You have tons of questions, and we have answers.

Take a look at our most frequent asked questions and answers.

General F.A.Q.'s

These are a list of general most frequently asked questions from potential clients & existing ones too.


Can’t find what you’re looking for? – Still have questions?

The minimum investment may vary from fund to fund; however, the most common minimum investment is $25,000.

No. We do not accept registered funds at this time.

No, you do not have to be an accredited investor to get started with us. If you are a friend, family member, or close business associate to any of the employees at Coachwood Capital, you can invest with us. 

Click here to find out if you qualify as an accredited investor.

While the fund is open, you can add additional funds. Once the fund is full or closes, you cannot add additional funds. You would have to wait for the next fund to open.

Yes, you can live in another province and invest with us. Additionally, if you are American, you can invest with us, but you would be investing into the U.S. LP and not the Canadian LP.

We disperse distributions monthly on the 15th. We begin distributions the month following when the rent is collected. For example, when rents are collected January 1st, expenses will be paid throughout January, and the net income will be distributed on February 15th. 

A REIT is a publicly traded company. We are a private investment fund.

If Dan Crosby passes away then the fund will continue to be managed by employees of the management company.

Dan purchases all of the properties himself prior to raising capital. After raising capital, he keeps anywhere from 10% – 50% ownership.

Real estate investment fund F.A.Q.'s

Can’t find what you’re looking for? – Still have questions?

Distribution is not necessarily treated as a dividend but will retain its character from an income tax perspective (i.e. rental income, capital gain, interest, etc.). Depending on performance of the LP, initial distributions may also be treated as a “return of capital.”

To simplify with a reasonable assumption, the LP will likely have “rental income” or “rental loss” in each year until it sells the property…therefore the investors will get a tax slip with their proportionate share of this “rental income” or “rental loss”.  At disposition, there will likely be a “capital gain”…the investors will then get a tax slip with their proportionate share of this “capital gain”.

Because of depreciation and other costs there may actually be a “loss” or “rental loss” for tax purposes in the US LP…if this is the case and you still make cash distributions to investors (which you will) then there technically is no “income” to distribute…so essentially you are giving them back some of their own money return of capital from an accounting perspective.

The US LP will be depreciating the properties pursuant to US income tax rules, therefore investors will obtain the benefit of these deductions.

The investment term will depend on the fund. Typically, terms are 3 – 5 years.

Income is produced by rental income from the tenants and the sale of refinancing of the property after the maturity date.

We have averaged a historical maturity benefit return of 8% – 10%. However due to market conditions beyond our control this rate of return can vary.

Yes. Coachwood Capital offers a monthly distribution based on the performance of the fund. Historically this has been 4% – 5% annually.

Investment opens once a property has been acquired and requires a capital injection.

Yes we own the real estate assets regardless of the external investment. This ensures all acquisitions and holdings are scrutinized and all due diligence has been completed by our qualified team of professionals.

 

Your investment is applied to the down payment of the properties. The rest of the property is funded by traditional financing through financial institutions.

All properties that we acquire have a maximum of 80/20 loan to value (LTV). This ensures your investment is safe and not over-leveraged.

Private Mortgage Fund F.A.Q.'s

Can’t find what you’re looking for? – Still have questions?

Your investment is guaranteed by the physical property your investment has funded.

All investments are pre-qualified by our team. Once the investment has cleared our pre-approval process an appraisal is requested to ensure the property LTV is a minimum of 80/20.

Your investment will fund mostly residential properties in the Southweatern Ontario and Essex County region.

We require a minimum of one year.

The target return of the fund to its investors is 7.5% – 9%.

No investment is guaranteed, but ultimately your investment has real estate security behind it. Furthermore, we mitigate any risk with our sound underwriting procedures and lending practices, as well as regular assessment of each loan’s performance.

No. Coachwood Capital acquires all mortgage assets prior to applying your investment. This allows the investor to apply their investment immediately.

Distributions are sent monthly on the 15th by way of either bank draft or electronic money transfer.