First Mortgages

Returns for our investors on first mortgages arranged by us are currently yielding an annual return of 10% to 19%.

We only fund first mortgages. The reason is that it gives our investors security. In the event of a default by the borrower, our investors have first priority.

We will only fund up to a maximum of 75% of the value of the property. This again protects our investors in the event of a commercial real estate market decline.

We will only lend against commercial properties. These could include:

• Apartment buildings
• Office buildings
• Mixed use buildings
• Parking garages
• Industrial properties
• Retail properties including strip malls
• Retirement homes
• Self-storage facilities
• Specialty and non-conventional properties

The reason we fund only commercial properties is this is where we have our expertise and this is where we have a competitive advantage over traditional lenders. It is often difficult for someone seeking to purchase or re-finance a commercial property to borrow money from a traditional lender such as a bank. Typically banks are immensely conservative investors and will provide only 50% to 65% of the property value in a first mortgage. Purchasers however often require a higher level of financing. Furthermore, it takes banks an undue length of time to decide whether to fund and can take up to two months to provide such funding. Commercial real estate deals are lost from such delay.

This presents an opportunity for Hazleton Financial as we are able to finance a larger percentage of the property value, we can make an expeditious, although well considered funding decision, and we can provide the funds faster. This is where an investment in Hazelton Financial comes in. Annual returns of 10 to 19% secured by first mortgages are ideal for investors seeking above average yet secure yields.

What is a Syndicated Mortgage?

An investment in a syndicated commercial first mortgage is an investment in an individual mortgage secured by a specific property, as compared to having an investment in a pool of different mortgages. An investor owns a pro rata share (i.e. a share proportionate to their financial contribution) of a specific mortgage in a specific property. Because Hazelton’s mortgages are funded by numerous investors they are referred to as “syndicated.”

Benefits of a Syndicated Mortgage

• You invest directly in an individual specific first mortgage as part of a syndicate and not in a discretionary pool of mortgages. In other words, you choose which properties and projects in which to invest.
• Investment returns are currently in the range of 10% to 19% per year and are paid to you monthly thus providing a safe, steady income stream.
• In the past five years, Hazelton and our affiliated company, The Rose and Thistle Group Ltd. (a real estate developer that syndicates equity investments) have experienced a negligible loss rate.
• Hazelton handles all monitoring, servicing and administrative functions for a modest fee based upon the actual return paid to you, not upon your capital investment.