It all started when one of AltaPacific's founders became frustrated with the performance of his mutual funds being managed by his financial planner.  Now, we're not here to be critical of financial planners... quite frankly many FPs will recommend MICs to their investors.  We might be a little critical of mutual funds though; as maybe you too have experienced less_than_impressive_returns. 

OK, back to the story... At the same time as poor mutual fund performance was being experienced, impressive returns through real estate transactions was occurring.  The frustration of the RSP mutual fund portfolio increased. The day finally came where the frustrations increased to the point of taking action... and a telephone call was made.

This was the phone call between three, of the now four, partners in AltaPacific Mortgage Investment Co. A three-way call was set up and the mutual fund frustrations were described, followed by a plea of "what can I do to get my RSPs into real estate?" A day later with some thinking and the course of action was clear, "We'll start a MIC."  The answer from one member of the three-way call, the frustrated investor, was a simple one, "What's a MIC?" He had never heard the term before.  As the "Mortgage Investment Corporation" was described, the inquisitive mind just kept asking questions.  With each answer to each question, the home for the poor performing RSP funds was becoming clear.  He wanted to invest his RSPs in to mortgages.

Let's talk about RSPs for a moment.  RSPs are one of few tax deductable solutions to your average working Canadian.  We're often taught after landing our first job that we should maximize our contribution to RSPs so that we can receive the taxable benefit on our annual tax return...great advice!  We're also told that these RSPs will be our "saving for our future and our retirement."  Also great advice!  It makes sense on both fronts and it makes even more sense to invest your RSPs in the best way possible. 

Well, the frustrated AltaPacific partner followed this advice after landing his first "real job" and he accumulated many years of RSP savings... at first he opened a TD Waterhouse account and thought he could "self direct" his investments.  This proved extremely challenging.  First off, he was always investing in stocks based on speculation and what he would hear from friends, family and co-workers.  Secondly, he found himself spending time he didn't have doing research and trying to learn what stocks to buy. After several years he came to the realization that he wasn't so good at buying and selling - or buying and holding - stocks.  One day he'd be up, the next day down... and after several years of ups and downs he was pretty much back to even.  With his frustrations in his own poor performance at a peak, called the financial advisor that he'd heard was experienced and trusted - a man that he knew, respected and that he knew had been in the investment business for many years.  He trusted him and he was ready to give him control of his RSP portfolio.  This is getting a long so lets cut back to the opening of this story.. it was simple, even after approx 6 years with this experienced FP, who placed his funds in a myriad of mutual funds, he wasn't impressed with the returns he was seeing.  He just knew that real estate investing was where he wanted to be and where he felt his best returns would come. He was already experiencing impressive returns with my non-RSP dollars and he wanted to transition his RSP investments into a real estate investment vehicle. 

In hindsight he could have just invested in an existing MIC but he's thankful that the third person on the three-way call that day encouraged him - encouraged them - to start a MIC themselves.  Now he has moved his RSPs completely into real estate and he can tell the story to other investors.  Lets face it; we work hard in our careers, we work harder to save our money... we all ultimately want to see solid returns on our money. 

The founders and partners in AltaPacific are serious about bring solid returns to all investors... and since they have invested their own dollars into the MIC, they're motivated to do just that.

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