That is a great question. We would categorize the options as active vs passive and residential vs commercial. If you are a hands-on person then you can buy an investment property (house, condo, plaza, etc.) and manage the purchase and tenants. You can buy the same properties with others, more experienced investors and let them handle some of the functions.
Another strategy is to participate in more sophisticated deals that require more capital and skills (value add, developments, etc.) as a silent partner. Those investors who are interested in making a return on their money using real estate and not necessarily owning real estate become private lenders (like the bank) – it is a profitable option.
This is an important question and needs to be answered by understanding your risk tolerance, investment horizon and short- vs long-term goals. We can then help putting a roadmap together and choosing a suitable strategy, and sometimes combining more than one. For example, one such strategy is a private loan for 1 year and another an investment in cashflowing property for a period of 5 to 7 years, or longer.
The risk involved in real estate investing is similar to any other investment risk. If the economy is troubled, there may be a price drop and increased vacancies. It takes longer to sell real estate assets than stocks, for example. To mitigate the risk, you want to make sure the strategy you are using is more stable and is in demand. We all know that people need a place to live in, it is a basic need, so the residential niche is more secure than owning a retail storefront, or an office building.
Understanding the average returns is a foundation of any investment. Since there are a variety of strategies, the return varies. In essence, you want to make sure you will make similar returns, preferably higher compared to an alternative investment.
You are more than welcome to ask our team for recent projects return samples.
Indeed why? There are so many realtors, mortgage brokers and investment advisors out there so what makes us unique? For starters, we constantly research the market conditions, we choose the investment strategies and niches that are trusted and verified.
We learned that working as a team creates much higher value than alone, thus we carefully select our partners to take on tasks which they excel in, and we personally invest in each deal we create.
As service providers, our Realty and Mortgage brokering team assesses the client’s situation and needs and works tirelessly to find a matching property and the most suitable mortgage.
The quick answer is yes and no. Yes, since you can be a mortgage lender using your registered funds in Canada. No, since you can not use registered funds as a source of down payment to buy a property.
In addition, there are deals that are structured in such a way that allows the use of registered funds toward equity.
Once you decide to invest as part of a larger equity pool, all investors are receiving quarterly or semi-annual reports with updates on the project performance and progress.
Real estate usually requires higher capital investments. In many cases an amount of $50,000 is a good starting point.
The real estate market is cyclical. Investors, both novice and savvy, must pay attention to the market conditions, the economic stability and growth, unemployment rate, and make investment decisions accordingly. That is what we do, regularly.
It is important to understand that market changes can make a good investment experience challenging due to higher vacancy, construction delays, etc., and an OK investment can turn to be a homerun. You want to choose an investment that will be well financed, will be in demand and even if the market corrects itself, giving it enough time to make a full recovery.
All profitable investments are subject to income tax. It is imperative to structure the deal in a way that will have the impact of the lowest tax rate. Your accountant has a key role in this area.
Now! It is never too early to start. Educate yourself and allow time to understand the industry, learn about the various strategies and niches.
If you are just starting and want to learn how to actively invest in real estate, pick up real estate investment books, the shelves are full of them and some have great insights.
The next step is to hire a Coach/Mentor to build an investment plan tailored for YOU.
If you are busy and prefer to invest passively, Book a Call with us and ask how we can help YOU.
I really like that precise, clear and professional attitude, both Michael and Rony have. I like the projects these guys are managing and definitely hope for more collaboration in the future. Keep up the good work!
I have invested a few times in Real Estate together with Michael. I can say with confidence that Michael has a vast knowledge in real estate, he is dedicated, passionate and very patient. He explains the market, the opportu-nity and the risks. I am in good hands when investing with Michael. High standard of professional know-how, integrity and strategic thinking are all part of his tool set. Highly recommended!
I’ve invested with Michael in several projects. I’m very impressed with Michael’s professionalism and knowledge in Real Estate Invest-ments. Looking forward for next project.
Michael has been great to work with. Very helpful and informative. Looking forward to participating in many more projects with CFP Group in the future!
I recommend Michael to anyone looking into investing in real estate. Prior to meeting him, all we knew about real estate investing was buy-to-rent, his knowledge and experience were eye opening, we are truly impressed with his approach.
Michael is friendly, professional and a warm person. He helped me with my first real estate investment all the steps of the way, making advice and answering all my questions. I have known Michael for more than 30 years and absolutely trust him. If you are looking to invest in real estate look no further.
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