There's really no such thing as a fully secured, no-risk investment that guarantees a robust rates of return. But savvy investors know the best way to protect themselves is to keep risk as far out of the picture as possible.
With that in mind, take a moment to meet Doug Thiessen, one of the most risk-averse investors you'll ever run across. Thiessen is president of Taurean Global Properties of Canmore, a new company dedicated to the proposition that the syndicated purchase of revenue-producing rental properties can bring investors reliable quarterly cash flow combined with a steady rate of equity appreciation, all with an absolute minimum of risk.
Taurean Global may be a new kid on the block but Thiessen certainly isn't. He knows the real-estate game inside out.
As a former partner and chief operating officer of Prestigious Properties, Thiessen helped to build one of the most successful syndication teams in Western Canada.
|Taurean Global Properties believes Manhattan (below) and Florida are great places to invest in apartment buildings.|
"At Taurean Global, we invest in multi-family rental properties, with a particular focus on the U.S. Because of the continuing credit and mortgage crisis south of the border, we see enormous opportunities down there. It's a fantastic buyer's market," Thiessen says.
Taurean Global Partners is seeking to collaborate with ordinary investors in a limited partnership to take advantage of these once-in-a-lifetime opportunities.
"We are convinced the U.S. is facing an increasingly inflationary environment. For that matter, so are we here in Canada. Look at the price of gas or a loaf of bread," says Thiessen.
"We're convinced our business model is going to thrive in this environment. We are looking to buy multi-family properties that are charging lower rents than the prevailing market level. Then we will clean up and renovate these small to mid-size apartment buildings and bring the rents back in line with the market. Our business model tells us we can project returns of 15 to 20 per cent over a five-year period," he adds.
"Multi-family dwellings represent the sweetest spot of the risk-reward spectrum. We see this kind of investment as representing only a slightly higher risk than the purchase of a Triple-A corporate bond and a much lower risk than you'll find in the equities markets."
In short, Thiessen is inviting you to become a landlord while leaving all the hassles to him and his team.
Investors with a minimum of $10,000 join Taurean Global (the general partner) as limited partners in a syndicate, which purchases under-managed, under-valued properties in New York City, Houston, Dallas, urban Florida and Portland, Ore. in the U.S. and Montreal in Canada.
Taurean Global looks for choice but under-rated properties, in neighbourhoods where property values seem destined to rise within five years.
"We love these locations because of generally low prices," says Thiessen.
"And Manhattan is the largest apartment market in the States and the one with the highest demand. We'd be stupid not to at least look at it. But when you get down to it, Florida may be the best market of all," he adds.
Market studies have demonstrated that the North American rental market represents a long-term growth area, in strong and soft economies alike.
"In this market, people are losing their mortgages and being forced to leave their homes. Many have no option other than to rent," Thiessen points out.
Taurean Global expends enormous effort on due diligence, carefully and methodically identifying potential assets able to combine positive cash flow with equity growth.
Apartment or townhouse complexes full of renters tend to match this profile beautifully.
Why? Because the more rental units in the building, the greater the cash flow - even after the syndicate takes care of upfront costs such as taxes, mortgage payments and rental management fees.
"We clean, paint and renovate these properties. Then we feel justified in raising the rent. If necessary, we also bring in new on-site managers," continues Thiessen.
"We've seen cases where changing the building manager can translate to a 30-per-cent increase in revenues. It's all about adding value to your asset."
Investors who cast their lot with Thiessen and his team can look forward to a five-per-cent quarterly yield within six months of the purchase, plus additional distribution payments throughout the term of their investment, which is 100-per-cent RRSP friendly.
There also a number of important tax advantages inherent in the Taurean Global Properties business plan.
For details and an information package, please contact the company directly by telephone (toll-free 1.800.760.4909).
And feel free to visit the Taurean Global website (www.taureanglobal.com).