Lend Money to Make Money

There are many ways to lend money to make money.  Publicly traded and private MICs like Timbercreek Mortgage Investment Corporation or Fisgard lend money as mortgage loans, secured by real estate.  Timbercreek mortgages are secured by residential (including multi-residential), office, retail and industrial real property across Canada.  There is no arguing that the yields are steady (7.38% now):

Funds like Fisgard MIC invest in residential mortgages and yield less (5.0%).

Timbercreek MIC stock trades on the TSE and you can hold it in registered account to shelter the distributions from taxes.  If you hold it in an online discount broker like Questrade you would have no account fees for RESP, TFSA, or RRSP accounts, so that 7.38% stays in your pocket.

In contrast, the Fisgard MIC must be held in one of their accounts - an RRSP account costs $100 per year while an RESP account costs $24 per year - a TFSA account is only $36 per year.  With $5000 in an RRSP account, that fee eats up 2%, or 40% of the current 5% earnings - ouch!  Obviously, these fit best with larger investment amounts - the RESP fee is more reasonable (only 0.96% of a $2500 investment).

More exotic funds that lend money include the Sprott Private Credit Trust.  The trust has some unique features such as having tax sheltered distributions.  Unlike the MICs, loans are secured through senior liens on collateral assets.  The trust is offered on a private placement basis to investors who meet certain eligibility or minimum purchase amount requirements.