

AGInvest/RealInvestments/InvestorGuild: You could've at least picked more original usernames, genius. :facepalm:
Deal Addict
Feb 5, 2010
2764 posts
176 upvotes
Regarding: http://titansinv.com/ - These guys sponsor MLSPE (Raptors, Leafs)
Another one to add to the list: http://www.centurionapartmentreit.com/

Unfortunately for the OP it will be tough to find reviews from people that are active investors with these type of investments simply because they are geared towards 'Accredited Investors' (http://www.sprott.com/legal/are-you-an- ... e-fund-lp/) or those willing to invest $150k+. I doubt you'll find too may of those on RFD.
Jr. Member
Aug 31, 2013
137 posts
8 upvotes
Brampton
izzyzz wrote:
Jul 26th, 2014 10:00 pm
AGInvest/RealInvestments/InvestorGuild: You could've at least picked more original usernames, genius. :facepalm:
Furthermore, they all make similar grammatical mistakes and all their posts are exclusive to this thread. They do sound convincing tho. :lol:

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