Our Investment Strategy We target markets that exhibit strong economic fundamentals and deliver economic performance metrics that are above the provincial and national level. Once such a market is identified, we locate undervalued/under performing properties that have the potential to generate significant positive cash flow. Each property goes through a rigorous screening process, including a financial screener model that determines the financial attractiveness of the investment. Once the property is acquired, we perform targeted repairs/upgrades (if feasible) and improve the overall management of the property. This has proven to increase both the cash flow and market value of the property. Our investors benefit from the monthly cash flow generated and also from the increased value of the property. Time Horizon Our time horizon for holding our various property acquisitions is 5-10 years. However, we offer exit strategies that allow our investors to cash out their investments within a shorter time frame. Exit Strategy To maximize investor returns in both the short-term and long term, we employ various exit strategies. Below are the main exit strategies we use. Each one is carefully considered with the investor’s profits and time horizon as our main objective. We also research current market conditions to determine which particular exit strategy is most viable. 1. Refinance 2. Outright Sale of the Property 3. Condo Conversion Risk Management We manage both market and property specific risks in many ways. Market Risk a) Only invest in areas that have strong economic fundamentals that are currently stronger than the provincial and national level. b) Focus on properties that generate monthly/quarterly and yearly positive cash flow so that we can generate immediate returns for our investors. c) Acquire properties at prices below market or appraised/assessed value. This provides an immediate cushion against short-term market declines and fluctuations. Property/Financial Risk a) Only acquire properties with positive cash flow with the aim to significantly increase cash flow over time. b) Establish a reserve fund for vacancies, repairs/renovations and any other unexpected items on a monthly basis. c) Acquire buildings that are solid in structure and only required limited repairs. d) Sign Quality Tenants to long-term leases (1 year+). e) Strictly control the day-to-day management of properties with the aim to maximize rents and control expenses.
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