Investment Strategies

Investment in Real Estate

When you first start investing in real estate, the process can be overwhelming. You must explore and consider different investment strategies, get a mortgage, choose a property management option and find the properties you want to invest in. At CFP Group, we provide a completely hands-free approach to investing. We are constantly monitoring the real estate market, finding properties that will provide investors with a stable and secure return on investment.

Buy and Hold Investing

For buy and hold investors, we will locate properties that attract quality tenants. Our experience means that we know exactly what to look for: a property with investment potential, in a great location. We will help you purchase the property, renovate it, find and manage tenants. Their rent will be used to pay off your mortgage and other costs, while property value appreciates. Buy and hold is a great strategy for beginners who are getting started in real estate investing.

An additional option would be legal duplex conversion, where we build a new, separate living space from within the home (most likely in the basement), allowing you to move in more tenants and generate even greater cashflow. For all duplex conversions, we work with architects, attain city permits, pass inspections and guide the investor through the legal duplex certification process.

Rent to Own Investing

Our “Untenant” Rent to Own program is designed to help people purchase a house, even if they have poor credit and lack the funds for a down payment. Sometimes, bad things happen to good people. We carefully review and select candidates for the program, then we purchase a house for them. These tenant-buyers rent the house from us for the duration of the program (typically, 2-3 years), then purchase the house from us once they have saved enough for a down payment and qualify for a mortgage from a bank.

The advantage of investing in the rent to own program is that you get long-term, quality tenants, who will eventually repurchase the house themselves. This means they will take good care of the property, as if it were their own.

US Real Estate Investing

Diversification is extremely important when investing in real estate – utilize different investment strategies and own properties in different locations. There’s extraordinary opportunities in United States real estate investing.

For years, we have been heavily invested in US properties and know the best local markets to invest in. We share our knowledge and expertise with investors who want to expand and diversify their portfolio.

On top of the traditional buy and hold strategy, one of the best places for your money is Airbnb. Airbnb’s tourism and short-term rental market in states like Texas, Arizona and Florida are exploding. By purchasing a house or residence for Airbnb clients, you can create a steady stream of cashflow while the property appreciates on the open market. This could be a very lucrative investment opportunity. We carefully select local partners in United States to provide Airbnb management services to our investors.

Equity Partnership

For investors interested in larger-scale projects, we will match them with the appropriate opportunity. This would usually be a new construction project where a company is established to manage such a project. Investors then become partners in this company, holding a share that matches to their total investment amount.

Investment in Mortgages

CFP Group is dedicated to matching our investors with the best opportunities possible. One of the most stable, safe, and lucrative ways to invest is in mortgages. Investing in mortgages is quickly becoming popular among smart and savvy real estate investors. Essentially, you can “be” the bank by lending your funds to others, those loans are then backed by real estate as collateral.

There are two ways you can invest in mortgages:

  • Directing Lending is when a person or a family owns a house or property and needs additional funds (for example, to renovate the property or to consolidate very high interest credit cards debt). The borrower is matched with an investor to take out a second mortgage, which is secured by the property. Typically, second mortgages are designed to be short-term loans and are open for repayment by the borrower at any time. Once the first mortgage provided by the bank is up for renewal, it is refinanced and the second mortgage is completely paid off.
  • Syndicated Financing is when more than one person pools their money together to invest in a mortgage on a larger project. A good example of such loan could be a new construction project where the builder needs fund for “soft costs” – marketing, sales, etc. Once the project is completed and newly built units are sold, the lenders are paid out.

One big advantage of investing in mortgages is that people can use their registered funds for lending. Like investing in mutual funds, stocks or GICs, holding mortgages in a registered portfolio is allowed by the Canadian Government. This means that investors can use registered pension or education plans as well as Tax Free Saving Accounts for that purpose – deferring the income tax payments.

How We Can Help

This is where CFP Group comes in. We are approached daily with numerous opportunities and match those to the needs and risk profile of our investors. We do our own due diligence and personally evaluate each opportunity before we present it to a client.

About Michael Kharlab

As an experienced mortgage specialist, Michael understands that getting a mortgage can be stressful and time consuming. The process can seem complex and overwhelming at times. But Michael works tirelessly so that his clients don’t have to, saving them money, energy and time. He researches the market and finds a mortgage financing arrangement fit for you.

Michael believes that strong relationships are foundational keys to success in both mortgage and real estate investing. Even after a mortgage closes, Michael keeps in touch with his clients to ensure they are updated on any developments or information they would need to move forward.

With a network of powerful lenders behind him, Michael’s advice and counsel carries the weight of experience and knowledge. At CFP Group, he utilizes every bit of experience and puts it to work for investors. Michael is an active investor in real estate and mortgages himself, he understands the needs of investors looking to grow and build their investment portfolio.

If you would like to learn more, you can find Michael here at www.borrowandinvest.ca