Apr 6

The Benefits of Buying Commercial Real Estate

Written by: Richard Crenian

There are many reasons to buy and invest in commercial property in Canada, below lists five available options.

1. Free Rent

While many pure investments might not provide the option, others will find owning commercial real estate helps facilitate their other goals. Multi-family and mixed use properties might provide free living spaces as other units cover the expenses.

Canadian business owners can find owning their premises far better for their organizations that renting. With interest rates so low, mortgage payments on retail and office buildings could be less than rent.

Multi-tenant properties can even provide additional revenues. Equity appreciation often proves to build business assets better than main lines of business.

2. Owning Prime Property

Perhaps you don’t need additional income or space now, but would like to build great wealth in the future, or build a property in a specific spot in the future. Commercial retail shopping plazas, offices and even infill lots can be on prime property. Prime property which will go up significantly in value and can be sold or built on later.

3. Be a Part of the Community

Even young investors, who aren’t planning to settle down anytime soon can find commercial real estate a very rewarding investment. It’s a great way to not only be a concrete part of the community, but also to have a say in the direction it goes. Will it become greener, trendier, more innovative, stay affordable or provide better services to locals? You get to influence that when you own commercial properties.

4. Wealth Preservation

Wealthy and experienced individuals and investors have consistently chosen real estate to protect what they have, in particular commercial real estate. In addition to simply providing concrete asset protection, direct investment in commercial property offers diversification and defense from inflation.

5. Passive Income

Whether you’ve already have one foot in retirement or just beginning to invest, passive income can bring more flexibility and choices to your lifestyle.

Summary

There are many benefits to buying commercial property in Canada. Between historically low interest rates and the expectation of rising asset prices, investors will find they are able to realize the most of these advantages by getting in now, versus later.

Posted in Commercial Real Estate, real estate investment, Richard Crenian
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Apr 6

Income Producing Investments

Written by: Richard Crenian

What are the best types of income producing investments available to Canadian investors?

Saving vs. Streaming

Those desiring to be financially independent need access to cash to support themselves without having to trade time for money. So regardless of age, income producing investment can prove invaluable.

If we look at the wealthiest individuals around the world today, the vast majority of them on the 2015 Forbes list of richest billionaires turned income streams into piles of money. Not the other way around.

It is very hard to create a sufficient nest egg to retire or become truly wealthy by saving alone. Even those earning six figures per year can find it very challenging to stash enough of their pay to provide for an on-time retirement, let alone an early one.

Income investments change the dynamics. They allow for early retirement while helping to increase net worth at the same time.

Maintaining a Nest Egg

While having billions in the bank might be great, everyone still needs an income. Millions and billions can be spent very rapidly. Investing in income-producing assets can preserve wealth, while providing plenty of income for living expenses.

Income Investing

Buying a business, stocks and publicly traded REITs are all forms of investments with income potential. However, given current conditions and future forecasts, direct investments in income producing real estate might stand out head and shoulders above the other prospects.

How many billionaires and even millionaires can you name that own no real estate?

There’s a reason for that. Even those that didn’t make the bulk of their wealth from real estate investments hold a lot of their wealth in real estate today. Real estate helps provide a shelter for capital and throws off regular cash flow from rents. Properties can even build wealth simultaneously as values rise and by making valuable improvements.

Conclusion

No amount of tight budgeting, coupon cutting and Groupon deals are going to help most get to be where they want financially. Even those that have accumulated large sums of wealth need to preserve it and derive income from it without depleting it.

Posted in Canadian Economy, Commercial Real Estate, Richard Crenian
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Apr 6

Financing Investment Properties in 2015

Written by: Richard Crenian

Leverage continues to be one of the most powerful tools available to sophisticated global investors, as well as local Canadian real estate investors, offering many advantages including tax breaks, lower risk and maximum growth.

Traditional Bank Purchase Mortgages

The Financial Post notes Canadian banks and high street mortgage companies continue to aggressively compete in order to make loans to individuals, even in the hottest markets, while interest rates are still low. These lenders want to put their money to work and they are pulling out all the stops to make it happen. Those that have great relationships with their own banks might find they can borrow more than they anticipated with great terms. Don’t be shy about negotiating an even better deal and if you aren’t getting any love from the bank you currently use the most, talk to smaller local bank managers and see what they are willing to do if you switch your business to them.

Refinance Existing Properties

Often Canadian property investors might find they can borrow more money faster and with better terms by refinancing what they already own. This makes the current market an incredible time to restructure financing on existing homes and investment property portfolios, as interest rates are so low and are poised to increase in the future.

Real estate values are up in many other areas throughout the country, so many may be able to access and leverage their equity in order to expand their portfolios in 2015.

Bridge Loans

Those that don’t really want to hamper existing properties with new long term debt or don’t want to miss current opportunities, but are still liquidating other holdings can use bridge loans. These loans can be used to make acquisitions and improvements to new investment properties.

Commercial Mortgage Lenders

Dedicated commercial real estate lenders offer a variety of loan options. Since they specialize in commercial property, these lenders may be able to offer better deals on portfolio loans, multifamily apartments, retail and office buildings. They generally offer purchase, refinance, mini-perm and construction loans.

Private Mortgage Lending

Many wealthy individuals are now interested in loaning their capital to real estate investors. They can’t find the returns elsewhere, but may prefer debt investing to equity. These loans can provide an easy process and appetizing rates.

Partnerships

Partnerships offer an excellent way to find leverage alongside other like-minded Canadian investors. In many ways this can provide safety, higher yields and more diversification than investing alone and trying to self-manage investments.

Summary

There are many options for financing Canadian investment properties in 2015. The current low rates and competition between lenders is providing even better deals for investors. Now is a great time to scale and diversify. Just look around for the leverage solution which best checks all the boxes you are looking for and prosper.

Posted in Canadian Economy, Commercial Real Estate, real estate investment, Richard Crenian
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Apr 2

ReDev Properties Ltd. and their President Richard Crenian announces sale of Castleridge II

Written by: Richard Crenian

Toronto – Richard Crenian, President of ReDev Properties Ltd. is pleased to announce the sale of Castleridge II, a commercial shopping plaza located at 55 & 33 Castleridge Boulevard, Calgary AB, shadow-anchored by Safeway Grocery.

Purchased in 2006, Castleridge II is in a prime location that receives excellent exposure from the Calgary International Airport and access to Castleridge Boulevard. With 8,022 square feet of rentable space, Castleridge II is anchored by TD Bank Group, the plaza’s first tenant, which occupies approximately 69 percent of the rentable space.

ReDev Properties Ltd. was engaged as the asset manager for the property. Their president, Richard Crenian says “We’re sad to see this asset go. It’s been a wonderful property, allowing us to build a strong and long-term relationship with TD Bank. This plaza will be irreplaceable, but a really motivated purchaser offered the asking price. In the end, we are excited to be able to offer our investors such fair returns.”

The shopping centre made headlines when it first opened, as the first shopping centre in Calgary to offer a drive-through banking service with the TD Bank. It has now been bought by Avenue Commercial.

Castleridge II will be the 9th successful property project ReDev Properties Ltd and Richard Crenian has owned, operated and sold. It will also be the second property the group has sold in 2015.

 

About ReDev Properties Ltd.

ReDev Properties Ltd. is a Canadian owned and operated commercial real estate asset management company. Since 2001, ReDev Properties has purchased and managed over 25 commercial real estate properties in Canada on behalf of our investors.

ReDev Properties understands that the key to any successful commercial real estate project is location. ReDev Properties carefully and diligently locates existing commercial real estate properties in markets which provide the necessary stability and future growth to ensure our assets retain and increase their value. Western Canada, specifically Alberta and Saskatchewan, are the economic engines of the country and ReDev has placed a high priority on properties located in these provinces.

ReDev Properties utilizes a long term approach to managing our investors’ assets. It generally takes considerable time and expertise to maximize the value of a commercial real estate property. ReDev has the requisite experience and knowledge to capitalize on the lucrative commercial real estate market and maximize the value of our assets.

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For more information on ReDev Properties Ltd please contact:

Richard Crenian, President
rcrenian@gmail.com
416-225-5700

Posted in Commercial Real Estate, Richard Crenian
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Apr 2

ReDev Properties Ltd. announces sale of Leduc Town Square

Written by: Richard Crenian

Toronto – ReDev Properties Ltd. is pleased to announce the sale of Leduc Town Square, a commercial shopping centre located at 6108-50 Street, Leduc, Alberta.

Purchased in 2006, Leduc Town Square  is located in a prime location, along the Queen Elizabeth II Highway into Edmonton. Offering 51,393 square feet of rentable space, Leduc hosts a diverse mix of tenants including anchor tenants such as Shoppers Drug Mart, Giant Tiger, Cora Restaurant and Sobey’s Western Cellar Inc. This centre is shadow-anchored by a Safeway grocery store.

ReDev Properties Ltd. was engaged as the asset manager for the property. “We are exceptionally pleased with the outcome of the sale and being able to yield a respectable return to our investors,” says ReDev Properties Ltd. President, Richard Crenian. “Leduc Town Square has several large and attractable tenants, which helped draw in strong cash flow.”

Leduc Town Square is the eighth successful property project ReDev Properties Ltd. has owned, operated and sold.

 

About ReDev Properties Ltd.

ReDev Properties Ltd. is a Canadian owned and operated commercial real estate asset management company. Since 2001, ReDev Properties has purchased and managed over 25 commercial real estate properties in Canada on behalf of our investors.

ReDev Properties understands that the key to any successful commercial real estate project is location. ReDev Properties carefully and diligently locates existing commercial real estate properties in markets which provide the necessary stability and future growth to ensure our assets retain and increase their value. Western Canada, specifically Alberta and Saskatchewan, are the economic engines of the country and ReDev has placed a high priority on properties located in these provinces.

ReDev Properties utilizes a long term approach to managing our investors’ assets. It generally takes considerable time and expertise to maximize the value of a commercial real estate property. ReDev has the requisite experience and knowledge to capitalize on the lucrative commercial real estate market and maximize the value of our assets.

 

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For more information on ReDev Properties Ltd please contact:

Richard Crenian, President
rcrenian@gmail.com
416-225-5700

Posted in Commercial Real Estate, Richard Crenian
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Mar 30

Why Investors Prefer Commercial Property Investments

Written by: Richard Crenian

Real estate is the one investment that every investor around the globe is agreeing on right now. However, there is a distinct difference between what investors are investing in. Many are trending toward small partnership structures and are looking to popular international cities and secondary markets.

Beginners often launch into real estate investing with residential single family homes or condos. The more accredited investors often choose commercial investments such as retail, multifamily, office and retail.

There are four primary reasons experienced investor chooses commercial property.

1. Liability

Dealing with residential homes and condos comes with additional quirks. This applies no matter where you are investing in the world. Besides homeowner and condo associations and their rules, there are many regulations which pose liability for residential landlords. There are many protections for residential tenants, with some areas often siding with the renter over the landlord. Commercial landlords and lenders avoid these pitfalls and regulations.

2. Scale

It’s normally easier to scale investments in commercial property. Rather than investing alone in one property at a time, commercial investors enjoy more leverage. They can leverage better financing terms and partnerships to get involved in multiple investment opportunities. Also this allows them to participate in larger projects, which can be more profitable and carry less risk.

3. Diversification

Commercial properties can offer more manageable and profitable diversification. Seasoned property investors know that diversification is critical to long-term portfolio performance and consistent cash flow. Trying to stay on top of single family homes or condos spread across the country, internationally, or even your local city can be tough. It can be expensive and time consuming. Multi-tenant commercial real estate also builds in extra diversification to each property invested in.

4. Ease of Management

There are single family property management companies and real estate agents that provide it as a side business. However, residential property management is can poor, with plenty of horror stories and it can be costly.

Commercial real estate is virtually always professionally managed and more efficient to manage, providing freedom and confidence.

Posted in Canadian Economy, Commercial Real Estate, real estate investment, Richard Crenian
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Mar 30

Canadian Commercial Real Estate Warming Up in 2015

Written by: Richard Crenian

A gathering of Canada’s largest retailers at the recent CIBC retail conference concluded current trends are actually benefiting Canadian business. CIBC analyst Perry Caicco even believed “the outlook for 2015 is more positive for retailers than it has been for a couple of years.” If that’s the case, then commercial real estate could be breaking new records when it comes to delivering returns.

The conference highlighted the fact that lower gas prices are “putting more money into the pockets of consumers,” and that “the economy is faring well.” According to The Toronto Star newspaper, Target’s exited from the Canada removes a potentially strong competitor, and is creating a better environment for Canadian businesses.

However, this doesn’t mean that US firms aren’t benefiting from Canadian business and retail either. The entry of US based technology companies is helping the office sector, creating jobs and adding more money to the economy. Facebook and other tech firms are working on improving the backend of The Internet of Things and its security. This provides a strong framework for Canadian firms on the frontline to put to work in homes and businesses. In contrast to previous fears, we continue to see that the more connected we are, the more efficient and profitable businesses will become, especially retailers.

As our homes and devices become more connected, shopping may become more automated and streamlined. This is actually making retailers more profitable, as small storefronts at shopping plazas can do far more business resulting in increasing revenues, which is great news for their landlords and retail investors.

What’s good for Canadian retail is in turn good for Canada’s other commercial real estate sectors. When Canadian business is strong, office buildings are in higher demand. When these sectors are doing well multifamily apartments are fed by more workers and the capacity for renters to pay more for units. In the current environment this could even help prop up Canada’s industrial as a despite oil price softness.

The outlook for Canadian commercial property investment is still bright ahead. Some may even be surprised at how some investments and sectors outperform expectations over the next several quarters.

Posted in Canadian Economy, Commercial Real Estate, real estate investment, Richard Crenian
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Mar 30

Commercial Property Investment Provides Perfect Balance for Canada’s Digital Nomads

Written by: Richard Crenian

Canadians are becoming more mobile and nomadic than they have been in generations. Sound commercial property investments at home are emerging as the best financial tool available to help them maintain balance in their finances and lifestyle goals.

Canada appears to deliver more annual sun seekers to top US destinations than any other country. Each year, thousands venture south in search of warmer weather and often stay for many months. The economic roller coaster Canada has been on for the last few years has driven masses to hop between the nation’s provinces in search of jobs, better pay, superior lifestyles and more affordable housing. On top of this are the millennials, who are passionate about travel, aren’t ready to settle down and are empowered to stay mobile due to new technology. Even generation X is embracing this new digital nomad lifestyle.

So how are commercial real estate investments helping?

Brick and mortar investments provide essential balance, as they can deliver the perfect contrast for retirees that are holding portfolios heavily weighted in the stock market or younger generations that are taking a gamble on tech investments, new careers and startup life.

Real estate offers concrete security and diversification for when other ventures fall flat and underperform, as it can provide both passive income and passive wealth appreciation. Monthly or quarterly cash flow payouts can provide steady income to live, while growing equity can help build a nest egg for retirement or to pass on as an inheritance.

Commercial property investments are normally designed to be far easier to manage than other types of real estate too. With professional property management in place, Canadians can travel with confidence and never have to worry about checking on tenants or knocking on doors to collect rent.

Aside from the direct monetary benefits of investing in commercial property in Canada, individuals can find these types of investments help them stay anchored and supporting their home country, even if they rarely step foot back here.

Posted in Alberta Vs., Canadian Economy, Commercial Real Estate, Investing Alberta, Richard Crenian
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Mar 11

The Pros & Cons of Emotions in Canadian Real Estate Investing

Written by: Richard Crenian

Warren Buffett often leans on one of his favourite quotes from ‘The Intelligent Investor’ which says that “investing is best when it is most businesslike.” So does this mean emotions are always bad when it comes to making investments in real estate?

Emotional investing can be calamitous. However, once you dig into it, emotions may have some positives when investing too.

Emotionally Charged Investment Decisions

Emotions tend to influence people to act less rationally. This would appear to be at odds with making sound, logical, investment decisions. We see it when home buyers keep on stretching beyond their means to bid on homes as they get caught up in the excitement and competition. We even see it when Canadian real estate investors fall in love with the concept marketing and branding of a pre-construction condo or luxury rental homes, and then vastly over pay, or can’t bring themselves to exit a failing investment when they should.

The reverse is what keeps many investors from making the better, more common sense investment decisions in less fancy property, which may actually be far more profitable.

Fear is one of the strongest emotions. It is also one of the most dangerous for an investor. Fear has been manufactured and managed many times to create substantial sell-offs at discounts when investors should have held. We’ve seen this in the stock market, oil, tech world, and real estate markets, and it looks as though that cycle may soon start again, if people fall for it.

When Emotional Investing Can Be Good

While some would argue that emotional investing can never be good, there are some factors which refute that.

For example, you could say emotional panicked sell-offs of an asset can create an amazing opportunity for those with the bullishness and courage to go against the market or act from a high level of wisdom. If no one invested emotionally then green and eco-friendly building never would have caught on.

Finding Balance

It is wise to be objective when choosing investments and predetermined timeline for selling and holding investments. However, this may follow an investor first emotionally by selecting a country, region or city to invest in, and the type of investment they are most interested in. It is then crucial to put personal bias aside and choose expert third party management that can execute and objectively manage real estate investments daily in order to maximize portfolio performance.

Posted in Canadian Economy, Commercial Real Estate, real estate investment, Richard Crenian
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Mar 11

Investment Insights from Forbes 2015 Billionaires List

Written by: Richard Crenian

Forbes has released its new 2015 list of world billionaires, which details how the world’s wealthiest investors are doing this year and the valuable insights for individual Canadian investors desiring to follow in a similar path.

The Economy is Just Fine

While some enjoy debating the health of the national and global economy, the data from the new 2015 Forbes Billionaires list shows that the economy is operating fine for those that are willing to make it work for them.

Together the members of the list have seen their net worth grow close to one trillion dollars over the last year and nearly 300 new individuals achieved billionaire status this year as well.

Age is Not One of the Numbers to Dwell on

With 46 billionaires on the list under 40 years old, as well as aging veterans like Warren Buffett, age should not be considered a barrier for Canadians looking to increase their personal wealth. Age may be a motivating factor in demanding more from an investment portfolio or an added advantage for those getting started early and benefiting from compounding returns. It is clear from the list that age is not something that any Canadian investor should allow to hold them back.

The Power of Partnerships

It is incredible to see the vast majority of billionaires on the 2015 Forbes list are self-made, along with it are also two key takeaways Canadian investors shouldn’t overlook.

The first is the power of partnerships. Pick any name on the list and it is hard to see how they could have made it without others. Everyone on the list had help in creating, maintaining and growing their fortunes. This applies to Uber, Facebook, Berkshire Hathaway, Amazon, Alibaba and all of the other companies these billionaires have developed into modern day success stories. It also applies to the individual partnerships that investors have formed to invest together.

While it is great to see so many self-made billionaires, it may also be shocking to see that very few billionaires attained their wealth from inheritances. If so few heirs have managed to grow their inherited wealth, Canadian investors should give serious thought to how they will instill good financial principles amongst the next generation, as well as selecting secure investments that can be professionally managed on behalf of heirs.

Passive Income

From the multi-billion dollar valuations of tech companies to the personal investments of these billionaires, the one consistent theme is passive income. These titans of industry create passive income streams and invest heavily in assets that can produce them.

Real Estate

Whether its providing the initial capital to invest, serving as a main investment vehicle, or providing a safe haven for excess capital; real estate is perhaps the one consistent investment and asset that all of these successful individuals have in common.

Summary

It doesn’t matter your age or how you start your financial journey. As can be seen by the members of the Forbes Billionaire list, leveraging partnerships and acquiring passive income investments can build great wealth over the long term. By seeking out the investments and embodying these principles, more Canadians can experience greater progress toward their financial goals.

Posted in Canadian Economy, Commercial Real Estate, real estate investment, Richard Crenian
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