WHY INVEST IN REAL ESTATE?
Historically, Canadian real estate has been an excellent long-term investment. Over the past 10 years, the low interest rate and rising real estate market have made investing in Canada even more attractive. When done strategically, real estate investing can help you reach financial independence more quickly, and with greater ease, than almost any other investment – as it’s been doing for decades. Solid returns and a regular monthly income are just some of the benefits real estate investments offer.
Without the right information or partner, many investors simply place their money in a Real Estate Investment Trust (REIT).
The problem with this approach is that there is only one way to increase your return on investment (ROI).
As experienced, Direct Real Estate Investors (DREI), Palm Tree Investments uses five different factors to increase the ROI on our investments.
These are the factors we take into account when determining each investment:
The increasing value of a property based on natural market forces and property condition over time. This includes things like:
Supply and demand – Economy, demographics and, Gov’t influence.
Location – Not just provinces or cities, but neighbourhoods.
Zoning – Residential, commercial, downtown core etc.
Planning – Municipal and provincial
The increasing value of a property through renovation, refurbishment or another investor activity. This results in:
Increased revenue – Rent, storage, signage, additional rooms or apartments (renovations).
Decreased expenses – Hydro, hot water, gas and heat.
Highest and Best Use (H&B Use)
Decreasing a mortgage balance which increases equity.
The balance of rental revenue after all expenses are paid. This affects a number of things:
The monthly payout of your investment and the fund for future maintenance
The monthly or quarterly distributions.
Your ability to re-finance and capture tax free equity
Cash flow is also directly affected by interest rates
Using various financial instruments or borrowed capital to increase the potential return of an investment:
We look to control 100% of the asset with only 20% capital invested.
WE HAVE ONE GOAL – INCREASE EQUITY!
The key to our approach is a number of things, and the first is purchasing in cities that are growing economically and have improving demographics, which, results in natural appreciation. We are strict with the cities we choose, and many simply don’t have the requirements needed for our investments.
We are experts at what we do, and we understand our markets. By investing in under-performing and under-valued properties, we can increase the value of the property by forced appreciation. By doing things such as renovations and ensuring low tenant turnover, and regular rent increases, we maximize cash flow.
Once the property is stable with good cash flow and mortgage paydown, we refinance it to take the increased equity out, and then hold the asset in the portfolio. This, generates income and improves equity until the property is sold – which is typically 5 years and sometimes longer.
Our hands-on approach ensures that our properties are renovated and rented in a timely manner with a commitment to meet or exceed the expectations of our stakeholders and tenants.
What are Joint Ventures?
Everywhere you turn, there are successful individuals who want to get into real estate. These people are bankers, lawyers, business owners, doctors and corporate executives – and they all want the safe, high-yield returns that real estate investments can provide.
There’s just one problem. The majority of them don’t have the time, expertise or even the interest to do it on their own. These are savvy professionals who recognize that while real estate is one of the best investments on the market, it’s also one of the most complicated.
They (just like you) want the return – WITHOUT the effort.
Joining forces with Palm Tree Investments is a smart way for busy people to build a profitable real estate portfolio, without the concerns of day-to-day management, tenant issues or renovations. You receive all the financial benefits of direct investing without the hassle or the effort.
Advantages of Joint Ventures
Professional experts working for you
Starting a joint venture with Palm Tree Investments allows you to benefit from the work of specialized experts. This means you can relax knowing your investment is being managed right. Our team will locate the right property, analyze the best and highest use, renovate, re-finance and rent it – leaving your busy life uninterrupted.
Better investment opportunities
Partnering with Palm Tree Investments means you get a chance to invest in ground level real estate opportunities. We thoroughly vet every project we bring to you to ensure it’s the right deal with a solid plan.
You are more likely to succeed
Try to imagine the process of real estate investing on your own: finding the right property, trying to manage contractors, getting permits, setting up viewings, choosing the right tenant, dealing with tenant issues – and all during your free time. While no investment is 100% guaranteed, our success rate is very high. We are experts at this process and have the network and experience to manage every aspect of your investment.
You are not alone
Palm Tree Investments uses a proven strategic method to generate increased equity on all our properties and share in the upside and downside of each project on a 50-50 basis.