What is a Reserve Fund?

what is a reserve fund?

A reserve fund is a savings account or other highly liquid asset set aside by an individual or company to cover future costs or financial responsibilities, particularly those that arise unexpectedly. 

Less liquid assets may be employed if the fund is set up to cover the costs of planned renovations. A homeowner’s association, for example, may administer a reserve fund to assist sustain the neighborhood and its facilities with dues collected from homeowners.

How a reserve fund works

A reserve fund is set aside to meet planned, normal, and unplanned expenses that would otherwise be paid out of the general budget. Reserve funds can be established by governments, financial institutions, and private families.

Although the size of the fund may vary, the traditional purpose is to deposit monies on a regular basis in an interest-bearing account, growing the fund’s worthwhile if it is not in use. Reserve money is often kept in a highly liquid account, such as a savings account because expenses can emerge at any time.

Money is invested on behalf of fund members in pension funds, for example, and then paid out after retirement. When employees join a pension plan, they contribute to a reserve fund, which is used to ensure that money is accessible for other employees who have signed up to receive a payout when they retire.

reserve funds for condos/hoas

Reserve funds are frequently used by homeowners’ organizations and condominiums in the event of large-scale maintenance or renovation projects, as well as any costly communal emergency. Operating funds, which usually pay the community’s day-to-day expenses or regular costs, such as housekeeping, taxes, insurance, and utilities, are typically managed in tandem with reserve funds.

Dues, or HOA fees, are often established and maintained by condo communities and HOAs to cover upkeep, repairs, and other expenditures spent by the community. The monies are normally overseen and allocated by the community association’s board of directors. Rather than using money from the operating budget, the board might use money from the reserve fund to meet biennial insurance payments.

If a condominium incurs a major expense for which the reserve money is insufficient, each member or owner may be required to pay an assessment. When a condominium’s parking garage requires emergency repairs, for example, unit owners may be asked for additional payments in addition to their usual association dues.

reserve studies and managing reserve funds

The simplest method to avoid a special assessment is to make sure that the building’s reserve fund has enough money to cover all expenses, including those that come up unexpectedly. 

A reserve study, in which independent consultants examine the state of a property and give recommendations for the reserve fund based on physical and financial research, is frequently used by HOA boards to determine how much money should go into their reserve fund supply.

The specialists take into account the property’s age, existing condition, and amenities, as well as project maintenance expenses that may be required in the future. The final sum produced by a reserve study is merely a recommendation because condominiums or HOAs do not usually fully fund their reserves.

A poorly managed reserve fund can result in higher dues or assessments for community association members, thus prospective purchasers should research the efficacy of a particular HOA, or condominium complex, before acquiring a house under its jurisdiction.

Already have a reserve fund? Sounds like you might be an Accredited Investor! If you are, click here for more.

Is Real Estate Inflation Proof?

There’s no doubt that real estate is a great investment. Over time, it has proved to be one of the most stable and reliable ways to grow your wealth. But is real estate immune to inflation? And if not, what can you do to protect yourself against rising costs? 

In this article, we’ll explore the relationship between real estate and inflation, and give you some tips on how to stay ahead of the curve.

what is inflation?

Inflation is defined as a sustained increase in the prices of goods and services. It’s usually measured by the Consumer Price Index (CPI), which tracks the cost of a basket of everyday items. When inflation is high, your money doesn’t go as far as it used to. You might not notice it at first, but over time, the prices of things start to creep up.

why are we currently seeing inflation?

There are a number of reasons why inflation is on the rise. One of the main drivers is the global pandemic in 2020. The shortage of goods and materials and the increased demand for them have led to inflationary pressures.

Additionally, central banks around the world have been pumping money into the economy through quantitative easing (QE) programs. This is often referred to as “printing money,” and it can lead to inflationary pressures similar to what we’re seeing now.

how does inflation affect real estate?

Inflation affects real estate in two ways: home prices and mortgage rates. 

When inflation is high, home prices tend to rise as well. This is because demand for housing is usually high when there is economic growth, and prices go up when there aren’t enough homes to meet that demand. Mortgage rates also tend to rise during periods of inflation, because lenders are looking to protect themselves from the potential for higher prices down the road. Inflation can have a number of different effects on real estate. One of the most direct is on real estate prices. When inflation is high, prices for both commercial and residential real estate tend to increase. This is because as the cost of goods and services goes up, so does the cost of land and buildings. In addition to prices, inflation can also affect real estate buying behavior. When inflation is low, buyers are more likely to purchase real estate, since it’s a relatively safe investment. However, when inflation is high, buyers may be more hesitant to invest, since the value of their money is decreasing. Despite these effects, real estate is still considered a relatively safe investment during periods of inflation because it’s a physical asset that can’t be devalued by inflationary pressures. Additionally, real estate tends to appreciate over time, which can help offset the effects of inflation.

what does this mean for investors?

If you’re thinking of buying a home, it’s important to be aware of how inflation might affect your purchase. You’ll need to budget not only for the purchase price of the home but also for the higher mortgage payments that come with inflation. And if you’re already a homeowner, you’ll need to be prepared for your property taxes and insurance premiums to go up as well.

is real estate a safe investment during inflation?

Real estate is generally considered to be a safe investment during periods of inflation. This is because home prices tend to rise along with inflation. Since real estate is a physical asset, it’s not as susceptible to the volatility that can occur in the stock market.

However, there are some risks to consider. If inflation is high, interest rates are likely to rise as well. This means that your mortgage payments will go up, even if your home’s value doesn’t increase. And if you’re carrying a lot of debt, rising interest rates can make it difficult to keep up with your payments.

Let’s look at the main reasons why real estate is a great investment during periods of marketing instability and inflation:

  1. It’s a physical asset: Real estate is a physical asset, which means it’s not as susceptible to the volatility that can occur in the stock market.
  2. It tends to appreciate in value: Over time, real estate has tended to appreciate in value, even during periods of inflation.
  3. It can provide a steady income stream: If you choose to rent out your property, you can generate a steady income stream that can help offset the effects of inflation.
  4. It can be a hedge against inflation: Since real estate tends to appreciate in value during periods of inflation, it can be a good way to protect your wealth from the effects of rising prices.

The bottom line is that real estate is a great investment during periods of inflation. It’s a physical asset that tends to appreciate in value, and it can provide a steady income stream. However, there are some risks to consider, such as the potential for higher mortgage payments and the difficulty of carrying debt in an inflationary environment. But overallreal estate is a safe investment during periods of market volatility and inflation.

so, is real estate inflation proof?

Yes and no; here are some of the reasons real estate is not technically inflation-proof:

  1.  Home prices don’t always go up: 
    While home prices have tended to appreciate over time, they don’t always go up. In fact, there have been periods of deflation (when prices fall) in the real estate market.

  2. You still need to make mortgage payments: 
    Even if home prices go up, you’ll still need to make mortgage payments. In an inflationary environment, these payments will likely become more expensive.

  3. You could still lose money: 
    If you need to sell your home in a hurry, you could end up selling it for less than you paid for it.

  4. It’s not a liquid asset: 
    Real estate is not a liquid asset, which means it can be difficult to sell quickly.

Despite these risks, real estate is still a great investment during periods of inflation. Just remember to consider the risks before investing, and to consult with a financial advisor to get the most accurate advice for your situation.

If you’re thinking of buying a home or investing in real estate, it’s important to do your research and understand how inflation might affect your purchase.

Make sure you budget not only for the purchase price of the home but also for the higher mortgage payments that come with inflation. And if you’re already a homeowner, be prepared for your property taxes and insurance premiums.

how can you invest in real estate during periods of inflation?

If you’re thinking of investing in real estate, there are a few things to keep in mind. First, remember that real estate is a long-term investment. This means you’ll need to be prepared for periods of market volatility and inflation. 

You can also consider investing in real estate securities, such as REITs, which are designed to provide investors with exposure to the real estate market without the hassle of owning and managing property.

There is also fractional ownership, which can help inventors get started in real estate with a minimal budget. If you’re interested in this model, visit our friends at BuyProperly to learn more.

Finally, make sure you do your research and understand how inflation might affect your investment. By being prepared and knowing what to expect, you can protect yourself from the most common pitfalls.

No matter what your real estate goals are, it’s important to be aware of how inflation can affect your plans. By being prepared and knowing what to expect, you can protect yourself from the most common pitfalls.

In conclusion, real estate is a great investment during periods of inflation because it’s a physical asset that tends to appreciate in value, and it can provide a steady income stream. Just remember to consider the risks before investing, and to consult with a financial advisor to get the most accurate advice for your situation.

Alternative Investments: 8 New Ways to Grow Your Wealth

Are you looking to grow your wealth in new and innovative ways? If so, alternative investments may be the solution for you.

Alternative investments can include a wide range of options, such as fractional investing, venture capital, and more. By diversifying your portfolio with alternative investments, you can help reduce your risk while also increasing your potential for earnings.

So, if you’re ready to explore some new investment opportunities, read on for more details. Not only are these investments rising in popularity and becoming part of the average investor’s portfolio, but you may be surprised at just how beneficial they can be!

8 ALTERNATIVE INVESTMENTS

fractional investing

Fractional investing is a relatively new investment opportunity that allows you to invest in assets such as real estate, art, and wine. With fractional investing, you don’t have to purchase an entire asset – you can buy a small slice of it instead.

This makes it a more affordable option for investors, and it also allows you to diversify your portfolio more easily.

Fractional investing is a great way to get started in the alternative investment market because it allows you to invest in assets that you wouldn’t normally be able to afford.

This can be a great option for people who are new to investing and want to get their feet wet.

Remember, several different platforms offer fractional investing, so be sure to do your research before choosing one.

Invest in Success

We’re honoured to carry on the tradition of performance as stewards of the historic Karma Candy Building at 356 Emerald St. N. in Hamilton, and we’re excited to invite you to join us as co-owners of this property through BuyProperly.

Learn More

venture capital

Venture capital is an alternative investment that involves investing in early-stage companies. This can be high-risk, but it also has the potential for high returns. This investment is great for people who are willing to take on a little more risk to potentially earn a higher return, and for anyone that loves being a part of new and innovative ideas.

If you’re interested in venture capital, you’ll need to research the companies you’re considering investing in and be comfortable with the risks involved.

private equity

Private equity is the purchase of ownership in a company that is not publicly traded. This investment is typically made by a group of investors, and the goal is to improve the company’s performance and then sell it or take it public.

Private equity investing is a great option for people who want to be more hands-on with their investments and who are comfortable with a higher level of risk. Although private equity can be high-risk, it can also offer high returns.

art

Investing in art can be a great way to add some diversity to your portfolio. Art can be a good investment for both short-term and long-term goals, and it can appreciate in value over time. Art is a great investment for people who have an eye for aesthetics and who enjoy collecting.

When investing in art, it’s important to do your research and purchase pieces that you believe will hold or increase in value.

wine

Now we come to a fun (yet often overlooked!) investment opportunity.

Like art, wine is another asset that can appreciate in value over time. Wine is a popular alternative investment because it can be enjoyed both now and in the future. Some bottles can generate returns of 10-12% per year.

However, it’s important to remember that wine is a volatile investment, so you should only invest what you’re comfortable with losing.

It’s important to do your research before investing in wine, as some types of wine are more likely to appreciate in value than others.

peer-to-peer lending

Peer-to-peer lending is a form of alternative lending that allows investors to lend money to borrowers without going through a traditional bank. This can be a good option for people who are looking for lower interest rates and don’t want to go through the hassle of applying for a loan.

Peer-to-peer lending also offers the potential for high returns, but it’s important to remember that it can be a risky investment.

reits

Real estate investment trusts, or REITs, are a type of alternative investment that allows you to invest in real estate without actually buying property. REITs are an excellent option for people who want to invest in real estate but don’t have the time or resources to do it themselves.

REITs are a diverse investment, and there are many different types to choose from yielding a wide variety of returns. To get started investing in REITs, you can purchase shares on a stock exchange.

private placements

Private placements are alternative investments that are not available to the general public. They are typically only offered to accredited investors, which means they come with a higher level of risk. Private placements can be a good way to get access to alternative investments that you might not otherwise have access to.

You can find private placements through a variety of sources, such as angel investors, venture capitalists, and private equity firms.

When it comes to alternative investments, there are many options to choose from. New and innovative companies, technologies, and ideas make it easier than ever to get involved in lucrative projects!

It’s important to do your research and understand the risks involved before investing. These alternative investments can be a great way to add diversity to your portfolio and grow your wealth.

If you’re interested in getting started with real estate investing for only $2500, learn more about our latest opportunity with BuyProperly for the Karma Candy Building here.

Investing in a Volatile Market: Strategies to Succeed

It’s no secret that the current market is incredibly volatile. Prices are bouncing all over the place, and it can be hard to know what’s the right thing to do when it comes to investing in your future. 

In this blog post, we’ll go over some of the strategies you can use when investing in a volatile market, as well as some common mistakes people make during times like these.

So whether you’re a seasoned investor or just starting out, read on for some valuable insights!

what happens during periods of market volatility?

During periods of market volatility, prices tend to go up and down rapidly, making it hard to predict which way the market will move next. This can be a scary time for investors, as there is always the possibility of losing money. However, it’s important to remember that market volatility is normal and happens every few years.

When the stock market is volatile and inflation is on the rise, it can be difficult to know how to protect your investments. But there are some strategies you can use to help safeguard your portfolio.

Remember, there’s no “right” approach for everyone!  The best strategy for you will depend on your individual circumstances and goals. Be sure to speak with a financial advisor so you can figure out a plan that works for you.

Invest in Success

We’re honoured to carry on the tradition of performance as stewards of the historic Karma Candy Building at 356 Emerald St. N. in Hamilton, and we’re excited to invite you to join us as co-owners of this property through BuyProperly.

Learn More

the top 6 strategies investors can use during a period of market instability

1. Diversify your Portfolio

One of the best ways to protect your investments during a volatile market is to diversify your portfolio.

It means investing in a variety of different asset types, including stocks, bonds, and cash. This will help to mitigate your risk if one particular asset class starts to decline. It also means investing in a variety of geographies and investing in products.

As an example, your portfolio may include a combination of stocks from different sectors, such as healthcare, tech, and finance, bonds with different maturity dates, or different countries, like Canada, the US, and Europe.

2. Consider Alternative Investments 

Alternative investments can be a good way to diversify your portfolio and protect against inflation. Some examples include real estate trusts, commodities, and hedge funds.

3. Stay disciplined with your investing

It can be tempting to try to time the market during periods of volatility. Often, investors will veer off course in search of a great deal. However, this can be a recipe for disaster. The best way to approach investing during a volatile market is to stick to your investment plan and refrain from making impulsive decisions.  Investing longer periods of time, years rather than months helps even out the ups and downs of the market, and realize market growth over the longer term.

4. Review your investment mix

As market conditions change, so should your investment mix. Regularly reviewing and rebalancing your portfolio will help ensure that your investments are properly diversified and aligned with your goals. This means selling off assets that have increased in value and buying more of the assets that have lost value.

By doing this, you ensure that your portfolio stays diversified and aligned with your investment.

For example, if you’re close to retirement, you may want to adjust your portfolio to be more conservative. On the other hand, if you have a longer time horizon, you may be able to weather the ups and downs of the market and take on a bit more risk.

5. Be prepared for market corrections

A market correction is when the stock market experiences a sharp decline. These declines are often seen as a normal part of the market cycle. However, they can be difficult to stomach if you’re not prepared for them. Learning how to ride out a market correction will help you stay the course when your investments start to decline.

6. Try dollar-cost averaging

This involves investing a fixed amount of money into security or securities at regular intervals. By buying these securities over time, you’ll be able to average out the price and reduce your overall risk. This technique can help smooth out the ups and downs of the market.

With these tips, you (and your investment portfolio) will be better prepared to handle any periods of economic instability!

here are the 10 mistakes to avoid when investing during a period of market VOLATILITY

1. don't try to time the market

People often do this when they think the market is about to crash and they want to sell before it does. But no one can predict the future, so this strategy is often unsuccessful. If your timing is wrong, you could lose a lot of money or miss out on a rebound.

2. Don't invest everything at once

When the market is volatile, it’s often best to invest gradually over time. This way, you’ll be able to average out the price and reduce your overall risk.

3. Don't put all your eggs in one basket

As we mentioned above, diversification is key when the market is volatile. By investing in a variety of asset types and classes, you’ll be able to reduce your risk.

4. don't panic

It can be tempting to sell everything when the market is crashing, but this is often the worst thing you can do. If you sell too quickly, you’ll likely miss out on the rebound. Through diversification and smart portfolio management, you’ll be better prepared to avoid the dreaded “panic sell” mentality.

5. don't try to guess the bottom

A lot of people think they can predict when the market will hit rock bottom and start to rebound. But again, this is often unsuccessful. If you wait too long to buy, you could miss out on a lot of gains.

6. Don't get emotional about your investments

It’s important to remember that investments are just that – investments. They go up and down, and you need to be prepared for both. Getting too attached to your investments can cloud your judgement and lead to bad decisions.

7. don't forget about the fees

When the market is volatile, every penny counts. Be sure to check how much you’re paying in fees and expenses. These can eat into your returns and add up over time.

8. I’m factor in your taxes

When you sell investments for a profit, you’ll likely owe capital gains taxes. Be sure to factor this in when making decisions about when to sell.

9. always stick to comfortable levels of risk

Just because the market is volatile doesn’t mean you should take on more risk than you’re comfortable with. Be sure to stay within your risk tolerance levels and don’t make impulsive decisions based on market fluctuations.

10. don't forget about your goals

When making investment decisions, it’s important to keep your long-term goals in mind. Don’t let the market dictate your decisions. Stick to your plan and stay the course.

The more you hold onto your long-term investment vision, the less likely you’ll be swayed by short-term market fluctuations.

Although it seems simple, keeping these strategies in mind will help you feel more secure as you invest and grow wealth for your future (especially when the market becomes unpredictable)!

Investing during periods of market volatility can be difficult, but there are some strategies you can use to help reduce your risk. By diversifying your investments, using dollar-cost averaging, and avoiding common mistakes, you’ll be in a better position to weather the storm.

By staying diversified, investing gradually, and focusing on your long-term goals, you’ll be well on your way to success.

Looking to add to your real estate investment strategy? Learn more about our latest opportunity with BuyProperly.

karma candy building

Now You Can Enter the Real Estate Market With Just $500, Thanks to BuyProperly

“BuyProperly provides you with the benefits of investing in cities with huge capital appreciation — without bearing the brunt of high real estate costs,” says BuyProperly CEO Khushboo Jha. “Our mission is to enable investors like you to grow your wealth through alternate asset classes.”

With BuyProperly, you can enter the real estate market for just $500. Use the promo code BEGIN@500 at BuyProperly.ca to get started.

What is BuyProperly?

Founded in Toronto in 2019, BuyProperly is a fractional real estate investing platform that lets you enter the real estate market through a quick and easy online transaction.

Through BuyProperly.ca, you can go online and complete a fractional real estate investment with expected returns of 20 to 40% in less than 7 minutes.

“There’s only one objective: to give the customer’s options to invest in good deals. That’s it,” Khushboo told Bay Street Bull.

“There’s only one objective: to give the customer’s options to invest in good deals.”

— Khushboo Jha
BuyProperly CEO

BuyProperly grows your wealth by identifying high yield properties with a cutting-edge proprietary AI model.

You’ll earn passive rental income alongside your long-term investments. When a property is sold, your investment principal is paid back to you, plus appreciation.

How does it work?

BuyProperly’s selection process has three stages:

  1. First, using an AI model that looks at 20 years of MLS data, BuyProperly finds assets listed for less than their fair market value. This is determined through 500 million data points, including information on nearby schools, banks, neighbourhood shops, local demographics and economic data.
  2. Next, BuyProperly’s investment committee reviews actual, up-to-date numbers and data to detect red flags not captured in the initial evaluation.
  3. Then, BuyProperly undertakes an in-person inspection. Only 1% of properties reviewed pass BuyProperly’s rigorous evaluation and appear on the BuyProplerly website for you to invest in.

BuyProperly rents the fractionally-owned properties to high-quality, AAA tenants, earning you passive income alongside your long-term investments. In a few simple steps, you can open up a free account and start investing!

emerald street drone
Properties like the Karma Candy Building at 356 Emerald St. N. in Hamilton — which you can invest in on BuyProperly — offer tremendous upside potential.

What Are BuyProperly’s Main Benefits?

    • No need to qualify for a mortgage
    • No downpayment required
    • None of the pain of managing a property or being a landlord
    • No closing costs
    • No need to find tenants or maintain the property
    • You’ll get a share of rent and gains on the property when it’s sold

Properties like the Karma Candy Building at 356 Emerald St. N. in Hamilton  — which you can invest in on BuyProperly — offer tremendous upside potential.

The complex is 280,000 sq. ft and comprises industrial and office units. The property also includes 118 and 65 Shaw St. Karma Candy is set to lease back the entire property. 

What are the experts saying?

“I’ve had the fortunate opportunity to be a part of BuyProperly and Khushboo’s journey since the beginning,” Saurabh Dutta, Partner at Nurture Ventures, said in a statement. “The market need for fractional real estate investing is clear through the customer growth BuyProperly has seen in only a short amount of time.”

“Khushboo and her team created the new hidden gem of real estate investing,” Margaux Perrin said on Bay Street Estate Bull.

“Khushboo and her team created the new hidden gem of real estate investing.”

Margaux Perrin, Bay Street Bull

Here’s How to Join BuyProperly and Enter the Real Estate Market for $500

It’s quick and easy for you to create an account at BuyProperly.ca. Then, use the promo code Begin@500 at BuyProperly.ca to get started with an investment of just $500.

Are you interested but have a few more questions? The folks at BuyProperly are happy to chat! It’s quick and easy to schedule a call with them. Just book a meeting and choose a time that suits you best!

356 Emerald

Webinar: Why You Should Invest in the Karma Candy Building

BuyProperly just launched a new property in Hamilton, The Karma Candy Building, and you can invest starting at just $2,500. 

Are you new to BuyProperly? Get started with only $500! Use promo code BEGIN@500.

The webinar features Braydon Kustra, Vice President of Investor Relations at Forge & Foster, and Khushboo Jha, CEO and co-founder of BuyProperly.

In this 30-minute webinar, we will be talking in detail about the ideal location, sophisticated business plan, expected returns, and much more for this real estate investment opportunity.

 

emerald drone shot

The Karma Candy Building: A Timeless Gem

We’re honoured to carry on the tradition of performance as stewards of this historic building, and we’re excited to invite you to join us as co-owners of The Karma Candy Building through BuyProperly.

American Can Timeline

“No Canadian city offers better facilities for factories than Hamilton with its natural gas, cheap electric power, factory sites, shipping facilities, water and rail, labour conditions, blast furnaces and steel plants,” reported Macleans Magazine in 1911.

That same year, the American Can Company built a sprawling three-storey brick-and-beam factory at Emerald and Shaw, just north of the tracks.

American Can building
The American Can Company Factory at 356 Emerald St. N.

Incorporated in 1901, the American Can Company‘s culture of innovation led them to develop:

      • a method of mass-producing tin cans by replacing hand-soldiered joints with mechanical crimping
      • an enamel lining to protect foods from discolouration
      • a double-tight friction paint can lid to keep remnants from drying out
      • an improved process for vacuum-packing coffee

The American Can Company found such success at the Emerald Street site that they eventually outgrew it and moved production to the former Sawyer-Massey Company factory, north of the railway tracks between Wellington and Victoria.

allan candy company timeline

The Allan Candy Company moved into 356 Emerald in 1961. Allan Vertlieb, who got his start in sweets by making lollipops in his kitchen and selling them out of his house, founded the company here in Hamilton in 1931.

Prior to the move to Emerald Street, the Allan Candy Company had two production plants. The Mary Street operation made chocolate, while the Aldershot location made sweets like lollipops and Halloween kisses.

allan candy co kisses

On June 30, 1962, The National Post reported:

Allan Candy Co., Burlington, has bought the former American Can Co., plant at Shaw and Emerald Sts. New owner will occupy about 50% (about 90,000 sp. ft.) for manufacturing and storage. Remaining space, about 96,000 sp. ft., will be leased to interested parties. About $35,000 ($343,000 in 2022 dollars) will be spent on plant renovationsPurchase price was reported to be $115,000 ($1.1 million in 2022). Some increase in employment is expected.”

The move ushered in a colourful new era on Emerald, one of Big Foots, Hot Lips, Mr. Solid Easter Bunnies, and perhaps most famously, Sour Patch Kids, “the hottest candy sensation of the ’90s”.

Sour Patch Kids

After its acquisition by Cadbury in 1995 and ReichmannHauer in 2007, the Allan Candy Company sold the Emerald St. factory to Karma Candy Inc.

karma candy timeline

karma candy hamilton

Karma Candy has become the largest private label and contract manufacturer of seasonal confectionery products in Canada.

What are seasonal confectionery products? Think chocolate bunnies and candy canesLots of them. In fact, as Canada’s only candy cane manufacturer, Karma Candy can crank out over one million candy canes a day.

CityNews visited Karma Candy Inc. two days before Christmas 2016. 

Karma Candy is a thoroughly modern candy company.

Their environmental stewardship program diverts 85% of operation waste from landfills through an extensive recycling program for all corrugate, foils, plastics, films, food waste, metal and wood. Plus, they continually work with their suppliers to reduce waste.

Their products are not only delicious, they’re also:

    • organic
    • non-GMO
    • vegetarian
    • kosher
    • gluten-free

It’s not the property or the products produced at 356 Emerald that make it special — it’s the people. It’s people like Frank Raso.
From The Times Herald, October 9, 1977:

allan-candy-success-story

In this 1984 photo from The Windsor Star, Isabel Carvalho adds candy eyes to a parade of Easter bunnies at Allan Candy Co. Ltd.allan-candy-easter-bunny

forge and foster timeline

Now, through BuyProperly, you can co-own The Karma Candy Building.

Founded in Toronto in 2019, BuyProperly is a fractional real estate investing platform that lets you enter the real estate market through a quick and easy online transaction.

BuyProperly provides you with the benefits of investing in cities with huge capital appreciation — without bearing the brunt of high real estate costs,” says BuyProperly CEO Khushboo Jha. “Our mission is to enable investors like you to grow your wealth through alternate asset classes.”

With BuyProperly, new investors can enter the real estate market for just $500. Use the promo code BEGIN@500 at BuyProperly.ca to get started. (Experienced BuyProperly investors can buy shares for $2,500.)

The Karma Candy Building complex is 280,000 sq. ft and is comprised of both industrial and office units. The property also includes 118 and 65 Shaw St. Karma Candy is set to leaseback the entire property.

Are you a new investor? Get started with only $500! Use promo code BEGIN@500.

WHAT ARE BUYPROPERLY’S MAIN BENEFITS?

  • No need to qualify for a mortgage
  • No downpayment required
  • None of the pain of managing a property or being a landlord
  • No closing costs
  • No need to find tenants or maintain the property
  • You’ll get a share of rent and gains on the property when it’s sold

Get started now and be part of Hamilton’s sweet history as a co-owner of The Karma Candy Building through BuyProperly. 

karma candy building

The industrial asset class is on the rise

Industrial real estate markets continue to experience strong demand, as evidenced by these recent news reports:

CanFirst acquires $222.6M GTA industrial portfolio

RENX, November 11, 2022
The CanFirst Industrial Realty Fund VII LP has acquired a 13-property, 710,389-square-foot portfolio in Vaughan, Ont. from IG Investment Management for $222.6 million.

“We’re excited to be able to acquire assets in this node in Vaughan,” CanFirst Capital Management executive vice-president Mark Braun told RENX. “It’s always been a challenge to find properties in the area, certainly at a price point that’s competitive or allows us to transact.”

The portfolio encompasses 38.9 acres of land. The deal was brokered by CBRE and attracted interest from several potential purchasers.

The transaction, which closed Monday, represents a price of $313 per square foot.

All of the properties are located within about a kilometre of each other in Vaughan, and CanFirst is interested in acquiring more such locations in the city of approximately 340,000 people located directly north of Toronto. READ MORE >>

Dream, Singapore’s GIC to acquire Summit industrial for $5.9B

RENX, November 7, 2022
Dream Industrial REIT (DIR-UN-T) and Singapore-based investment manager GIC have formed a joint venture to acquire Summit Industrial Income REIT (SMU-UN-T) in an all-cash transaction that values the trust at approximately $5.9 billion. READ MORE >>

Artis sells Minnesota industrial portfolio for $335M

RENX, November 4, 2022
Artis Real Estate Investment Trust has closed the sale of 17 industrial properties in the Twin Cities area of Minnesota for a total of $335 million Cdn.

The properties, together known as the Minnesota Industrial Portfolio I, cover 2.5 million square feet.

After mortgage financing and other closing costs, the profit from the transaction stood at $199.4 million. READ MORE >>

Skyline acquires $309M industrial portfolio in Calgary, Edmonton

RENX, September 12, 2022

Skyline Industrial REIT has completed its largest-ever transaction, entered the City of Edmonton and expanded its holdings in Calgary with the acquisition of a $309.25 million portfolio comprising more than two million square feet of space.

Skyline said the vendor is a “major Canadian pension plan” but did not identify the former owner. READ MORE >>

What Is Bad Credit?

Bad credit refers to a person’s history of not paying bills on time, as well as the possibility that they would do so in the future. A bad credit score is frequently the result. Companies can also have bad credit if their payment history and current financial status are not in good standing.

Because they are deemed riskier than other borrowers, a person (or company) with negative credit will find it difficult to borrow money, especially at competitive interest rates. This is true of all forms of loans, including both secured and unsecured ones, but the latter has some options.

Understanding Bad Credit

Most people who have ever borrowed money or applied for a credit card have a credit file with one of the three major credit bureaus: Equifax, Experian, or TransUnion. The information in those files is used to calculate their credit score, which is a figure that serves as an indication to their creditworthiness and includes how much money they owe and whether they pay their payments on time. The FICO score, named after the Fair Isaac Corporation, is the most widely used credit score in the United States.

  1. 35%—payment history. This is given the most importance. It simply shows whether the person with the FICO score has paid their payments on time. Even a few days late can count, yet the longer the payment is late, the worse it is viewed.
  2. 30%—total amount an individual owes. Mortgages, credit card balances, vehicle loans, any bills in collections, court judgments, and other debts fall under this category. The person’s credit usage ratio, which compares how much money they have available to borrow (such as total credit card limits) to how much they owe at any given time, is ‌essential. A high credit usage ratio (say, greater than 20% or 30%) can be interpreted as a red flag and result in a worse credit score.
  3. 15%—length of a person’s credit history.
  4. 10%—mix of credit types. Mortgages, vehicle loans, and credit cards are all examples of this.
  5. 10%—new credit. This includes any jobs or internships that someone has recently started or applied for.
Examples of Bad Credit

FICO scores range from 300 to 850 and debtors with scores of 579 or lower are typically considered having poor credit. 

Fair is described as a score between 580 and 669. These borrowers are significantly less likely to default on loans, making them far less hazardous to lend to than individuals with poor credit scores. However, consumers in this range may incur higher interest rates or have difficulty obtaining loans than borrowers with credit scores closer to the top 850.

How to Improve Bad Credit

There are things you may take if you have low credit (or fair credit) to raise your credit score above 669 and keep it there. Here are some pointers on how to do just that.

Set Up Automatic Online Payments

Do this for all of your credit cards and loans, or at the very least, sign up for the lenders’ email or text reminder lists. This will ensure that you pay at least the monthly minimum on time.

Pay Down Credit Card Debt

Whenever workable, pay more than the minimum payment due. Set a reasonable payback target and strive toward it over time. Paying more than the minimum due will help you increase your credit score if you have a lot of total credit card debt.

Check Interest Rate Disclosures

These disclosures are provided by credit card accounts. Concentrate on paying off the debts with the highest interest rates first. This will free up the most money, which you can then use to pay down other obligations with lower interest rates.

Keep Unused Credit Card Accounts Open

Keep your unused credit card accounts open. Also, don’t create any new accounts that you don’t require. Either action has the potential to harm your credit score.

If you’re having trouble getting a conventional credit card because of your bad credit, consider applying for a secured credit card. It works in the same way as a bank debit card in that you can only spend the amount you have on the deposit. Having a secured card and making timely payments on it can help you rehabilitate your credit and eventually qualify for a regular card if you have a low credit history. It’s also a wonderful approach for young individuals to build their credit history.

Looking for a stress-free way to get started in real estate investing? Check out our current offering with Buy Properly. Buy Properly utilizes a fractional ownership concept to assist investors to build their real estate portfolios. Click here to learn more. >>

How to Invest in Real Estate with Little Money

options are still available

It’s true, you can absolutely purchase property with little or no money available. How? By using some of the following creative financing techniques.

Before we dive in, have you considered fractional real estate investing? This is a new, but very attainable way to invest in real estate.

Why alternative forms of real estate investing are becoming more popular

In recent years, alternative forms of real estate investing have become more popular with investors who are looking to buy a property with little or no money down. This is because traditional forms of financing, such as bank loans, are becoming harder to obtain.

With house prices rising across Canada and the United States, it’s becoming increasingly more difficult for people to “buy in” to the real estate market.

To purchase an investment property, most lenders require a 20-30% down payment. This could be anywhere from $20,000 up to $200,000 or more just for a single-family, residential property!

On top of land transfer taxes, surveys, inspections, and lawyer’s fees, these expenses are enough to push many investors out of the market.

Ongoing real estate expenses
Aside from your down payment and closing costs, investing in real estate also comes with monthly expenses. These include:
  • Insurance
  • Property taxes
  • Maintenance and repairs
  • Condo and management fees
  • Mortgage payments + interest
  • Rental and vacancy expenses
  • Ongoing property management

This means that investors need to set aside even more money to handle monthly expenses that come up. Is it possible to invest in real estate without having a large amount of capital available? AbsolutelyLet’s explore some of the most common ways to invest in real estate with little money.

Fractional investing

 

Fractional investing is a newer concept that’s gained popularity in recent years. It allows investors to pool their money together to purchase a share of an investment property.

This type of investment is often made through a real estate crowdfunding platform, which connects investors with developers who are looking to finance their projects.

With fractional investing, you can spread your investment amount over multiple properties, which also helps to mitigate risk and increase your diversification.

It’s also a great way to get started in real estate investing with little money as you can typically invest as little as $2500.

Seller financing

 

Another option for investors looking to buy a property with little money down is seller financing.

With this type of financing, the seller agrees to act as the bank and provide you with a mortgage. This could be in the form of an interest-only loan or a balloon payment loan.

Seller financing can be a great option for both buyers and sellers. The buyer gets to purchase the property with little money down and the seller gets their asking price for the property.

REITs

 

REITs, or real estate investment trusts, are another way to invest in real estate without having to put down a large amount of money. REITs are companies that own and manage income-producing properties, such as office buildings, shopping malls, apartments, and warehouses.

REITs are traded on stock exchanges and can be bought and sold just like any other stock. This makes them a liquid investment, which is ideal for investors who want to cash out quickly if needed.

Since REITs are traded on stock exchanges, they also offer the potential for growth through capital appreciation.

The downside of investing in REITs is that they’re subject to the ups and downs of the stock market. This means that your investment could lose value if the stock market declines. In addition, there are fees associated with owning a REIT and you often don’t have any transparency about the properties that you are investing in.

Lease-options

 

A lease option is another creative way to invest in real estate with little money down. With a lease option, you agree to lease a property from the owner for a set period.

The length of the lease will depend on the agreement between the buyer and seller, but it’s typically 1-5 years.
During the lease period, the buyer has the option to purchase the property, but they’re not obligated to do so.

Lease options are a great way to get into a property without having to put down a large amount of money. The downside is that you’re not guaranteed to purchase the property at the end of the lease period.

Wraparound mortgages

 

A wraparound mortgage is another financing option for investors looking to buy a property with little money down. With a wraparound mortgage, the buyer agrees to make payments on the existing loan and takes over responsibility for the property.

The buyer then charges their own tenant a higher rent amount and uses that money to make the monthly payments on the mortgage.

Wraparound mortgages can be a great way to get into a property with little money down, but they’re not without risk. If the tenant doesn’t pay their rent on time, the investor could be responsible for making the mortgage payments.

House hacking

 

House hacking is a strategy that allows investors to live in the property they’re purchasing while renting out the other rooms to tenants.

This is a great way to get started in real estate investing as it allows you to live in the property while someone else helps to pay the mortgage.

House hacking can be done with any type of property, but it’s most commonly done with multifamily properties, such as duplexes and triplexes.

The downside of house hacking is that it can be a lot of work. The investor is responsible for finding tenants, collecting rent, and maintaining the property.

Subject-to properties

 

A subject-to-property is a property that’s purchased with the existing mortgage in place.

With this type of purchase, the buyer takes over responsibility for making the monthly mortgage payments, but the seller remains on the hook for the loan.

Subject-to properties can be a great way to get into a property with little money down, but they’re not without risk. If the buyer stops making the mortgage payments, the property will go into foreclosure and the seller will be responsible for any deficiency.

Contract for deed

 

A contract for deed is an agreement between a buyer and seller that allows the buyer to purchase a property while making payments over time.

The buyer doesn’t take ownership of the property until the contract is paid in full.

Contracts for deeds are a great opportunity for buyers, but they’re not without risk. If the buyer stops making the payments, the seller can cancel the contract and evict the buyer from the property.

Joint ventures

 

A joint venture is an agreement between two or more people to work together on a specific project.

In the context of real estate investing, a joint venture is an agreement between two or more people to purchase a property and share in the profits.

Joint ventures are a great way to get into a property with little money down as they allow you to pool your resources with another person or group of people.

The downside of joint ventures is that they can be complex and there’s always the risk that one party will default on the agreement.

Crowdfunding

 

Crowdfunding is a way of raising money from a large group of people.

In the context of real estate investing, crowdfunding allows investors to pool their resources and invest in a property together. Although similar to a fractional model, crowdfunding focuses more on raising capital as opposed to investing in fractional shares of a property.

Crowdfunding platforms such as RealtyMogul and Fundrise make it easy for investors to get started in real estate with little money down.

The downside of crowdfunding is that it’s often a hands-off investment and you’re relying on the platform to manage the property.

Sweat equity

 

Sweat equity is the value of the work that you put into a property.

For example, if you purchase a fixer-upper and put in the time and effort to renovate it, your sweat equity would be the value of the renovations that you did.

Sweat equity can be a great way to get into a property with little money down since it opens up opportunities to get lower-priced properties with huge potential for appreciation. Keep in mind, if the property doesn’t appreciate in value or if the renovations take longer than expected, you could end up losing money on the deal.

Options

An option is a contract that gives the buyer the right, but not the obligation, to purchase a property at a set price within a certain period.

Options are a great way to get into a property with little money down as they allow you to control the property without having to put up all the cash for the purchase price.

The downside of options is that they can be complex and there’s always the risk that the property will decrease in value, leaving the buyer with an option that’s worth less than the purchase price.

There are several ways to get into real estate with little money down. 

The best option for you will depend on your individual circumstances. If you’re looking for a hands-off investment, crowdfunding may be the way to go. If you’re willing to put in the work, a subject-to-property or a fixer-upper may be the best option. Fractional investing is a great option for people who want to own a piece of real estate without the headaches that come along with maintenance and management.

Whatever route you decide to take, do your research and understand the risks involved.
Ready to get started? Take a look at our newest opportunity here and learn how you can get started for only $2,500.

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