You have to look at their financials and the asset qualities they lend money on. Loan portfolio is here: http://www.ginkgomic.com/loanlist.aspx It appears they lend primarily 2nd mortgages on residential properties.
I like their FAQ here http://www.ginkgomic.com/faq.aspx
The question is how many mortgages will default or have defaulted ?
The second question is how many mortgages are in arrears ?
The third question is how to retract money, or with how much lead time.
Ask for some current 2Q 2013 and audited 2012 financials.
Since they charge 12-13% plus a fee of 2-3% usually, and pay you 9% on $10M invested there appears to be ample margin for them.
Be aware that income taxes are 40%+ on MICs (as it is deemed a passive investment) unless in RRSP or TFSA.
Thank You Thomas for your insightful questions that I should ask.
From their most recent brochure (as for July 31,2013), they have 2 delinquent loan out of 160. Average loan size is about $63,000 and the total L-T-V is 76% Would that be an acceptable portfolio? Thanks again.