Investing in Mortgage Funds: A 5-Step Guide

For those looking to earn extra via passive income, investing in a pooled mortgage fund may be already on your radar. For those who are still on the fence on whether or not to invest in a mortgage fund, we’ve put together a 5-step guide to help you determine if a mortgage investment fund is right for you.

Step 1: Do your due diligence

A good starting point for doing due diligence is understanding your risk profile. Investing is a personal decision so the definition of a good investment will vary from person to person.

Assessing your propensity for risk will help you determine which types of investments suit you best.

Once you’ve established your risk appetite look into the fund manager to find out about their track record. Read testimonials and make sure they are operating under an Australian Financial Services Licence.

For more tips on how to do your due diligence when looking to invest in mortgage funds, be sure to read our other article on the What To Consider Before Investing in Private Mortgages.

Step 2: Submitting an application form

Once you’ve done your due diligence, the next step is to decide how much you want to invest and which entity you want to invest through.

At APG, should you choose to decide to invest in our pooled mortgage fund, you may choose to invest either as an individual, joint-individual, via a Trust, your SMSF, or through a company of your choice.

Again, your decision will boil down to individual circumstances. There is no formula for what is the best way. The only question that matters is which option is best for you.

Once you’re clear with your decision, you may now submit your application.

Step 3: Onboarding

Once you’ve submitted your application, you’ll need to make sure you have the required documents ready for the onboarding process.

For those investing as an individual or individuals, you’ll need certified copies of two forms of ID.
For those investing with a Trust or a Superfund you will need additional documents such as:

• Certified copies of two forms of ID from all Directors/Trustees
• Certified Trust Deed
• Certified Bank Statement addressed to the Trust/Superfund

For those investing through a company, you will need the certified copies of two forms of IDs from all the Directors.
APG’s Investor Relations will be assisting you during the onboarding to make the process as smooth and simple as possible.

Step 4: Transferring funds

Once all the documents have been verified, the next step is the fund transfer. At APG, our Investor relations team makes a mandatory security call to verify bank details. This is to ensure that there are no errors in any of the details and that your money will be deposited exactly where it should.

Once the transfer is completed, your application is processed and you will receive a confirmation of investment. You will start earning interest from this day.

Step 5: Sit back and relax

Now that you’re invested, all that’s left at this stage is to sit back and relax and wait for your distributions. This means you’ll be earning extra income without adding additional working hours on your part. This is the reason why pooled mortgage funds are called true passive investments where your money works harder for you and not the other way around.

For those who wish to compound the interest earned, APG provides this option under the Distribution Reinvestment Plan (DRP). This is suitable for investors with longer-term financial plans. To learn more about compounding interest and the DRP, be sure to check out our article “Building Wealth with Compounding Interest”.

About APG’s Pooled Mortgage Fund

APG’s pooled mortgage fund is used to finance a variety of small business and property development loans. It’s managed by a team of experienced mortgage managers who conduct extensive due diligence on each of the borrowers and all loans are secured by Australian real estate.

One of the main benefits of a pooled mortgage fund is that it is a true, set-and-forget investment unlike other passive income options like investment properties where the owner of the property will still need to engage in some form of work like managing the property and sourcing out tenants. At APG we’re active, so you can be passive.

The pooled mortgage fund is open to all investors and provides passive income via quarterly distributions. To learn more about the fund or the Distribution Reinvestment Plan, you may book a call to speak to our Investor Relations team and they will gladly answer any question you may have.

This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances. The returns mentioned are not guaranteed. You risk losing some or all of your investment. If you have any questions about investing in private mortgages then please send us an email [email protected] or message us via our Contact Page.

If you have any questions about investing in private mortgages then please send us a message via our Contact Page.