~A Turks and Caicos Mortgage Fund~
Economy
TCI is a British Overseas Territory, uses the US dollar and there is no direct taxation on income or property taxes.
Demand
Strong demand for non-bank real property financing due to reluctant and burdensome lending practices of the local banks.
Beaches
TCI is one of the most desirable tourist destinations in the Caribbean and attracts HNW real estate investors.
Location
Turks and Caicos is only an hour from Miami, and 3.5 hours from Toronto, making it an easily accessible location.
Solid Returns
Predictable, consistent returns on your investment in Turks and Caicos. Our careful approach to lending mitigates the risk to your principal; we only deal with the best borrowers and most marketable properties.
Low Management Fees
Our streamlined model keeps more money in your pocket. Our due diligence process allows us to lend at reasonable rates and still ensure our investors solid returns.
Conservative Approach
Our approach to managing the fund is simple. We only lend on marketable properties in great locations. We only lend to AAA clients with significant equity in the property. We make investing in TCI safe!
Benefits of Using G&P Capital
Experience
Experience. GPC has extensive legal, accounting and lending experience both on the island and abroad. This experience will mitigate the risk for our investors and ensure borrowers have a smooth financing process.
Risk Mitigation
Investment risk is mitigated by investing in many different properties rather than just one. Diversification is a key strategy for all investors, and a mortgage fund is no different. Default is inevitable, how it is handled is the difference.
Technology
Cutting edge technology for our borrowers and investors alike to manage the distances that are often involved with our clients. We believe it is important for you to have the information at your fingertips when and where you need it.
Internal Expertise
Our team is made up of lawyers, accountants and bankers, which gives us the broad knowledge base to deal with any situation. We are able to balance the needs of our investors while also advising borrowers on their real estate investment.
G&P Capital Limited is primarily focused on the residential tourism related market. Income producing properties that can be rented either short or long term, and produce enough income to cover most or all of the outstanding debt payments. We will also lend on land, and construction projects to increase the return to our investors.
Location, location, location. When buying or lending on real estate, location is key. We lend in all the prime locations on Provo, as well as North Caicos and Parrot Cay. The properties don’t have to be on the water, but they have to be in an area that has high marketability.
Most private lenders go up to 50 or 60% on the island, and we generally concur that this is a safe level of exposure. However, due to the higher quality of borrower, and the prime locations of our properties, the mortgage fund allows for 65%.
Our typical borrower will be a non-resident from the US, UK or Canada looking to purchase a vacation property in the Turks and Caicos. This segment has a particularly hard time qualifying with the local banks, which make them ideal candidates for the secondary loan market. We target strong, high net worth borrowers who will be able to manage fluctuations in the rental market.
Mortgage Fund vs Direct Private Lending
Investing in a mortgage fund and direct private lending may seem similar at first glance, however there are some significant differences.
In a fund, you are one of many investors on a loan, rather than the only investor. You are also invested in many loans, not just one.
If a situation arises where you need access to your capital, you can take it out of a fund.
At G&P, we have the expertise to underwrite mortgage files, collect slow payments, and handle any forced sales.
The returns are similar, but a fund carries less risk.
Matching investors to borrowers is a cheap and easy way for firms to look like they are operating a fund. Only a fund however mitigates your risk by diversifying your investment capital.
If you are currently private lending with another firm on island, let’s talk. We have a safer, smarter alternative, our G&P Mortgage Fund!