We are committed to bringing affordable, real, investments to the average Canadian investor. We are not currently offering investments to the public, but expect to do so by 2012.

We own and operate 8 properties with 32 doors in Winnipeg, MB, Canada. While we prepare for public investments, our Real Investors will be writing about their experiences with the properties to better prepare you for Real Estate Investing. Our goal is to educate in order to create confidence. We will provide you the tools necessary to properly evaluate any Real Estate Investments.

I urge you to subscribe to our RSS Feed or our email subscription form on the right so that you can keep up with the latest news, and educational material.

If you’re interested in the Return on Investment on a rental property in Canada, you’re not alone.  Many people are interested in the ’secret’ to analyzing a proforma, or a properties income statement.  Knowing how to do this effectively will probably be a key factor in your success or failure in the Real Estate market.  In my ‘What’s the ROI’ mini-series I will teach you the basics of making accurate, informed buying decisions.  Decisions that will be easily accepted when the bank does their own analysis on your viability when you apply for a mortgage (be it commercial or residential).  At the core of this analysis are the 3 pillars of income in the Real Estate rental investment market;  The series will be written in 4 parts, Analyzing Cashflow, Principal Reduction, Appreciation, and finally the ROI Calculation.

Analyzing Cashflow

I consider cashflow the most important pillar of income.  Many will argue with me on this point, indicating that most money is made in the Appreciation area.  While this may be true – it’s actually extremely hard for you to control, and predict.  Consider the markets in the US.  For decades people have been investing with the assumption that property values always increase, and never loses value.  Huge amounts of money were being made on this, lots of areas were averaging 10%+ a year. It was insane to expect that to go on forever.  Those who bought at the top, who were left holding the bag, paid the price for all that unfettered growth.

A lot of people have asked me the question: “How do I know when I’ve found a good deal?”

Usually they aren’t 100% sure they trust their Real Estate agent, or they aren’t using one.  In either situation, probably the best advice for most people would be to either get an agent, or a new agent.  That’s not who I am talking to today.  Today I’m speaking to the people who are genuinely interested in being more self reliant, and expanding their context.

The first rule: Information is Power.

I don’t think I have to back that up with any empirical evidence, no one will argue that point.  The real question is, what information?  And how do I gather it?  These are the questions that need to be answered.  In order to make good deals happen, you need to be confident in your position.  You need to know, better than your opposition what a particular property is worth to the market, the seller, and even the agents involved.

What information is needed?