It's an axiom in the business world. At least 70 per cent of wealthy North Americans made most of their bundle by investing in real estate.
And now ordinary Canadians are learning how to sample their own piece of the real estate pie, by joining forces with an outstanding investment team that enables them to share in the syndicated purchase of carefully selected commercial properties which offer reliable quarterly cash flow, significant tax advantages and equity appreciation, combined with a low element of risk.
Interested? It's time to talk to the knowledgeable professionals at REDEV Properties, home of the Real Estate Income Gain (REIG) program.
"Our philosophy is simple: investment security and cash flow take top priority," explains Howard Manley, senior vice president of REDEV Properties.
|REDEV locations include Argyll Road in Edmonton, above, and Ranchlands in Calgary, below.|
"When I got into this business, I asked myself: 'Would I put my own money into a program such as this and what are the safeguards I would need to attract me to participate?' " To answer those questions, REDEV places its investors' capital into a lawyer's trust account, hires bonded and licensed commercial property managers to look after day to day operations of REDEV properties and leaves it to a third-party trustee to distribute quarterly returns to investors.
"In general, we purchase our properties with a view to hold them for five years, although we have sold properties sooner than that, depending on the wishes of our investors," says Manley. "Generally, though, at the end of a five-year mortgage term, we either re-finance or sell. Every member of our syndicate enjoys the right to vote on that decision."
While nobody in the investment community is able to offer iron-clad guarantees, REDEV Properties does enable you to participate in the ownership of a revenue-producing commercial property that's close to bulletproof.
At the moment, Manley is particularly bullish on his next project, a thriving shopping centre situated at the corner of 71st Street and Argyll Road in Edmonton.
"This is an extremely high-traffic section of the city. The plaza sits on more than three acres and features three buildings which total more than 27,000 square feet in area," Manley says.
"This is a strong net operating income (NOI) property with a history of cash flow. It features excellent access and a strong roster of reliable tenants, including Boston Pizza, Arby's, CitiFinancial Canada, Napa Auto Parts, a denture clinic and a liquor store," adds the senior VP.
Here's how it works. Once a purchase has been negotiated, the REDEV operations team conducts an intensive study of strategies for enhancing the already strong revenues generated by the Argyll Road shopping centre.
But long before the company reaches that stage, its expert analysts have invested a substantial amount of energy in the due diligence process, thoroughly investigating such market factors as:
* Income levels and employment growth trends in the relevant market;
* Suitability of location;
* Household growth and net migration of the relevant market's population;
* Supply/demand ratio, competitive analysis, sub-market occupancy and rent levels;
* Potential barriers to entry that would limit competition;
* Purchase prices and yields of available existing stabilized communities, if any;
* The location's proximity to public amenities;
* Quality of the existing infrastructure, including roof and mechanical; and
* Proximity to nearby office complexes, shopping centres, and transit.
"We take this process extremely seriously, examining every issue as carefully as possible," adds Manley.
Now in its seventh year of operation, REDEV has purchased 25 commercial properties, all of which continue to generate reliable streams of cash flow.
Although the company is based in Toronto, Manley works out of an office in Calgary and he oversees most purchases and national marketing efforts from his base in Western Canada's business hub.
A seasoned pro who practically grew up in the real estate game, Manley also spent many years as a franchise owner for the popular Nevada Bob's retail golf stores. As he says, he's worked on both sides of the real estate street, both as tenant and landlord.
Manley and REDEV pride themselves on what they refer to as their six investment goals. These include investor safety, ease of management, frequency of reporting to investors, growth potential, income production and tax advantages.
Hundreds of satisfied REDEV investors have enjoyed moving their money into a safe, inflation-proof real estate investment which generates income, even as they sit back and watch the value of their equity position appreciate over time.
For additional information, please stop by the REDEV website www.redevgroup.com, and call the following toll-free number: 1.866.668.7344.
Calgary residents can call this local number: 403.212.1953.