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Post by angryashell1 on Jan 27, 2020 20:52:54 GMT
To all those with investments in HarbourEdge MIC, BEWARE.Things can get worse with the value of your investments. By example, we were in a MIC called CareVest MIC, out of Calgary from 2005 to the present. They were doing mortgages in Ontario and the West. Yields were similar to Harbour Edge at the start and life was good. Then, in 2011, we started to hear the odd comment of bad mortgages, mainly in the West. Our Ontario rep quit over a dispute with the President, and that was our Key signal to wind our investments up at CareVest. But we did not. A new rep came along and talked up into signing a stack of paperwork that was needed because they were going public. What we did not know was, we signed paperwork that allowed key management the powers to do just about anything they wanted. The first thing they did was to cancel the public offering (which I now don't think they were ever going to do), and instituted a very difficult redemption process that made it quite hard to get your money out. It amounted to about 1% of your capital per month for 10 months a year. MIC interest, which got down to about 1% return, was paid monthly. Not only that but you have to re-apply for these redemptions each year and if you miss this narrow window, or do not fill out the paperwork to the N'th degree, then your redemption application is null and void, until the next year, you try again. In the meantime, CareVest has started new MICs under different names for future investors under the same umbrella, while milking our MIC out by charging (I believe) 2%, or close to 2% management fees,and not winding down the MIC, but doing new mortgages (I think), as no where do they say they are winding it up.
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> Communication is very sparse and we, as investors are in a position to "take what ever they want to give us" without being able to do anything constructive.
> I do not want to see this happen with HarbourEdge.
> We, at least have a group of knowledgeable investors that have created a dialogue with HE management and hopefully there will be a meaningful resolution to what could be a very bad outcome. That is why I am putting considerable emphasis on encouraging a reasonable agreement between these HE investors (Robert Mitchel et all) and HE, so that no one gets the "CareVest Treatment from Hell" and we have a decent resolution to the HE MIC problems that HE management created.
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worried
Junior Member
Super worried for my investment in HarbourEdge
Posts: 13
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Post by worried on Jan 27, 2020 21:44:35 GMT
Thank you for sharing, angryashell1If we look at their last financials and with HRAC properties not selling fast enough (we need 20-25 years at 4%-5% per year), HarbourEdge is already worse than 1 year ago (a lot). If the downtrend continues, we didn't see the worst yet  |
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Post by thebigshort on Jan 28, 2020 1:17:57 GMT
CanVest is featured in this interesting story published by the Globe How to lose money in real estateEvery bit of this report is informative, but TROUBLED MICS
it's what I liked best 'cause we can see various scenarios of HE end game "More than a dozen mortgage-investment firms have struggled with financial issues or been sanctioned by regulators over the last few years. Here are some of the companies that have run into problems for misleading investors and for taking higher risks than disclosed: 2014
Infuse Capital Corp.
The Alberta Securities Commission found the mortgage-investment firm had illegally traded in $2-million worth of securities and misled investors by not disclosing that some of their money was used to pay interest payments to the company's other mortgage investors. NorthStone Investment Fund Inc.
The Vancouver-based MIC was attempting to raise $250-million from investors when it was shut down by the B.C. Financial Institutions Commission because it was not registered as a brokerage and over concerns about past mortgage dealings of one of its directors. 2015
Atlantic Tides MIC
The Alberta mortgage company raised about $1.7-million from dozens of small investors to fund recreational developments in Nova Scotia. Provincial securities regulators found the company misled investors and banned its founder, Douglas Gordon Campbell, from trading for 15 years. 2016
Tier 1 Transaction Advisory Services
The Ontario-based syndicated-mortgage lender was forced into receivership by the Financial Services Commission of Ontario, which regulates mortgage brokers. The company had raised about $110-million from 16,000 investors to build a series of student residences and condos across Ontario. The regulator warned the projects "pose a significant risk to current and potential future investors." |
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Post by Moderator on Jan 28, 2020 1:39:31 GMT
It Can Get Worse!!! ...unless the Investors learn from similar experiences and take action because HE cannot ignore the shareholders that, ultimately, control the company. Here is an example:
Concerned shareholder group of trez capital mortgage investment corporation In short, "Concerned Shareholder Group", owning 7% of the Class A common shares of Trez Capital Mortgage Investment Corporation requisitioned the Trez Capital Board of Directors to call a special meeting of shareholders for the purpose of reconstituting the Board with three new independent directors, and voting on a special resolution to wind-up the Company. The Concerned Shareholders Group's Recommended Course of Action
"We believe only an en-bloc sale of the company or portfolio or an organized wind-up (by way of ceasing new mortgage origination and returning capital to shareholders) will address these concerns and close the significant gap between Trez Capital's current share price and the value of the underlying mortgage portfolio. This course of action provides shareholders with what is by far the highest total return outcome (20%+) of any alternative available to the Company. Any other outcome simply serves to further enrich the manager at the expense of shareholders. As such, we will be asking shareholders to vote on a formal wind-up as part of the requisitioned special meeting of shareholders." and they won:"On June 16, 2016, the Shareholders of the Company approved the orderly wind-up of the Company. The Company is currently in the final wind-down period. Its remaining activities involve solely the oversight of ongoing litigation and the maintenance of the corporation pending release and discharge of its liabilities. The Company intends to satisfy all of its liabilities, distribute all of its assets through one or more distributions to shareholders, and thereafter dissolve in accordance with the provisions of the Canada Business Corporations Act. The expected time frame to obtain the release or discharge of all liabilities, distribute its remaining assets to shareholders and to dissolve is expected to be approximately three to four years." |
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brad1
Full Member
Posts: 39
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Post by brad1 on Feb 18, 2020 22:13:00 GMT
I can see potential to get worse as HarbourEdge is gradually switching from a MIC to a real estate maintenance / development business. Typical "Bait and Switch" technique...
Most properties from HRAC portfolio don't need further development; there are valuable properties that stayed in portfolio for years and could have been sold many times at top market price, not fire-sale.
Why is HarbourEdge NOT selling the properties in the constantly booming Canadian real estate market, but instead increases the inventory / makes additional investments in real estate maintenance / development using our funds?
I know, the Q has been asked before, but it deserves another look, exposing the hidden agenda is key
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Post by forexloonie on Feb 19, 2020 0:07:26 GMT
Why is HarbourEdge NOT selling the properties in the constantly booming Canadian real estate market, but instead increases the inventory / makes additional investments in real estate maintenance / development using our funds? I don't think Larry wants to sell... |
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