Gentai Overview

Gentai Capital Corporation (GCC, formerly known as Genesis Capital Corporation), based in Greater Vancouver, British Columbia, and licensed by British Columbia Financial Services Authority (BCFSA), is a Mortgage Broker in the business of originating, funding, and servicing mortgage investments.

The Office of the Registrar of Mortgage Brokers at the Financial Institutions Commission regulates the mortgage brokering and lending activities of Mortgage Investment Corporations (MICs) under the Mortgage Brokers Act. The Registrar and the Mortgage Brokers Act do not regulate the capital raising and investment marketing activities of MICs which are subject to securities legislation and regulation.

Gentai capital provides customized construction, equity, and conventional real estate finance to the builders, developers, and real estate owners marketplace in British Columbia, Alberta, and Ontario. In addition, we provide loan servicing, asset management, and other related alternative investment services to meet our investors’ needs.

Genesis Mortgage Investment Corp (GMIC) is a leading non-bank mortgage lender that lends in major urban centres where stability and liquidity of real estate are strong. GMIC, structured as a Mortgage Investment Corporation (MIC), is managed by GCC. We focus on loans that cannot be placed with large financial institutions but fit into our underwriting guidelines to fill the lending gap caused by the limited number of financial institutions operating in Canada. We provide creative customized mortgage solutions for term, bridge, and construction financing solution to owners and builders of all types of residential, multi-residential and commercial real property in Canada, subject to compliance with our investment policy. Our strategy is to expand in a controlled manner by diversifying geographically and focusing on real estate sectors with the lowest risk.

The Company intends to sell Preferred Shares primarily through Gentai Asset Management Corporation (“Gentai”), an exempt market dealer registered in British Columbia, Alberta, and Ontario. The Company may also sell Preferred Shares through sub-agents contracted through Gentai and other registered dealers.

“Our investment objectives are capital preservation and strong cash flow with quarterly dividend distribution.”

Mission, Vision, Core Values

To establish a well-acknowledged brand and become a valued member of the community we serve, to deliver integrated and customized investment and lending services to our valued clients, to create a working culture full of passion, inspiration, and opportunities for the employees whom we share a commitment to our values, to achieve long-term, sustainable returns, and superior investment performance.

Services

We deliver financial services to our valued clients with highest industry ethical standard.

People

We attract, develop, and retain the best industry workforce and promote personal development.

Management

We subscribe to the highest level of professionalism, confidentiality, integrity and transparency in delivery of services.

Investment Strategy

Sound custom-made mortgage lending is not purely based upon a convenient financial model or scoring template. It is based upon the availability of safe mortgages and a common-sense approach to lending. Successful lending involves an intensive, hands-on process which is essential to avoid losses. Capital preservation is always paramount.

We adhere to conservative lending parameters.

1

Due Diligence

Thorough due diligence and credit assessments is the foundation of our lending
2

Low LTV

Margin of safety with Loan-to-value ratios of approximately 65% at the time of underwriting
3

Short Term

Investing in short-term mortgages (6 to 12) to mitigate interest rate and market risks
4

Diversification

Pool of balanced mortgage diversified by size, borrower, and geography and property type in order to limit exposure to any one area
5

Syndication

Reducing exposure by syndication with other financial institutions on large loans
6

Exit Strategy

Clear exit strategy required when underwriting each loan
7

Monitoring

Systematically monitoring the borrowers and the properties until the mortgage is fully repaid / Applying Strong default management policies

Gentai Mortgages

Providing custom-tailored mortgages to the borrowers to meet their financing needs: innovative structures and attractive rates

We provide primarily first and second mortgages and bridge financing to borrowers seeking to purchase, refinance, refurbish, or develop real estate. We are flexible and quick in response to quality borrowers’ needs for mortgages where typical larger financial institutions do not offer competitive terms and structures. Typical loans are for bridge financing, infill construction with interest rates of 8% to 10% per annum, one year term and interest-only payments. Our in-house team handles all aspects of these transactions quickly and efficiently. We lend in British Columbia, Alberta, and Ontario currently.

Each mortgage is subject to our thorough analysis:

  • Borrowers financial background
  • Property values and credit assessments
  • Exit plans
  • Overall market conditions

Gentai Investors

Offering investors a secure source of income from a diversified pool of fully secured mortgages: rigorous risk control and reliable strong income

Our objective is to provide investors with stable, safe, and reliable returns and to preserve capital. First, and foremost, Disciplined Investing Principal Philosophy rules – Preservation of Shareholders’ Capital We look for safe mortgages and avoid all aspects of risk in the loan. From a return perspective, we commit to generating a strong absolute income stream. Last, we are determined to focus on consist and predictable income, quarter-to-quarter and year-to-year.

Through conservative underwriting and creative structures, we provide mortgages to borrowers whose financing needs are not being met by larger financial institutions. GCC pools together a diversified portfolio of fully-secured mortgages that provide ready liquidity to investors.

We have consistently followed a simple and proven investment approach which has produced excellent returns for our investors over 7 years and 6 months.

Our Business

Over the past 7 years and a half, we have invested over $448 million in 372 real estate mortgages and have consistently earned strong absolute cash yields to investors.

As a mortgage lender, GMIC is positioned to occupy the gap caused by the limited number of financial institutions operating in Canada. We lend in major urban centres where the stability and liquidity of real estate are at the highest levels. We focus on loans that cannot be placed with financial institutions but represent an acceptable underwriting risk. The weighted average loan-to-value ratio of our mortgage portfolio, as a whole, at the time of underwriting each loan in our portfolio, may not exceed 65%. A typical loan in our portfolio has an interest rate of 8% to 10% per annum, a loan-to-value ratio of 65%, a one year term, and monthly interest-only mortgage payments. Our lending parameters are as follows:

First or second mortgages on income-producing real estate up to a maximum of 65% of appraised value.
Mortgages on residential and commercial properties up to a maximum of 65% of appraised value.
Loans on single-family residences up to 65% of appraised value.
Construction loans up to a maximum of 75% of the cost.
Mortgage loan amounts are generally $100,000 to a maximum of $8 million. The largest single mortgage in our mortgage portfolio as of March 31 2020 was $10.70 million.

The parameters listed above are our maximum mortgage lending parameters. On March 31, 2020, the weighted average loan-to-value ratio of the mortgage portfolio was 53.10%.

By offering this specialized boutique service, we have been able to satisfy the full range of our borrowers’ mortgage requirements, from the sophisticated real estate investors to the equity loan required by the first time home buyers.

We have a proven track record of performance. Over the last seven years and a half, our mortgage origination volume is summarized as follows:

The current overall real estate mortgage portfolio exceeds $143 million.

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