FAQ

Generally the people who like to invest with us are people that have decent sized savings, and want to receive income from it. This usually means they are at least in their 40's and beyond. 

We don’t discriminate against anyone wanting to partner with us. As long as you have money and our visions align we will partner with anyone, individuals or corporations.

I do not specialize in macro-economics and do not focus on what is going on in the global economy for the most part. The interesting thing about real estate is that it is local. Let me give you an example:

An average house in Vancouver may be listed for $1,000,000. For us living in Fort Frances, that is hard to believe because our average home price is under $200,000. And even in cities, different areas of the city have different values based on political, social and economic conditions.

This is great because that means there are different strategies for each area on how to successfully protect your money, and find ways to profit from investing. In short you can make money, whether you live in an Bull or Bear market, Boom or Bust economy.

For us this is a short summary:

1. Look for properties.
2. Analyze properties.
3. Walk properties, and make offers on them.
4. Once accepted, we enter the due diligence phase (about 2 month period) where we make sure we want the deal, secure bank financing and fully fund the investment, order a building inspection, get the building insured.
5. We manage the property, collect rents and do necessary maintenance to keep the building in good condition and renovations to increase value.
6. Get money back out of investment through liquidation ( sale ) or a re-finance from the bank at the new higher value.
7. Market for new deals ( Repeating steps 1-6 )

1 month for residential.

2 months for commercial.

It comes down to NOI, Net Operating Income. This is the gross rents you take in, less the expenses paid out for taxes, insurance, maintanence, etc.

Once you know the NOI, and know where you need the NOI to be, it’s a simple matter of finding ways to achieve that goal.

Real estate is a VERY simple business. It can be hard, but it is very simple.

Yes, everything affects the market. Real estate is no exception. The BIGGEST affect on real estate values for what we do, is rent rates. For right now rent rates seem very higher in relation to the property values which means, great for cashflow. As soon as people start buying investment properties, there will be more demand, which means higher prices for the same income, and the cap rates will lower, which will mean increasing rent rates will have more affect on increasing the price.

Also, cheaper money ( lower interest rates ), makes properties more affordable for people to buy, so this has an affect on increasing values in the market place, it also means more profitable for investing because the cost of borrowing money from the bank is less expensive, and therefore more cashflow. An increase in the interest rate will have the opposite affect. However, if interest rates increase, and house prices come down, it also means less people can afford to buy houses, which means more people will potentially rent and it will increase rent rates from demand.

It is all connected! You just need to be in tune with the local market, national interest rates, and have a basic grasp of logic.

As of right now, our investors have our personal phone numbers and emails and have the ability to phone or text us. To date, there hasn’t been much day to day dialogue, and if it became overwhelming we would probably change the method of contact, but as of right now our communication is always open with our partners.

We will also try to do regular ( semi-annual/quarterly ) updates in the form of PDF’s, and upload them to our website so people who invest with us have access to developments on our specific projects.

Finally, we interact with our investors by sending them a cheque every month from the proceeds of their investments. And because their investments are local, they can drive by the properties and take pride in seeing their money being used to better the community.

You will be meeting with me ( Wade ) personally, and as long as you are 100% honest with me in regards to your financial situation, we can find your best plan to achieve financial freedom.

Absolutely we can! We love talking real estate, and specifically how real estate can make your financially free. It is 100% possible, but it does take time and work. Nothing is free in this life, but it is worth it. While others labour hard at a job that they hate for 40+ years in hopes to retire, we can sit down and find out what you require to retire within 5 to 10 years, and sooner if you are super motivated.

For $1,000 I can sit down with you, analyze your financial situation and offer you guidance on how to reach your goals in realistic but much faster than average time period.

For $10,000 I will make sure to help you on that path to financial freedom through active investing. If you have the money, you can be a passive investor and you will benefit from partnering up in our deals.

This is not a GET RICH QUICK SCHEME, this is a GET RICH FOR SURE SCHEME, financial freedom and wealth creation is a choice, just like anything else. I hope to destroy the myth that wealth comes from luck or chance. It involves luck, but you can learn to create your own luck, and put yourself in the game in order to be the beneficiary of lucky circumstances.

As a rule, I would say that until you have $100,000 of capital, you aren’t ready to make major moves in real estate investing. If you assume a 10% rate of return in passive income that would equate to $833.33 per month. Maybe that is enough to cover your rent / housing cost every month but that’s about it.

That being said, I would still suggest investing $30,000 - $100,000 with us if you have that available and are okay to lock it in for 5-10 years. Our goal would be to AT MINIMUM, double your money within 10 years.

The best use of your money in the beginning is to invest in yourself. That’s what I did for a few years while I was investing in real estate. Buy books, grab an audible.com subscription, read all you can on real estate investing. We offer a $10,000 hands on training program, where I will personally coach you for one year, or until you buy your first property!

This is an investment that will pay you back every year for the rest of your life. Imagine owning an asset that makes you $10,000 more wealthier EVERY YEAR, and you now have the skill to buy assets like this whenever you want, because you spent your hard earned money and time learning the skill to do what most people don’t do. If you have more TIME than MONEY, then I suggest starting here, and you can get started by filling an application HERE ( link ) and we will set up an appointment to figure out your life.

If you want to invest, what it will come down to is two things:

#1.  Time horizon ( how long you are willing to keep your money in the property )

#2. Your level of risk tolerance

Some investments make secure money from day 1, but there are very little value-added opportunities. Other investments have a huge potential upside in increasing income and property value, but maybe do not produce much income on day one, and it takes renovation capital to get to that point. We will be up-front and honest with you about the details of every investment before we ask for a commitment.

The competitive advantage is partnering with a company that has been doing this for over 8 years, and has a proven track record at increasing net worth and cashflow year after year. We buy properties with great prejudice, and look at and analyze lots of deals, make lots of offers and get most of them rejected before we acquire our properties.

This means that when we are in a deal, we made money on day 1 by getting value from the deal. We might buy a property for less than it’s worth based on income. Or we might know how to greatly increase income within the first few months, which increases the value. We might buy a property that has a strategic advantage to the overall portfolio. Either way, we are VERY methodical in what we buy.

Fort Frances specifically is currently a cashflow market. This means that based on the value of the property, investors can get very high return on investment in the form of cashflow. Rents are currently so high relative to their prices that, after all expenses are paid and the mortgage is covered, there is a lot of money left over in the form of cashflow for the investor to transfer into their own personal bank for living expenses or for re-investment.

Of course that may change in the near future, but for right now the strategic advantage  in Fort Frances is the great cashflow opportunities.

The downside to cashflow properties, is that increasing the income to an investment property, will not have the same affect on increasing the value of the property in the market, as much as a market like Toronto with lower cap rates.

For instance: with an average cap rate of 12%, for every $100 you increase rent in a unit, you increase the value $10,000 ( 100x ). In a market like Toronto where cap rates are 6%, the same increase of $100 would increase the value by $20,000 ( 200x ), because investors are willing to buy properties in Toronto for a much lower rate of return than in a smaller market like Fort Frances.

If you decide you want to be an active investor, this question will need to be resolved in order to grow your portfolio. You may have the money to buy the first few properties, but eventually you will run out of money and will need the raise capital, and go for bank financing.

Ways to finance a property are only limited to your creativity. There are a number of sources of financing you can pursue such as:

- Banks

- Credit unions

- JV partners ( joint venture )

- Friends / family

- Personal Lines of Credit / Credit Cards ( for down-payments )

- Seller financing

- Hard Money Lenders

- Equity in your house

- Retirement accounts ( TFSA, RRSP )

Bottom line is this: If you have a great deal under contract, then you will have no problem finding the money.

This depends on the investment, and how you want to structure your involvement with us. But in most cases you would receive your first cheque the next month, and receive one every month after from that point. Again, it all depends on preference, and the nature or our specific investment. But we buy properties that CASHFLOW, meaning money comes out of the property from rental collection, which means your get paid right away.

The benefit of real estate is that it IS ill-liquid. You want your money to work for you and earn you passive income, rather than being available but not producing profits for you.

Typically with our investments we will require your to lock in your money with us for 5 to 10 years. If you are unable to make that type of commitment, we would suggest not investing passively with us. We may have some projects that require money for a shorter time period than that, but that is on a case to case basis.

In short, it is not the same as putting money in the bank. You won’t be able to come back the next day and ask for it back. You need to be committed to the project 100%, because we will, and only want to partner with people that have the same vision as us.

Real estate is a very forgiving asset, as long as you buy the investments right. Although we cannot legally ensure that your principle be returned, here are some things to note:

- We have never ( to date ) lost money in a real estate deal

- My mother has money invested in our deals

- We have a bigger commitment than you do in our deals, you have your principle at risk, but we have

our capital + the mortgage liability in our name.

- We have never not returned money to borrowers/co-investors in the past

- Our reputation is worth more than your money, our investors get taken care of first

- We have loyalty to those who believe in us with their hard earned money

- We are in this for the long term, we are committed to growing this company, if we partner with you, we operate under the assumption of a long term business relationship, it is not transactional to us.

I will give one example of how in the past we we able to stay true to the values listed above:

I partnered with someone in a deal 50 / 50. The investment didn’t turn out the way we expected, so we sold it for decent profit. During the sale, in winter, the furnace quit, and pipes froze and there was water damage. It was my fault for not managing the property better so I ate 100% of the cost out of my proceeds, allowing my partner to get his capital back with a reasonable profit for short term investment. I still got my money back, but most of my profit was wiped out. This is our commitment level to our partners.

If you invest passively, you are at risk of losing all the money you put into the deal. However, this has never happened yet, and I can’t imagine it ever will. Real estate is VERY forgiving to mistakes and market downsides. There are multiple ways to make money in real estate and recoup losses. Our properties are insured, so if there is physical damage to property we have a way to be compensated.

Also, because our property cashflows, your money will come back to you in the form of monthly cheques through cashflow. For instance at 10% per annum, you will receive your money back in just 10 years. This means that EVEN if for whatever reason, the investment goes to $0, you will have it all back from profits from the operation of the investment over time.

Because the property is always in the company’s name, you will not have the mortgage in your name and will not be liable if the bank were to come after us. You benefit from the leverage of having bank financing without the risk.

It does IF you have title to that property. We currently do not have a structure in place for investing with us that we can pass on that benefit. However, if you choose to buy your own property, then yes, you benefit in a few ways with taxes.

#1. You now run a business, in a way. Which means you can start writing off more stuff in your personal life linked to your real estate ( all expenses with your property, office, food, fuel for vehicle ).

#2. Your real estate can be written down over time through depreciation ( an annual paper loss ).

Here’s how it works:

If you buy a property for $100,000 you can write off 4% of the remaining value every year, with the exception of the first year which you can only write off half of that ( 2% ) . So in year one you can write off $2,000. The next year you can write off almost $4,000. If you make $300 / month in profit, you can write off 100% of your profit! …legally!

Absolutely not!....if you are investing PASSIVELY with us. That is the beauty of investing with a company that is doing the work. You receive the returns, in the mail from us, but have none of the hassles of dealing with the three T’s ( toilets, termites and tenants ). 

That is built into the profit structure. We are compensated for managing the deal, so you can can enjoy the passivity of real estate, which is why people ultimately want to get involved with it in the first place!

Absolutely not. Most real estate investors do not have a real estate licence ( I do not ), and most real estate brokers don’t invest in real estate. It’s weird that more real estate brokers don’t, but it’s the reality. A licence gives you’re the ability to work as a broker and list properties on the MLS, but has nothing to do with real estate investing.