Frequently Asked QuestionsAll in one place
Who is eligible to invest?
Individuals must qualify as either an accredited investor, or be a family member, friend, or close business associate of the issuer in order to purchase securities under the exemption (the offering memorandum exemption) in subsection 2.9 (2.1) of National Instrument 45-106 Prospectus Exemptions (NI 45-106) in Alberta.
Who is an accredited investor?
You are automatically an “accredited investor” if you meet one of the following criteria:
1. Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in this calendar year.
2. Your net income before taxes combined with your spouse’s was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year.
3. Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities.
4. Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.)
How does it work?
In a simple joint venture, one partner is the “working partner” who provides the expertise and time (does all the work), and the other is the “money partner” who provides the down payment and mortgage qualification. There are many other ways to structure it. Both partners profit from the deal.
How do I get my money back?
In a typical joint venture partnership, initial investment capital is returned through cash flow, and the rest is returned at re-finance or sale. After all investor’s money has been returned, then the remaining profit is split between all owners.
How many properties do you own?
We own two rental houses on our own, and four with joint venture partners. Properties are single-family homes, half-dulpexes, and a house with an in-law suite and garage suite. We are currently building a 6-plex.
Where are your properties?
Our properties are located in Edmonton, Leduc, and Spruce Grove, but now we are only focusing on buying in Edmonton.
We only buy in economically strong areas, where jobs are growing and people are moving to. Edmonton currently is the top place to invest in Alberta due to its diverse economy and consistently increasing population. The market is currently in a slow recovery phase, making it an opportune time to buy at a lower price before the market fully recovers. We like Alberta for its affordability, no land transfer tax, no provincial sales tax, no vacancy tax, no foreign-investor tax, no rent control, and friendly landlord-tenant laws.
Why invest in multi-family buildings?
Commercial multi-family real estate is now our focus due our ability to get financing ourselves (no personal guarantee required from partners), economies of scale, and multiple profit centers: cash flow, mortgage pay-down (paid for by tenants), forced appreciation, market appreciation, and tax-saving benefits.
Is this what you do full-time?
Patrick and Zorya are both Professional Materials Engineers (P.Eng.). Patrick works full time as an engineer, and Zorya is currently a non-practicing engineer, working full time as a real estate investor.
Are you property managers?
No. We have property managers on our team who help us take care of our residents. We manage the property managers.
Are you realtors?
Still have questions?
Good! You should. We’d be happy to talk to you.
Every investor has unique goals and expectations. Through a conversation, we like to find out what those are for you, and see how we can best help you reach your dreams.
The Alberta Real Estate Association (AREA) produces monthly reports on the Alberta real estate market.
CMHC provides up-to-date Canadian rental housing data from the neighbourhood level to national scale