Investing

Why Invest

Do you have a sum of cash sitting in your saving account? If this is the case, you aren’t making the 1% or 2% your savings account is telling you. Infact, due to inflation, you are loosing money. Savy investors understand the power of money when invested with care. There are many ways to invest – index funds, stocks, RRSP’s and more. What sets real estate investing apart is the ability to provide secure and palpable investments.

Refined Real Estate Inc. provides investors the opportunity to secure investments against an asset you can see, touch and feel. Their investment can appreciate by two methods – natural and forced appreciaition. Natural appreciation is an increase in the value of a property due to market changes. Forced appreciaiton is increasing the property value by correcting structrual deficiencies, updating cosmetics and increasing net operating income to name a few.

Ben - Calgary, Alberta

“I started private lending with Refined to earn more than I was with my traditional stocks (and reduce risk from market fluctuations). They explained the process clearly and answered any questions I had with an excellent understanding. Once that project finished, Ian and Janelle presented a JV opportunity to me it was an easy decision to invest and earn equity. The project was well secured, the financials were clearly communicated, the schedule was followed and the process well thought out. I’m happy to be a part of their team!”

Secured Private Lending

Secured lending is typically used for project specific investing when an investor supplies the bulk of project funds. For example, Refined Real Estate may seek $150,000 to purchase and rehab a property with the intention of flipping it. The investor would supply $150,000 for 8 months. The initial investment plus a pre-set interest rate would be paid as a balloon payment once maturity date is reached. The investment would be secured against the property and all documentation would be prepared by a professional.

Un-Secured Private Lending

Unsecured lending, as the term indicates, is not secured against a property. However, that does not mean your investment is not protected. Terms and conditions are still outlined with proper documentation. This type of investment is best used for smaller projects. For example, Refined may seek $25,000 to complete a renovation project. Similarly to secured lending, both parties would come to an agreement on terms (interest rate, timeline, conditions.

Joint Venture Partnrships

Buy and hold projects provide secure investment opportunities for investors to joint venture (JV) with Refined Real Estate Inc. What sets Refined Real Estate Inc. apart is our ability to acquire underperforming properties in strong markets. We typically buy properties that appraise higher than purchase price, ensuring equity is built in from day 1.

We analyze our deals to determine highest and best use, which typically requires renovations and unit turn over to obtain fair market rent or greater. This strategy creates forced appreciation and allows for less uncontrollable market variables.

Our ability to find deals is a result of the numerous systems we have built and are constantly perfecting which generate leads specific to our strict buying criteria.

Our typical JV structure involves Refined Real Estate Inc. acting as the working partner. Our role includes finding underperforming deals, renovation management and any other day to day activities associated with running the project. The Investor acts as the financial partner. As indicated, they are responsible for funding the project including acquisition, down payment, closing, holding and renovations costs.

For example, we may JV to purchase an 8-unit apartment building for $750,000. The building appraised for $825,000 – creating $75,000 in equity from the start. The investor funds $150,000 for down payment and legal, $25,000 in acquisition fees and $125,000 in renovations costs.

Another example would be: Refined Real Estate JV’s to purchase a 20-unit apartment building for $1,500,000. The building appraised for $1,800,000 – creating $300,000 in equity from the start. The investor funds $375,000 for down payment and legal, $50,000 in acquisition fees and $350,000 in renovations costs.

In each of these examples, Refined Real Estate Inc. provides the deal, manages the renovation and guides the refinance process to recoup a portion of capital invested. Capital recapture ensures a competitive ROI and significant equity increase is realized though forced appreciation.

Learn more about your investing options today.

Schedule a call with Ian or Janelle at your convenience.