Canadian Private Lenders’ Podcast

Ep.145 | The Hands-off Investment That Pays 9% a Year

Neal Andreino and Ryan MacNeil Episode 145

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0:00 | 34:04

Part two of the MIC series shifts from structure to strategy. Ryan and Neal make the case for why mortgage investment corporations have become one of the most compelling income investments for Canadians who have already won the real estate game and are looking for somewhere to put the proceeds.

They break down where MICs sit in the investment spectrum (between government bonds and equities), who is actually investing in them (it skews heavily toward boomers and recently exited real estate investors), and why the 9.2% average returns in 2024 and 7.7% in 2025 are pulling in institutional capital alongside individual investors.

They also go deep on the risks most people overthink: redemption gates, borrower default rates (around 2-3% in alternative lending), and what actually causes a MIC to blow up. Not every failure means investors lose money. Defaults are not the same as losses, and a fund that gates redemptions may be doing exactly what it should be doing.

Neal runs through the questions every investor should ask before putting money into a MIC: average loan to value, property types, first versus second mortgages, portfolio diversification, how loans are sourced, historical default experience, and how experienced the management team actually is. Plus one red flag worth knowing: a MIC chasing rapid growth is almost certainly lowering its underwriting standards to get there.



Show Chapters:

2:00 Today: The Investment Side of MICs

2:38 Where MICs Fit in the Investment Spectrum

5:11 The Compounding Math Nobody Talks About

6:32 GICs, Bonds, and Equities vs a MIC

10:02 Why Investors Love Monthly Income

13:09 Volatility Is Driving Investors Out of Equities

13:42 Who Actually Invests in MICs

14:19 9.2% Returns in 2024, 7.7% in 2025

15:36 Understanding the Real Risks

18:39 Redemption Gates Aren't a Red Flag

19:23 When MICs Have Failed or Struggled

21:20 Not All MICs Are Equal: What to Evaluate

24:57 Defaults Are Not the Same as Losses

28:16 Is a MIC Right for You?

30:00 Red Flag: Beware of Rapid Growth

Resources:
Keystone Capital Group
CPLP Instagram: @cplpodcast
Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn: Neal Andreino

Find Ryan on:
LinkedIn: Ryan MacNeil
E-mail: ryan@keycap.ca