February 12, 2025 • 23 mins
In this episode, Scott sits down with Jeremy Friedberg, Corporate Director of Seaport Credit Canada, to discuss how Canadians can leverage their retirement funds for international real estate investments. Jeremy shares his journey from Ontario to Mexico and explains how Seaport Credit helps Canadians access their retirement funds for global investment opportunities.
Key Timestamps:
[0:00] Introduction and Guest Background
- Jeremy's journey from Richmond Hill to Cancun
- Transition from resort real estate to Seaport Credit
- Background in international business
[5:30] 💼 Understanding Seaport Credit's Services
- Explanation of Canadian International Real Estate Loan (CIRL)
- Qualification criteria for potential borrowers
- Process of accessing retirement funds
[10:15] 📊 Financial Breakdown
- 6% loan interest rate
- 4% targeted return through SVF Trust
- Effective cost of 2% after first year
- Detailed fee structure explanation
[15:45] 🏠 Investment Applications
- Global investment opportunities
- Property renovation options
- Solar panel investments
- Multiple loan possibilities
[20:30] 💡 Investment Examples and Success Stories
- Apartment complex renovations
- International property improvements
- Solar panel installations
- Multiple loan case studies
Key Concepts Covered:
CIRL Loan Qualification Requirements:
- $100,000 annual income (individual or combined with spouse)
- OR $400,000 in combined net assets
- Must be a qualified Canadian
Loan Process and Structure:
- 20-year term
- No prepayment penalties
- 6% interest rate
- 4% targeted return through SVF Trust
- Net effective cost of approximately 2% after first year
Investment Options:
- Pre-construction properties
- Finished homes
- Land
- Renovations
- Commercial properties
- Vacation ownership
- Sustainable improvements (solar panels)
Important Financial Considerations:
- All costs rolled into the loan
- No upfront fees required
- Insurance requirements
- Exchange rate considerations
- Processing timeframe (approximately 6 weeks)
Real World Applications:
- Property renovations and improvements
- Solar panel installations for energy cost reduction
- Multiple property investments
- Global real estate opportunities
Resources Mentioned:
- Seaport Credit: seaportcredit.com
- SVF Trust: svftrust.com
- Turnian Financial (Exempt Market Dealer)
Important Note:
*Jeremy emphasizes that while Seaport Credit provides the loan structure, specific investment decisions should be made in consultation with qualified financial advisors. The information provided is for educational purposes only.*
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to the wisdomlifestyle money show i'm your
host scott dillingham today.
I have an awesome guest germyfriedberg and germy is Well,
actually, what is your role atSeaport Credit?
I don't want to butcher this.
What is your role at Seaport?
I run the company.
I am the currently the corporatedirector of Seaport Credit
Canada.
(00:20):
Awesome.
Awesome, and you guys are doingamazing things, which this whole
episode is to discuss that.
So we want to dive into that,but I guess before we do I want
to hear your story, Jeremy.
How did you get to, you know,growing up, whatever, to where
you are now, to running acompany?
Excellent.
Yeah.
Thank you.
Great to be here on the show.
(00:41):
Uh, I grew up in Richmond Hill,Ontario, just north of Toronto.
And then I went to WesternOntario.
And then after, shortly afterthat, I got into the resorts.
Real estate vacation ownershipbusiness.
That's cool.
Yeah, and and I I took it Ithought I was gonna come down to
(01:01):
Cancun where I currently livefor six months but I end up
really liking it and I stayedhere and This whole area the
Riviera Maya that goes fromTulum right north to just north
of Cancun what they call PlayaMojeres Is probably the biggest
real estate area not only inMexico, but probably the
Caribbean.
(01:22):
Uh, And so, you know for thelast I got here in october of
2002 Thinking i'd stay sixmonths and I ended up staying I
ended up uh meeting my The girlthat would be my wife the
following year.
Uh, we got married she uhshortly at after that We started
a real estate company calledchappa properties named after
her uh, and then I was stillkind of just helping out with
(01:46):
that in the backend stuff, but Iwas very active in resort real
estate, very, very high endvacation ownership memberships.
Okay.
And then what ended up happeningis while I was, uh, the
corporate sales director for acompany called the fives, which
a lot of your listeners might befamiliar with cause they got
various different properties.
It came across my desk of thiscompany called Seaport Credit
(02:08):
Canada.
And then I found out that one ofmy old time friends that I'd
known since the early 90s Hadstarted it and this was a few
years ago.
And so I was actually referringclients, Canadian clients that
were buying real estates in thiscondo tell project, uh, that
would be able to use a Seaportcredit Canada, then what
happened is between them andanother friend, that's a partner
(02:30):
of the company.
They were, they felt they wantedsomeone that understood Canadian
business as well asinternational business.
They finally convinced me lastyear to join them and it's been
absolutely amazing since I'vereally, really enjoyed it.
That's cool.
That's cool.
And for those listening, right,because we're talking about
Seaport Credit, but we haven'tdiscussed what you guys do.
(02:52):
So what is it that you do highlevel?
I know we have a presentationwe're going to go over, but high
level for those that are justlike wanting to make sure that
they want to listen to the wholeepisode.
What do you guys do?
So, what we do is we helpCanadians with retirement funds,
we set up a loan that's backedup by those retirement funds,
and then that loan is used topurchase all sorts of different
(03:13):
real estate products, anywhereoutside of Canada.
Yeah, which is amazing.
And I know that we've workedwith you in Mexico and obviously
the U.
S.
as well.
So that's really, really coolstuff.
Yeah, yeah, we're really excitedabout some of the stuff we're
doing with your whole team.
They're just amazing by the wayWell, thank you.
Thank you.
And and and for those listeningto so these loans That jeremy is
(03:35):
speaking of we can then use itas a down payment for the real
estate So we'll help get you thefinancing.
Jeremy ultimately gives you thedown payment Be alone.
So super cool stuff.
So why don't you yeah, why don'tyou dive into the the product?
Uh, share the screen now forthose Listening, obviously,
you're not going to be able toshare it So we'll make sure that
(03:57):
we are detailed in thedescriptions of anything and
those who might be watching thisObviously you can so excellent.
So That's a little bit about me.
Just kind of what we talkedabout Also, you'll notice down
here on the bottom, a petenthusiasm, a pet enthusiast,
uh, my wife and I do animalrescue.
So if you hear some barking inthe background, they're just
(04:19):
very happy to be on the show aswell.
A couple of disclaimers here.
We'll skip those.
Okay.
Uh, and then we'll talk about ushere.
So you can see it.
We got started.
C4 Credit Canada actually gotstarted in 2020 and ironically,
it was started to help Canadiansout of very high interest.
ownership timeshare loans.
And then what happened in 2020is the pandemic and nobody was
(04:44):
visiting the resort.
So the company, uh, luckily madea pivot and they started
focusing on, on real estate.
And, uh, what you're looking athere on the screen is our
office.
Our head office is in Toronto,uh, right by the airport.
And then our internationaloffice is in Cancun, uh, Mexico.
That's where, uh, my team is atright now.
I'm actually working out of myhome office right now.
(05:04):
Uh, and, uh, let's just go on tothe other one.
Our loans are good for preconstruction, finished home,
land, renovation, commercial,vacation ownership as well.
Our main loan that we're talkingabout here is what we call our
Canadian International RealEstate Loan, and CIRL for short,
C I R L, and this is a veryshort kind of, uh, summary of
(05:28):
what it is.
It's exclusively for qualifiedCanadians who meet any of the
following criteria.
So number one, uh, they can earnat least 100, 000 a year or earn
100, 000 combined with theirspouse, or they have a 400, 000
in net combined assets.
What happens is that, uh,something called an exempt
(05:48):
market dealer, and we'll talkabout that in a second, invest
your available retirement fundsinto trust units.
Support the Seaport loan.
What's nice about this, Scott,is, you know, all the costs are
ruled up into the loan, so noone's coming out of pocket, up
front.
There's not a, a fee or adeposit that's all ruled right
into the loan there.
And so my next slide here justshows, uh, kind of a, a cash
(06:11):
flow and how the, the how, the,how money travels on.
So, currently most peoplelistening to this probably have
their re uh, retirement funds.
In a place like BMO or Scotia.
Uh, what happens then is thatmoney is moved to what they call
an approved RRSP trusteecompany.
And a lot of the listeners wouldbe familiar with companies like
(06:32):
Olympia.
Uh, we deal with Western Pacificfor most of Canada.
And anybody living in Quebec, wedeal with a company called
Odyssey Trust.
From there, uh, the funds arethen, uh, what happens is class
A trust unit securities areissued.
Uh, from a mutual fund trust,what they call an MFT.
And the name of that is SVFTrust.
(06:53):
And we'll give you links for youand your listeners, uh, that you
can go out and check thatwebpage, uh, so you can see more
about that.
All of this is handled by anexempt market dealer, what they
call an EMD.
We use a company called TurnianFinancial.
I know you've met with the ownerof Turnian Financial, Alison.
She's wonderful, wonderful,wonderful.
Um, and basically for anybodywho doesn't know what an exempt
(07:14):
market dealer is, the way I liketo say it is this, if you're
going to buy real estate inCanada, you need to go to a
licensed real estate broker.
If you're going to buy stock,you need to do a stock, go to a
stock broker that's licensed.
When it comes to buying exemptmarket products, which is what
this falls into, you have todeal with an exempt market
dealer or an EMD.
From there, what happens isSeaport issues a loan for that
(07:35):
amount.
Uh, and then that loan, thatmoney get goes to the vendor,
the seller, the developerescrow, uh, or in your case, I
know you deal with a lot ofpeople that set up corporations
and do investment projects inthe States, whoever that end
project is there.
So those are the five steps thatthe, that the money kind of goes
through.
Uh, the main thing that we getasked a lot of time is how much
(07:58):
time does it take?
Well, from the time it goes froma client's bank till the time it
ends up in its final destinationcould be somewhere around six
weeks.
Uh, believe it or not, themajority of that time is from
the bank to the approved RRSPtrustee company like Western
Pacific.
Uh, that, that sometimes cantake four to five weeks and then
the rest is almost immediatethere.
Now on the way back, uh, it justworks in reverse.
(08:20):
So can they, clients are payinga loan back at 6 percent
interest to the seaport toseaport credit Canada.
Uh, it's a 20 year, uh, loanthat's open with no prepayment
penalties.
And what happens is becausetheir money is, has been issued
trust unit certificates from theMFT called SBF Trust, clients
are getting back 4 percent peryear, or sorry, a targeted
return of 4 percent per yearfrom SBF Trust.
(08:45):
Clients are getting a targetedreturn of investment of 4
percent per year from the SBFTrust.
Okay, can I interject here for asecond?
Sure.
So if I'm, you know, listeningto this and I'm hearing this,
so, so I have to pay SeaportCredit a loan of roughly 6
percent interest, which isactually very low for a loan.
(09:05):
Like, it actually is a very goodinterest rate.
But because my funds are stillinvested through SVF Trust that
they're estimating or targetinga return of 4%.
So let's just say they get the4%.
Then that means I'm onlyactually paying 2 percent per
annum to tap into the RRSP fundsto invest in real estate.
(09:27):
Is that right?
That is absolutely correct.
And in the next two slides I'mgoing to show you some real
examples of cost.
The way, I love the way this wasbroken down a couple weeks ago
from an investment raiser.
Even with the fees, if you lookat it like this, that the cost
of the client in the first yearis 6 percent with all the fees
in.
And then after that, it's forthe rest of the 19 years, it
(09:48):
works out to about 2 percentcost.
So I'm going to show you someexamples of this.
Now, what I'm showing you,Scott, all of this is available
at seaportcredit.
com.
I'll show you the link after,and this one I'm going to go
through all the fees there foranybody's listening to this.
FAQ question number one goesthrough all these in details.
So one thing you're going to,uh, one thing that we're very,
(10:08):
very careful about, and as acompany, we have to do third
party audits every year.
And so everything we try to dois fully transparent here.
So what you're seeing on thescreen here is a lender fee of
6%, a processing fee of 2, 500U.
S.
And then what we call anexchange differential, and this
can go anywhere from two to 4%,most people that, and probably
(10:31):
not your network, but, but mostpeople out there that don't know
much about international.
You know, moving the money,typically what they do when they
want to see the exchange rate,they go to Google and they go
one USD and one CAD and they geta rate.
They don't know about the buy.
They don't know about the sell.
I mean, because it takes sixweeks to go from somebody's
account to the end seller, thefluctuations can be, you know,
(10:52):
well, just look what's happenedin the last six.
Nevermind last six weeks.
Look what's happened to theCanadian dollar in the last two
days.
It's been crazy.
And full transparency here as acompany, we make money on this.
I mean, we're a business.
Sometimes we lose money, but Imean, in a perfect scenario, we
do make money on that.
Our clients still love usbecause even when you add
everything up, like I said, itworks out to be about 6 percent
the first year and then 2percent after that.
(11:14):
So the loan interest, we'vetalked about this, it's a 6
percent loan.
There's a servicing fee, uh, 4.
99 Canadian.
Uh, the annual trustee fee, forthose of you that are listening,
that are part of Olympia Trustor Western Pacific, know that
this is a fee that they charge.
Uh, it's less than a couplehundred dollars a year.
The first year is actuallyincluded.
Uh, and then loan insurance.
(11:34):
This is an unsecured loan.
And because clients are usingtheir retirement funds, what
happens is those retirementfunds have to go back into their
retirement account.
So God forbid, let's say 10years in, right?
Let's say you, let's, let's usean example of a hundred thousand
dollars and you have 50, 000 ofit paid off and somebody, you
(11:55):
know, dies.
That responsibility to payingoff that retirement fund falls
to the family and we don't wantto see that happen.
So we've, uh, we've, we'vevetted some, some insurance
companies.
We found one that's called Atlasand they're out of, uh, Ottawa,
Canada.
And what they will do is theywill provide insurance on the
loan.
And, and they're one of thesecompanies when you get the
quote, they give you like 10 to20 different choices.
(12:18):
You can pick the one.
And because they do businesswith us, it's very, very simple.
Now a client doesn't have to gowith them.
But I don't know any clientsthat, you know, maybe if
somebody owned their owninsurance company, they want to
use their own product, but it'svery, very simple.
Uh, so these are all the fees.
And again, Scott, these are allavailable on the link I'm going
to send you.
So people can see this and checkthis out on their own time.
(12:38):
What I got, sorry, can I ask youanother question?
Sure.
So the S, SVF fund.
Yes.
Yes.
So I know they're targeting a 4percent yield.
Is there any way, or maybe not,right?
And I'm just, again, thinking ofa question a listener might ask,
but is there any way that youcan choose what SVF invest in or
(12:59):
is it's like, like that is theirown fund and that's the targeted
return that they're offering?
Do you know what I mean?
Like, can we pick asset classeswhen they manage the funds or
no?
Excellent question.
And that the only, there's onlytwo people or two ways that
people can get information aboutthat one is from a registered
exempt market dealer.
The other is to go to SPF trust.
(13:21):
And that exact question, I canput it on the screen that
answers that that's FAQ questionnumber three, and it answers
that exact question for people.
Okay, so I got here an actualexample, uh of a first year
breakdown and we'll just take aAn amount here of a hundred
thousand dollars Uh, I don'tknow if you can hear the barking
in the background.
It's going right now.
(13:42):
Okay Uh the loan let's take ahundred thousand dollar loan Uh,
and the monthly payment on thatyou can see here is fifteen
hundred nine dollars that's on a20 year loan Again, that's fully
open people can pray that outanytime and that includes the
four dollar ninety nine centsservice fee You can see the
annual principal of eightthousand two hundred and three
dollars Uh the annual interestof nine thousand eight hundred
(14:05):
and forty four dollars and thenan estimated insurance And of
course that's going to vary butyou can see three hundred
dollars.
So the total paid out eighteenthousand and forty seven dollars
Uh, the targeted return, uh, tothe RRSP principal return is 8,
203.
The distribution earned fromthat targeted return of 6, 562.
(14:26):
You got total deposited into theRRSP at the end of the year, 14,
765.
So, uh, you've paid out justover 18, you've gotten back just
under 15.
Your total cost on a 100, 000 U.
S.
loan in the first year is 3, 341Canadian.
Okay.
Uh, and what I'll do is I'llshine up here on the screen.
Uh, the three sites that Italked about, Seaport Credit
(14:49):
Canada, sorry, Seaportcredit.
com, svftrust.
com, and, uh, our exempt marketdealer, Tourney Financial.
That's super cool.
That's super cool.
So then for the investor, one ofthe things that you told me in
the past that was veryinteresting, so I know we're
working with you, uh, in Mexicoand U.
S., but these loans can be usedworldwide, correct?
(15:14):
It doesn't have to be justMexico or USA.
Is that right?
That's correct.
It's anywhere outside of Canada.
Okay.
So that's super cool.
Yeah.
What are some of the craziestthings that you've seen people
invest when they get thesefunds?
What do you see?
Or can you not say?
Yeah, no, I think my favoritething that I see is a lot of the
(15:35):
things that wealth genius peopledo where they'll go in and
they'll find an undervaluedapartment complex.
Sorry, I went into my Spanishthere.
All right, an apartment complexand then they'll raise the funds
from the investors and a lot ofthem, what they'll do is they'll
(15:56):
use this, they'll use our loanfor that investment.
They fix it up, they improve thearea, they raise the rent, they
raise the value and then they doa sell on this, you know, five
years later and the returns, uh,that people, people make are,
are pretty, pretty incredible.
We have a mutual friend, as youknow, that's a special in this
and that Thomas, he's justincredible at it.
(16:16):
On his webinar, uh, again, acouple of weeks ago.
And then of course, I mean, thatthat's the money side of it.
That's really cool.
Uh, we're really excited aboutgetting into stuff like solar
panels.
There's a lot of Canadian, uh,for renovations and, you know,
in third world countries, Idon't know if Canadians are
familiar with this, but the costfor electricity is, is huge.
(16:37):
Now the number one area in theworld that Canadians invest
internationally.
It is actually in Mexico morethan any other area.
In fact, if you look at Tulumand Playa del Carmen and Puerto
Morelos, those three alone fitinto the top five places where
Canadians put their money.
So a lot of times whenCanadians, I mean my real estate
side on this, people get shockedwhen they see some of the
electric bills.
(16:58):
So the idea that, that theycould now, you know, use this
money and invest in solar panelswhere their electric bill goes
down to nothing.
You know, and it's connected tothe grid or they can be self
sufficient in the jungle That'sreally really that that's
probably what i'm really excitedabout the most coming up and
we're That's super cool.
So then, then for these loansthen, cause you're saying solar
(17:19):
panels.
So if I get a loan, um, I canuse the funds for anything
you're saying.
Well, anything related to realestate.
So it could be renovations.
Uh, it could be like, if you'reanything that we can show, uh,
that you're doing it.
The only thing you can't do isthe loans can't go back to you.
Right.
So we have a couple of clientsright now that found out about
(17:40):
us too late and boy, do they,they're, you know, they, they,
they spent a few hundredthousand dollars and.
They're sitting on this in theretirement funds and they're
asking how can they getreimbursed?
You can't do that.
But, uh, if they were to investin solar panels or do a redo or
renovate that they can tie in.
And of course, as you know, thatbrings up the equity of their
investment.
That's perfect.
So then quick question.
(18:00):
So let's say, let's say you dida loan for a hundred thousand,
like what you said, um, but Ionly need 50 K for a property.
Does the balance of the loanstay with you and I can use it
on a different transaction or doI have to use the full 100 K?
On one single transaction.
Uh, that's an excellentquestion.
You have a couple of differentoptions.
It's going to depend if you'regoing, if you're buying the
(18:24):
property and then you areimmediately doing a reno.
Or putting in those solarpanels.
That's probably, we haven't hadthis come up, but that's
probably something that we coulddo if it's one of these things,
uh, okay.
I only need 50, 000 right now,but I know next year, Hey, next
year it's come around.
We just set up another loan.
So we have clients and, uh, if Ican, if I could call out her
(18:45):
name, she's, uh, she's vital to,to our organization, you know,
her, uh, Deanna actually has aclient that's, that's now on his
fourth loan with us.
Wow, that's crazy.
So I'm just thinking out loudhere.
So say that say that's the caseWhere I want to tap into my rsps
and I want this loan, but youknow Maybe the property is a
(19:09):
small down payment.
I don't want it to go to wasteCould I just increase the down
payment on that property?
Could I just put the full 100kdown and then get a smaller
mortgage then in that case?
We have people that pay thewhole property out with their,
so what happens is the exemptmarket dealer.
Uh, the process is somebodytalks to us.
Uh, we fill out a couple offorms and then we tend to book a
(19:30):
call with, uh, Alison Travers,who is the president and owner
of Tourney and Financial.
We have a great workingrelationship with her.
You've met her.
She's amazing.
Uh, she was going to be on thisshow, but Unfortunately, she's
doing a call with a client rightnow, which is good.
Uh, but what happens is she willthen, uh, let that, that client
know how much they can qualifyfor, and there's a bunch of
(19:52):
different categories.
Uh, and we're real, real happy,uh, that there's a new category,
uh, for people that have eitherhigh net worths.
Uh, or, uh, that they arebusiness investors, meaning that
they are, they are investing indifferent, uh, properties, you
know, that, uh, that they havethat are, that are income
property.
So we're pretty excited aboutthat, but that's all, those are
(20:13):
all things that need to bediscussed with the registered
exempt market dealer.
Got it.
Got it.
No, that's perfect.
Well, listen to me.
I really appreciate it.
I know we're coming up to theend of the show here.
So what I'm going to do, uh,cause I know my whole team, uh,
works with you and your team.
So what I'll do is I'll put, uh,the booking links there.
If anybody wants wants to chatand we can make those
(20:33):
introductions to you.
Obviously you've got those linksthere that people can also look,
look at.
So we'll, we'll add those theretoo.
Um, but was there anything elsethat you wanted to say before
we, we ended the show for today?
Yeah, it's just it's reallyexciting.
If somebody's teetering on thefence right now and you're in
Canada, uh, And you're lookingat you know doing some of these
(20:55):
deals like like in the statesUh, especially if you're in a
warm climate like florida orarizona.
It's just It's just a, or ifyou're, you know, in those areas
there, you got yourself a secondhome or if you're in Ohio or, or
I know you've done a lot ofstuff in Michigan, you know,
where people are doing it morefor an investment, but if they
are going to do somewhere thatprovides them with a second
home, it's more than, I don'tknow how to describe it when,
(21:18):
but when, when you have aCanadian that invests In the
area that I'm from, uh, all of asudden they want to take Spanish
class.
They want to learn how to dance.
They want to learn how to cook.
It really, it's a really nicething.
They become familiar with thelocal fauna.
They, you know, they get a moreglobal outlook on other than
just, you know, the nine to fivethat they go to work with every
(21:41):
day.
And it's, and they, andespecially when it gets cold in
Canada, we all know what that'slike.
Sounds glamorous for the peopleonline of a white Christmas, but
trust me when you're wiping thesnow off your car, boy, the idea
of like, you know, wiping thesand off your feet off the beach
feels really nice.
Yeah.
It sounds much better.
Yeah.
We do sand angels here, not snowangels.
(22:01):
That's it.
That's perfect.
I'll be doing them in a week.
We got that real estateinvesting crew.
So awesome Yeah, so we'll bedoing that.
But anyways, thank you so much.
Jeremy.
It was great.
I love uh chatting with you Andand I love your product.
I think it's super cool.
And uh, just wanted to have youon so thank you very much.
Scott.
Have a great day.
Yeah, you too.
Take care
Welcome back to the wisdomlifestyle money show i'm your
host scott dillingham today.
I have an awesome guest germyfriedberg and germy is Well,
actually, what is your role atSeaport Credit?
I don't want to butcher this.
What is your role at Seaport?
I run the company.
I am the currently the corporatedirector of Seaport Credit
Canada.
(00:20):
Awesome.
Awesome, and you guys are doingamazing things, which this whole
episode is to discuss that.
So we want to dive into that,but I guess before we do I want
to hear your story, Jeremy.
How did you get to, you know,growing up, whatever, to where
you are now, to running acompany?
Excellent.
Yeah.
Thank you.
Great to be here on the show.
(00:41):
Uh, I grew up in Richmond Hill,Ontario, just north of Toronto.
And then I went to WesternOntario.
And then after, shortly afterthat, I got into the resorts.
Real estate vacation ownershipbusiness.
That's cool.
Yeah, and and I I took it Ithought I was gonna come down to
(01:01):
Cancun where I currently livefor six months but I end up
really liking it and I stayedhere and This whole area the
Riviera Maya that goes fromTulum right north to just north
of Cancun what they call PlayaMojeres Is probably the biggest
real estate area not only inMexico, but probably the
Caribbean.
(01:22):
Uh, And so, you know for thelast I got here in october of
2002 Thinking i'd stay sixmonths and I ended up staying I
ended up uh meeting my The girlthat would be my wife the
following year.
Uh, we got married she uhshortly at after that We started
a real estate company calledchappa properties named after
her uh, and then I was stillkind of just helping out with
(01:46):
that in the backend stuff, but Iwas very active in resort real
estate, very, very high endvacation ownership memberships.
Okay.
And then what ended up happeningis while I was, uh, the
corporate sales director for acompany called the fives, which
a lot of your listeners might befamiliar with cause they got
various different properties.
It came across my desk of thiscompany called Seaport Credit
(02:08):
Canada.
And then I found out that one ofmy old time friends that I'd
known since the early 90s Hadstarted it and this was a few
years ago.
And so I was actually referringclients, Canadian clients that
were buying real estates in thiscondo tell project, uh, that
would be able to use a Seaportcredit Canada, then what
happened is between them andanother friend, that's a partner
(02:30):
of the company.
They were, they felt they wantedsomeone that understood Canadian
business as well asinternational business.
They finally convinced me lastyear to join them and it's been
absolutely amazing since I'vereally, really enjoyed it.
That's cool.
That's cool.
And for those listening, right,because we're talking about
Seaport Credit, but we haven'tdiscussed what you guys do.
(02:52):
So what is it that you do highlevel?
I know we have a presentationwe're going to go over, but high
level for those that are justlike wanting to make sure that
they want to listen to the wholeepisode.
What do you guys do?
So, what we do is we helpCanadians with retirement funds,
we set up a loan that's backedup by those retirement funds,
and then that loan is used topurchase all sorts of different
(03:13):
real estate products, anywhereoutside of Canada.
Yeah, which is amazing.
And I know that we've workedwith you in Mexico and obviously
the U.
S.
as well.
So that's really, really coolstuff.
Yeah, yeah, we're really excitedabout some of the stuff we're
doing with your whole team.
They're just amazing by the wayWell, thank you.
Thank you.
And and and for those listeningto so these loans That jeremy is
(03:35):
speaking of we can then use itas a down payment for the real
estate So we'll help get you thefinancing.
Jeremy ultimately gives you thedown payment Be alone.
So super cool stuff.
So why don't you yeah, why don'tyou dive into the the product?
Uh, share the screen now forthose Listening, obviously,
you're not going to be able toshare it So we'll make sure that
(03:57):
we are detailed in thedescriptions of anything and
those who might be watching thisObviously you can so excellent.
So That's a little bit about me.
Just kind of what we talkedabout Also, you'll notice down
here on the bottom, a petenthusiasm, a pet enthusiast,
uh, my wife and I do animalrescue.
So if you hear some barking inthe background, they're just
(04:19):
very happy to be on the show aswell.
A couple of disclaimers here.
We'll skip those.
Okay.
Uh, and then we'll talk about ushere.
So you can see it.
We got started.
C4 Credit Canada actually gotstarted in 2020 and ironically,
it was started to help Canadiansout of very high interest.
ownership timeshare loans.
And then what happened in 2020is the pandemic and nobody was
(04:44):
visiting the resort.
So the company, uh, luckily madea pivot and they started
focusing on, on real estate.
And, uh, what you're looking athere on the screen is our
office.
Our head office is in Toronto,uh, right by the airport.
And then our internationaloffice is in Cancun, uh, Mexico.
That's where, uh, my team is atright now.
I'm actually working out of myhome office right now.
(05:04):
Uh, and, uh, let's just go on tothe other one.
Our loans are good for preconstruction, finished home,
land, renovation, commercial,vacation ownership as well.
Our main loan that we're talkingabout here is what we call our
Canadian International RealEstate Loan, and CIRL for short,
C I R L, and this is a veryshort kind of, uh, summary of
(05:28):
what it is.
It's exclusively for qualifiedCanadians who meet any of the
following criteria.
So number one, uh, they can earnat least 100, 000 a year or earn
100, 000 combined with theirspouse, or they have a 400, 000
in net combined assets.
What happens is that, uh,something called an exempt
(05:48):
market dealer, and we'll talkabout that in a second, invest
your available retirement fundsinto trust units.
Support the Seaport loan.
What's nice about this, Scott,is, you know, all the costs are
ruled up into the loan, so noone's coming out of pocket, up
front.
There's not a, a fee or adeposit that's all ruled right
into the loan there.
And so my next slide here justshows, uh, kind of a, a cash
(06:11):
flow and how the, the how, the,how money travels on.
So, currently most peoplelistening to this probably have
their re uh, retirement funds.
In a place like BMO or Scotia.
Uh, what happens then is thatmoney is moved to what they call
an approved RRSP trusteecompany.
And a lot of the listeners wouldbe familiar with companies like
(06:32):
Olympia.
Uh, we deal with Western Pacificfor most of Canada.
And anybody living in Quebec, wedeal with a company called
Odyssey Trust.
From there, uh, the funds arethen, uh, what happens is class
A trust unit securities areissued.
Uh, from a mutual fund trust,what they call an MFT.
And the name of that is SVFTrust.
(06:53):
And we'll give you links for youand your listeners, uh, that you
can go out and check thatwebpage, uh, so you can see more
about that.
All of this is handled by anexempt market dealer, what they
call an EMD.
We use a company called TurnianFinancial.
I know you've met with the ownerof Turnian Financial, Alison.
She's wonderful, wonderful,wonderful.
Um, and basically for anybodywho doesn't know what an exempt
(07:14):
market dealer is, the way I liketo say it is this, if you're
going to buy real estate inCanada, you need to go to a
licensed real estate broker.
If you're going to buy stock,you need to do a stock, go to a
stock broker that's licensed.
When it comes to buying exemptmarket products, which is what
this falls into, you have todeal with an exempt market
dealer or an EMD.
From there, what happens isSeaport issues a loan for that
(07:35):
amount.
Uh, and then that loan, thatmoney get goes to the vendor,
the seller, the developerescrow, uh, or in your case, I
know you deal with a lot ofpeople that set up corporations
and do investment projects inthe States, whoever that end
project is there.
So those are the five steps thatthe, that the money kind of goes
through.
Uh, the main thing that we getasked a lot of time is how much
(07:58):
time does it take?
Well, from the time it goes froma client's bank till the time it
ends up in its final destinationcould be somewhere around six
weeks.
Uh, believe it or not, themajority of that time is from
the bank to the approved RRSPtrustee company like Western
Pacific.
Uh, that, that sometimes cantake four to five weeks and then
the rest is almost immediatethere.
Now on the way back, uh, it justworks in reverse.
(08:20):
So can they, clients are payinga loan back at 6 percent
interest to the seaport toseaport credit Canada.
Uh, it's a 20 year, uh, loanthat's open with no prepayment
penalties.
And what happens is becausetheir money is, has been issued
trust unit certificates from theMFT called SBF Trust, clients
are getting back 4 percent peryear, or sorry, a targeted
return of 4 percent per yearfrom SBF Trust.
(08:45):
Clients are getting a targetedreturn of investment of 4
percent per year from the SBFTrust.
Okay, can I interject here for asecond?
Sure.
So if I'm, you know, listeningto this and I'm hearing this,
so, so I have to pay SeaportCredit a loan of roughly 6
percent interest, which isactually very low for a loan.
(09:05):
Like, it actually is a very goodinterest rate.
But because my funds are stillinvested through SVF Trust that
they're estimating or targetinga return of 4%.
So let's just say they get the4%.
Then that means I'm onlyactually paying 2 percent per
annum to tap into the RRSP fundsto invest in real estate.
(09:27):
Is that right?
That is absolutely correct.
And in the next two slides I'mgoing to show you some real
examples of cost.
The way, I love the way this wasbroken down a couple weeks ago
from an investment raiser.
Even with the fees, if you lookat it like this, that the cost
of the client in the first yearis 6 percent with all the fees
in.
And then after that, it's forthe rest of the 19 years, it
(09:48):
works out to about 2 percentcost.
So I'm going to show you someexamples of this.
Now, what I'm showing you,Scott, all of this is available
at seaportcredit.
com.
I'll show you the link after,and this one I'm going to go
through all the fees there foranybody's listening to this.
FAQ question number one goesthrough all these in details.
So one thing you're going to,uh, one thing that we're very,
(10:08):
very careful about, and as acompany, we have to do third
party audits every year.
And so everything we try to dois fully transparent here.
So what you're seeing on thescreen here is a lender fee of
6%, a processing fee of 2, 500U.
S.
And then what we call anexchange differential, and this
can go anywhere from two to 4%,most people that, and probably
(10:31):
not your network, but, but mostpeople out there that don't know
much about international.
You know, moving the money,typically what they do when they
want to see the exchange rate,they go to Google and they go
one USD and one CAD and they geta rate.
They don't know about the buy.
They don't know about the sell.
I mean, because it takes sixweeks to go from somebody's
account to the end seller, thefluctuations can be, you know,
(10:52):
well, just look what's happenedin the last six.
Nevermind last six weeks.
Look what's happened to theCanadian dollar in the last two
days.
It's been crazy.
And full transparency here as acompany, we make money on this.
I mean, we're a business.
Sometimes we lose money, but Imean, in a perfect scenario, we
do make money on that.
Our clients still love usbecause even when you add
everything up, like I said, itworks out to be about 6 percent
the first year and then 2percent after that.
(11:14):
So the loan interest, we'vetalked about this, it's a 6
percent loan.
There's a servicing fee, uh, 4.
99 Canadian.
Uh, the annual trustee fee, forthose of you that are listening,
that are part of Olympia Trustor Western Pacific, know that
this is a fee that they charge.
Uh, it's less than a couplehundred dollars a year.
The first year is actuallyincluded.
Uh, and then loan insurance.
(11:34):
This is an unsecured loan.
And because clients are usingtheir retirement funds, what
happens is those retirementfunds have to go back into their
retirement account.
So God forbid, let's say 10years in, right?
Let's say you, let's, let's usean example of a hundred thousand
dollars and you have 50, 000 ofit paid off and somebody, you
(11:55):
know, dies.
That responsibility to payingoff that retirement fund falls
to the family and we don't wantto see that happen.
So we've, uh, we've, we'vevetted some, some insurance
companies.
We found one that's called Atlasand they're out of, uh, Ottawa,
Canada.
And what they will do is theywill provide insurance on the
loan.
And, and they're one of thesecompanies when you get the
quote, they give you like 10 to20 different choices.
(12:18):
You can pick the one.
And because they do businesswith us, it's very, very simple.
Now a client doesn't have to gowith them.
But I don't know any clientsthat, you know, maybe if
somebody owned their owninsurance company, they want to
use their own product, but it'svery, very simple.
Uh, so these are all the fees.
And again, Scott, these are allavailable on the link I'm going
to send you.
So people can see this and checkthis out on their own time.
(12:38):
What I got, sorry, can I ask youanother question?
Sure.
So the S, SVF fund.
Yes.
Yes.
So I know they're targeting a 4percent yield.
Is there any way, or maybe not,right?
And I'm just, again, thinking ofa question a listener might ask,
but is there any way that youcan choose what SVF invest in or
(12:59):
is it's like, like that is theirown fund and that's the targeted
return that they're offering?
Do you know what I mean?
Like, can we pick asset classeswhen they manage the funds or
no?
Excellent question.
And that the only, there's onlytwo people or two ways that
people can get information aboutthat one is from a registered
exempt market dealer.
The other is to go to SPF trust.
(13:21):
And that exact question, I canput it on the screen that
answers that that's FAQ questionnumber three, and it answers
that exact question for people.
Okay, so I got here an actualexample, uh of a first year
breakdown and we'll just take aAn amount here of a hundred
thousand dollars Uh, I don'tknow if you can hear the barking
in the background.
It's going right now.
(13:42):
Okay Uh the loan let's take ahundred thousand dollar loan Uh,
and the monthly payment on thatyou can see here is fifteen
hundred nine dollars that's on a20 year loan Again, that's fully
open people can pray that outanytime and that includes the
four dollar ninety nine centsservice fee You can see the
annual principal of eightthousand two hundred and three
dollars Uh the annual interestof nine thousand eight hundred
(14:05):
and forty four dollars and thenan estimated insurance And of
course that's going to vary butyou can see three hundred
dollars.
So the total paid out eighteenthousand and forty seven dollars
Uh, the targeted return, uh, tothe RRSP principal return is 8,
203.
The distribution earned fromthat targeted return of 6, 562.
(14:26):
You got total deposited into theRRSP at the end of the year, 14,
765.
So, uh, you've paid out justover 18, you've gotten back just
under 15.
Your total cost on a 100, 000 U.
S.
loan in the first year is 3, 341Canadian.
Okay.
Uh, and what I'll do is I'llshine up here on the screen.
Uh, the three sites that Italked about, Seaport Credit
(14:49):
Canada, sorry, Seaportcredit.
com, svftrust.
com, and, uh, our exempt marketdealer, Tourney Financial.
That's super cool.
That's super cool.
So then for the investor, one ofthe things that you told me in
the past that was veryinteresting, so I know we're
working with you, uh, in Mexicoand U.
S., but these loans can be usedworldwide, correct?
(15:14):
It doesn't have to be justMexico or USA.
Is that right?
That's correct.
It's anywhere outside of Canada.
Okay.
So that's super cool.
Yeah.
What are some of the craziestthings that you've seen people
invest when they get thesefunds?
What do you see?
Or can you not say?
Yeah, no, I think my favoritething that I see is a lot of the
(15:35):
things that wealth genius peopledo where they'll go in and
they'll find an undervaluedapartment complex.
Sorry, I went into my Spanishthere.
All right, an apartment complexand then they'll raise the funds
from the investors and a lot ofthem, what they'll do is they'll
(15:56):
use this, they'll use our loanfor that investment.
They fix it up, they improve thearea, they raise the rent, they
raise the value and then they doa sell on this, you know, five
years later and the returns, uh,that people, people make are,
are pretty, pretty incredible.
We have a mutual friend, as youknow, that's a special in this
and that Thomas, he's justincredible at it.
(16:16):
On his webinar, uh, again, acouple of weeks ago.
And then of course, I mean, thatthat's the money side of it.
That's really cool.
Uh, we're really excited aboutgetting into stuff like solar
panels.
There's a lot of Canadian, uh,for renovations and, you know,
in third world countries, Idon't know if Canadians are
familiar with this, but the costfor electricity is, is huge.
(16:37):
Now the number one area in theworld that Canadians invest
internationally.
It is actually in Mexico morethan any other area.
In fact, if you look at Tulumand Playa del Carmen and Puerto
Morelos, those three alone fitinto the top five places where
Canadians put their money.
So a lot of times whenCanadians, I mean my real estate
side on this, people get shockedwhen they see some of the
electric bills.
(16:58):
So the idea that, that theycould now, you know, use this
money and invest in solar panelswhere their electric bill goes
down to nothing.
You know, and it's connected tothe grid or they can be self
sufficient in the jungle That'sreally really that that's
probably what i'm really excitedabout the most coming up and
we're That's super cool.
So then, then for these loansthen, cause you're saying solar
(17:19):
panels.
So if I get a loan, um, I canuse the funds for anything
you're saying.
Well, anything related to realestate.
So it could be renovations.
Uh, it could be like, if you'reanything that we can show, uh,
that you're doing it.
The only thing you can't do isthe loans can't go back to you.
Right.
So we have a couple of clientsright now that found out about
(17:40):
us too late and boy, do they,they're, you know, they, they,
they spent a few hundredthousand dollars and.
They're sitting on this in theretirement funds and they're
asking how can they getreimbursed?
You can't do that.
But, uh, if they were to investin solar panels or do a redo or
renovate that they can tie in.
And of course, as you know, thatbrings up the equity of their
investment.
That's perfect.
So then quick question.
(18:00):
So let's say, let's say you dida loan for a hundred thousand,
like what you said, um, but Ionly need 50 K for a property.
Does the balance of the loanstay with you and I can use it
on a different transaction or doI have to use the full 100 K?
On one single transaction.
Uh, that's an excellentquestion.
You have a couple of differentoptions.
It's going to depend if you'regoing, if you're buying the
(18:24):
property and then you areimmediately doing a reno.
Or putting in those solarpanels.
That's probably, we haven't hadthis come up, but that's
probably something that we coulddo if it's one of these things,
uh, okay.
I only need 50, 000 right now,but I know next year, Hey, next
year it's come around.
We just set up another loan.
So we have clients and, uh, if Ican, if I could call out her
(18:45):
name, she's, uh, she's vital to,to our organization, you know,
her, uh, Deanna actually has aclient that's, that's now on his
fourth loan with us.
Wow, that's crazy.
So I'm just thinking out loudhere.
So say that say that's the caseWhere I want to tap into my rsps
and I want this loan, but youknow Maybe the property is a
(19:09):
small down payment.
I don't want it to go to wasteCould I just increase the down
payment on that property?
Could I just put the full 100kdown and then get a smaller
mortgage then in that case?
We have people that pay thewhole property out with their,
so what happens is the exemptmarket dealer.
Uh, the process is somebodytalks to us.
Uh, we fill out a couple offorms and then we tend to book a
(19:30):
call with, uh, Alison Travers,who is the president and owner
of Tourney and Financial.
We have a great workingrelationship with her.
You've met her.
She's amazing.
Uh, she was going to be on thisshow, but Unfortunately, she's
doing a call with a client rightnow, which is good.
Uh, but what happens is she willthen, uh, let that, that client
know how much they can qualifyfor, and there's a bunch of
(19:52):
different categories.
Uh, and we're real, real happy,uh, that there's a new category,
uh, for people that have eitherhigh net worths.
Uh, or, uh, that they arebusiness investors, meaning that
they are, they are investing indifferent, uh, properties, you
know, that, uh, that they havethat are, that are income
property.
So we're pretty excited aboutthat, but that's all, those are
(20:13):
all things that need to bediscussed with the registered
exempt market dealer.
Got it.
Got it.
No, that's perfect.
Well, listen to me.
I really appreciate it.
I know we're coming up to theend of the show here.
So what I'm going to do, uh,cause I know my whole team, uh,
works with you and your team.
So what I'll do is I'll put, uh,the booking links there.
If anybody wants wants to chatand we can make those
(20:33):
introductions to you.
Obviously you've got those linksthere that people can also look,
look at.
So we'll, we'll add those theretoo.
Um, but was there anything elsethat you wanted to say before
we, we ended the show for today?
Yeah, it's just it's reallyexciting.
If somebody's teetering on thefence right now and you're in
Canada, uh, And you're lookingat you know doing some of these
(20:55):
deals like like in the statesUh, especially if you're in a
warm climate like florida orarizona.
It's just It's just a, or ifyou're, you know, in those areas
there, you got yourself a secondhome or if you're in Ohio or, or
I know you've done a lot ofstuff in Michigan, you know,
where people are doing it morefor an investment, but if they
are going to do somewhere thatprovides them with a second
home, it's more than, I don'tknow how to describe it when,
(21:18):
but when, when you have aCanadian that invests In the
area that I'm from, uh, all of asudden they want to take Spanish
class.
They want to learn how to dance.
They want to learn how to cook.
It really, it's a really nicething.
They become familiar with thelocal fauna.
They, you know, they get a moreglobal outlook on other than
just, you know, the nine to fivethat they go to work with every
(21:41):
day.
And it's, and they, andespecially when it gets cold in
Canada, we all know what that'slike.
Sounds glamorous for the peopleonline of a white Christmas, but
trust me when you're wiping thesnow off your car, boy, the idea
of like, you know, wiping thesand off your feet off the beach
feels really nice.
Yeah.
It sounds much better.
Yeah.
We do sand angels here, not snowangels.
(22:01):
That's it.
That's perfect.
I'll be doing them in a week.
We got that real estateinvesting crew.
So awesome Yeah, so we'll bedoing that.
But anyways, thank you so much.
Jeremy.
It was great.
I love uh chatting with you Andand I love your product.
I think it's super cool.
And uh, just wanted to have youon so thank you very much.
Scott.
Have a great day.
Yeah, you too.
Take care
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