“More money has been made in real estate than in all industrial investments combined”
A Proven System
We have strict investment criteria when it comes to purchasing investment properties with our partners. When we bring on new partners, in most cases we will not have an immediate investment opportunity as the best property investments are not available every day. Once we determine a fit with a partner, it usually takes several weeks to find the right property to invest in. Our philosophy is we would never invest our partners’ money into any investment that we would not feel comfortable investing our own money into. In addition to this, we are never paid from an investment until our investor partners are paid out first.
We have developed four simple, yet clear purchase criteria in selecting each property for purchase. Through this, our typical returns are 12%-25% for our joint venture partners.
We target properties in Hamilton, Barrie, and Cambridge. These cities are ranked the top 3 investment cities in Ontario by REIN (The Real Estate Investment Network). Each of these cities is slated for long term growth for the foreseeable future. Although we target these cities, we are open to opportunities in other areas that support similar cash flow and growth potential.
Positive Cash Flow
We only purchase properties after a thorough financial analysis has taken place. Through our due diligence performed on each opportunity we will only invest in properties that deliver a strong positive cash flow month over month. we look at the cash flow of a property to at least match (or exceed) typical returns that are expected with stocks and mutual funds, leaving the other growth engines of real estate (appreciation, leverage, equity, tax advantages, etc) to be the “icing on the cake”.
Discounted Purchase Price
We target properties that we could add value to upon purchase. This means that typically the properties we purchase require some renovations to modernize, and/or allow us to create a new income stream by adding another unit. When renovations are performed, typically this forces the appreciation on a property, allowing us as investors to potentially have returns prior to any tenants moving in.
Great Neighbourhoods + Above average living conditions = Great Tenants: By choosing good neighbourhoods with access to amenities, and providing a high quality product, we attract quality tenants with strong credit to live in our homes. It is our policy to always screen prospective tenants by performing a background and credit check prior to offering the property for rent.