The following article is from Canadian Real Estate Wealth Magazine: Despite the long list of potential hazards, the possible rewards of being a landlord often outweigh the downsides. Here are the top 10 reasons why you should become a landlord. 1.) You use tenants’ money to pay your mortgage and build your equity. You can […]
Archive | Investment Strategy
Five Ways to Make Money
Occasionally I speak at events and people ask me about real estate investing or making money in general. There are really only 5 ways to make money .. and you can do all 5 in time .. but you have to take them all seriously, especially step one ! 1) You work This is the […]
Real Estate Investing: Impact on ROI using different leverage
Real estate investing is like a three course meal (TM). It has three profit centers: cash-flow (or the appetizer), mortgage paydown (the main course) and equity appreciation through asset improvements and inflationary rental upside (the dessert). One key question in real estate investing is: how much cash to put down and how much leverage to […]
Are hotel condos a great investment (compared to rental pooled condos) ?
I started my real estate investment career in rental pooled condos, buying four; two of which I still own to this day. Around the same time in the mid- to late 90’s I also started looking into hotel condo projects, which on paper can offer higher cash-flow. I stayed at the 1 King West hotel […]
Real Estate Investments: what we have learned in 12+ years buying over $1/6B
What have we learned since 2000 in our real estate investments: We have done really really well since our inception in the year 2000 to grow to around 600 investors and an asset base approaching $90M (we actually were over $100M before we sold assets in various secondary markets in 2011 and 2012). But, we […]
Risks of fixed mortgage investments
Lately, we’ve seen firms advertise high interest rates again .. using such terms as “guaranteed”, “mortgage backed”, “secured by real estate” or “preferred rate of return” or similar misleading words. We do understand the desire for monthly income, especially by older folks or retirees ! The financial industry is full of clever marketing people, many […]
Rental properties are solid investments as overall real estate market cools
Why houses/condos may fall in value but apartment buildings do not. There is a common misperception that all real estate classes are created equal. House prices are falling in some cities in Canada, primarily because the rules to get mortgages have changed, such as increased debt-coverage ratios, higher down payments and shorter amortization. This allowed […]
Our Investment Strategy
The general investment strategy is to locate under-managed, under-valued (and sometimes ugly) properties in growth areas of promising cities (“class C or class B building in a class B area”). This property will be acquired, impeccably managed, appropriately renovated and financed from the start or re-financed after approximately 9 to 15 months. The rents will […]
Lots of planning and work boils down to a 4-step process
Prestigious Properties’ general investment strategy starts with locating under-managed, under-valued properties in growth areas of promising cities within emerging markets of North America, and then managing these properties to their full potential for the benefit of all investors. Macro-Location: Markets with Declining Vacancies and Rent Growth – sometimes even CAP rate (ration between asset’s cash […]