FAQs

A promissory note, sometimes referred to as a note payable, is a legal instrument, in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms. It is important to understand that what we offer our investors is not a secured agreement and is not tied to any real estate. Our investors simply have a promissory note to bind Cornerstone to the investor and return capital under the terms provided in the promissory note.

Yes, taxes are one of the necessitates of life. There is no easy way of getting around having to pay taxes. The income you received as a result of investing with Cornerstone is taxed as passive income. The key to paying the least amount of tax is finding the person or company that has the lowest tax rate. When dealing with couples we recommend choosing the person in the lowest tax bracket for the choice of the name on the promissory note to pay the least amount of tax. You pay tax on the interest earned on the capital invested each year. We provide a T5 statement, prepared by our accountant for tax purposes. As always, it’s a good idea to run this over with your accountant to seek wise council on how to structure the investment. We are more than happy to deal with corporations as they often have lower tax rate.

Since this investment offers a calculated rate of return; reporting is very easy and predictable. At Cornerstone Multifamily, we recognize that reporting to our investors is crucial and very important for each person. Each client has an investor statement where the monies invested are tracked and recorded, this is always available to our investors upon request. We send this out annually to all investors at year end along with the T5 tax statement. Should you wish to see it mid-year please request it from info@cornerstonemultifamily.ca

Your investment is considered a passive income investment. This will put money in your pocket each month. The amount of capital you invest will be the amount of capital that is returned to you upon the completion of your investment. That is the beauty of this investment, your capital remains constant over the term of the investment. We commit to returning the exact same amount of capital you invest through the promissory note. The interest payments you receive from the capital invested is paid on a monthly basis. This investment is not considered a capital gain investment because you are not buying a share and seeing fluctuations in the value of the capital you invest with. There is a high level of security for the investor in the fact that thecapital you invest remains constant throughout the term of the investment.

Cornerstone Multifamily pays interest on a monthly basis at the end of each month. This makes this a simple interest investment because the interest is paid and not automatically reinvested. We have found that most people like receiving the interest payment on a regular basis. Investors have the choice to reinvest at any point ensuring it is a minimum of $1,000 reinvestment.

If Cornerstone Multifamily feels they have adequately evaluated and exhausted the Canadian multifamily landscape there are two options Cornerstone will move to evaluate. Firstly, moving to the United States to start evaluating the current market. Secondly, expand and evaluate the opportunity for commercial and storage facilities within Canada. The good news is there are plenty of great opportunities to invest in real estate. Cornerstone Multifamily spends a large portion of time evaluating Real Estate Investments across Canada while building connections with local Real Estate experts coast to coast.

Cornerstone Multifamily has an extensive team of people working together with them. Standard Operating Procedures are all put in place and things are very thoroughly recorded. Making sure every detail of our business is covered is a huge priority.

Simply put, you are required to sign this form to meet the requirements of the Securities Commission of Ontario in order to invest with us. This investment is classified as a risky investment because we can only offer you an unsecured investment through the form of a loan Agreement and promissory note. It simply informs you that you are accepting this risk and have an understanding of the risk associated with this investment. By carefully educating you on what you are investing in, we believe that this investment is actually extremely safe because of what and how we are investing your money. Cornerstone Multifamily invests money in mortgages that are secured by real estate that offer a very HIGH level of control with a very LOW level of risk to create a great return for their investors.