WHY SHOULD I INVEST IN REAL ESTATE?
Real Estate is a desirable asset because it holds its value over time. People will always need a home to live in. And land is a finite resource - they're not making any more of it. Owning quality real estate allows Educated Investors to make strong risk-adjusted returns while also creating quality housing stock for people to live in.
WHAT KINDS OF RETURNS ARE POSSIBLE?
We strive for 15-18% annualized returns on investment. Sometimes, our returns exceed this benchmark, depending on the project and the economy. We like to under promise and overdeliver.
How long must i commit my money for?
Deal lengths vary, but are usually between two and five years in duration. The longer money is left in a project, the harder it can work and the higher the return. Real estate investing is a long game. It takes time to buy, rezone, and develop land.
Some projects pay dividends along the way, others see all profits and return of capital reserved until the end of the project. Each opportunity has different.
Some projects pay dividends along the way, others see all profits and return of capital reserved until the end of the project. Each opportunity has different.
HAVE YOU EVER HAD A PROJECT FAIL AND LOSE MONEY FOR INVESTORS?
No. But that's not to say it can't happen. Any investment not covered by CDIC insurance ($100,000 or less invested at any CDIC-registered financial institution) risks loss of principal. But risk and opportunity go hand in hand together. They are two sides of the same coin. Higher returns are only possible when risk - which we interpret as managed uncertainty - is present.
Our goal is to carefully assess the risks of real estate opportunities and to only invest in projects where the odds of success are discernibly in our favour. Things don't always go as planned. When obstacles arise, we pivot. Old assumptions are jettisoned, new data is collected, and projects are reimagined.
Our goal is to carefully assess the risks of real estate opportunities and to only invest in projects where the odds of success are discernibly in our favour. Things don't always go as planned. When obstacles arise, we pivot. Old assumptions are jettisoned, new data is collected, and projects are reimagined.
Do you accept registered money (RRSP, TFSA, RIF) for investing?
Not at the moment. Managing registered money is expensive and lowers returns. We have been successful raising unregistered cash to fund our developments to date, so registered money hasn't been needed to meet our capital needs. But if a large enough development opportunity with a big enough ROI were to come our way, we would reconsider this policy.
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