Sparrow Invest Residential Fund
The Sparrow Invest Residential Fund is a diversified portfolio of alternative investments with a focus on private real estate and a mix of income-producing and development projects. The Fund is designed to generate a moderate level of income and long-term growth over a long period of time to provide investors with exponential returns.
Portfolio Details
Minimum Investment
$500
Redemption
2 Years
Distributed Yield
8%
Distribution Period
Quarterly
Investment Strategy %
No Data Found
How can Sparrow fit your portfolio?
The Sparrow Invest Residential Fund is designed for long-term investors seeking to diversify their portfolios with real estate. It offers exposure to various real estate types, regions, and manager expertise, providing a well-diversified solution. Sparrow Invest strategically invests in mortgages and rent-to-own properties, offering stable returns and reduced risk. This approach combines consistent income from interest payments with potential capital appreciation. By facilitating tenants’ path to homeownership, this strategy offers a reliable income stream and potential property value appreciation. These investments align with Sparrow Invest’s goal of providing sustainable and lucrative opportunities in the real estate market.
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Market Analysis
Average Home Price Index (HPI) over the last 10 years
No Data Found
* MLS Home Price Index which can be found on the MLS website
Is it the right time to Invest?
With a significant $103,500 increase in the national average house prices since January 2023, the Canadian real estate market is experiencing notable growth and presenting compelling investment opportunities. Coupled with a 6% increase in national monthly transactions, this upward trend signifies a favorable climate for investors. Sparrow Invest is poised to leverage this market upswing, allowing investors to potentially benefit from the rising prices and capitalize on the current market conditions.
Average National
Month-Over-Month
Average Home Sale
0.7%
Home Price Index (HPI)
1.1%
Newly Listed Properties
5.6%
* This data is collected from the CREA
How your money grows
Capital Appreciation
Investments have the potential to increase in value over time, allowing investors to benefit from capital appreciation as the investment's worth rises.
Dividend Payments
Depending on the type of investment, investors may receive regular dividends or interest payments, which contribute to the growth of their investment.
Reinvestment
Investors can further enhance their investment growth by reinvesting their dividends or interest earnings, leveraging the power of compounding to generate additional returns over time.
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FAQs
Our limited partnership (LP) engages in two main activities: lending to individuals seeking mortgages and purchasing properties for rental purposes. Rental properties generate dividends in the form of income, while the properties themselves generate equity. Additionally, the loan payments received contribute to increasing the overall value of the fund.
While the housing market can experience fluctuations, Sparrow Invest Residential Fund aims to mitigate risks through a diversified investment strategy. By investing in a combination of mortgages, rent-to-own properties, and bridge loans, the fund aims to provide a balanced portfolio that can withstand market volatility. While a downturn in the housing market may impact the overall performance, the fund’s diversified approach helps to minimize the potential impact on investments.
Sparrow Invest Residential Fund takes comprehensive measures to mitigate the risk associated with non-payment of mortgages. Before investing, the fund thoroughly evaluates the creditworthiness of borrowers and conducts diligent assessments of the underlying real estate assets. In the event of non-payment, the fund has mechanisms in place to pursue appropriate actions, including potential foreclosure processes, to protect the interests of investors. While there is a level of risk involved, the fund’s proactive approach and diversification strategy aim to minimize the impact of such scenarios on the overall performance and returns to investors.
At Sparrow Invest Residential Fund, we calculate your returns based on the performance of the fund’s investments. The returns are determined by factors such as rental income from properties, interest payments from mortgages, and the overall performance of the investments in the fund’s portfolio. These returns are typically distributed to investors on an annual basis while providing you with a transparent and regular assessment of your investment’s performance.