“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. As BuyProperly’s first commercial real estate partner, Forge & Foster will waive BuyProperly’s annual management fee. 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:
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.
Next, BuyProperly’s investment committee reviews actual, up-to-date numbers and data to detect red flags not captured in the initial evaluation.
Then, BuyProperly undertakes an in-person inspection. Only 1% of properties reviewed pass BuyProperly’s rigorous evaluation and appear on the BuyProplerlywebsite 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!
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 Switchyard, which is located at 4256 Carroll Avenue and 5900 Thorold Stone Road in Niagara Falls, Ontario, offer tremendous upside potential through redevelopment. And BuyProperly offers you an opportunity to invest in it.
These 92,800 square foot, multi-tenanted industrial buildings are situated on 3.8 acres.
The property’s “General Industrial” designation allows for a variety of uses, such as:
cold storage facilities
It’s in a great area with residential neighbourhoods to the west and north. Old downtown and Queen Street are a five-minute drive away, and the Clifton Hill tourist area is a nine-minute drive.
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!
How to Build Wealth in Your 30s: Simple Steps to Become Financially Free
“Financial freedom” is becoming a buzzword nowadays, but what does it actually mean? When it comes to learning how to build wealth in your 30s, patience, persistence, and a solid plan are at the root of this new financial freedom movement.
Here are 6 simple tips to get you started on the road to wealth-building and financial independence.
Let’s dive in!
1. Make a budget (and live within your means)
The first step to building wealth in your 30s (or at any age for that matter!) is to make a budget and stick to it.
Many people never realize how much money they’re actually spending each month and how much could be saved by simply creating a budget and learning to consciously live within their means.
How should you create a budget? Here’s a simple guide to follow:
Calculate your total net income for both you and your partner: make sure to build your budget based on your take-home pay each month.
Calculate all your fixed expenses: this includes all the expenses that are predictable and stay consistent each month like your mortgage, rent, insurance, car payments, etc.
Calculate all your variable expenses: variable expenses include all of your discretionary spending and bills that change from month to month like groceries, dining out, utilities, and leisure activities.
Set aside money for debt repayment and wealth-building: Ideally, you should be able to set aside between 10-20% of your net income for debt repayment, savings, and investing.
If you don’t have any wiggle room in your budget, start looking for fixed and variable expenses you can cut back on. Here are some ideas to keep in mind:
– Are there any subscriptions you’re not using? Netflix, Amazon, and that old gym membership may seem like nothing, but those monthly subscriptions can really add up! Take a look at where you can cut back to save some extra money.
– Are you paying high interest rates on any loans? Credit card debt can cost thousands in interest charges, so it’s always best to prioritize those high-interest loans when repaying debt. If you’re struggling to make a dent in your loan, call the bank and ask what your options are for lowering the interest rate.
– Have you shopped around for new insurance rates lately? Car, home, and life insurance premiums can creep up without us ever noticing. If it’s been a while since you’ve looked into those payments, it may be worth shopping around to see if you can find a better deal.
– Is dining out eating up all your extra cash? After work, it can be tempting to grab a ready-made meal or takeout from a local restaurant. If you’re spending a lot of your monthly income at restaurants, look into cost-effective options like batch-cooking and meal prepping.
Learning how to build wealth in your 30s isn’t always about making more money. Sometimes the quickest and easiest way to find extra money is to take a good hard look at what you’re spending and find creative ways to save!
How much money should 30-year-olds have saved?
There’s no right or wrong answer for how much you should have saved by the time you turn 30 since it depends on your income, lifestyle, and the wealth-building opportunities available to you.
Most experts suggest saving 10-20% of your pre-tax income each month for retirement. According to Statistics Canada, as of 2020, the average salary for Canadians was $54,630. This means $455-$910 would be an ideal amount to put towards savings each month.
If you’re just getting started at 30 and you’re able to invest $900 each month in accounts or investments that yield a 5% annual return, you would have just over $980,000 by the time you’re ready to retire at 65!
2. Pay off debt as quickly as possible
Debt can rack up some serious interest payments that eat into your potential wealth-building opportunities. According to BNN Bloomberg, as of December 2020, Canadians now owe $1.71 for every dollar of disposable income they have to spend.
What’s the hidden cost of high-interest debt? Let’s say you have credit card debt totalling $10,000 at an 18% interest rate. If you decide to pay $200 towards this debt, it will take 94 months to pay off AND cost you $8,622 in interest.
If you decide to increase that payment to $400 per month, your credit card will be paid off in 32 months and you’ll pay only $2627 in interest.
That means you’d be saving $5,995 which could be put towards savings, retirement, or investments that will help grow your wealth over time.
If you’re battling with high-interest loans and credit card debt, one of the fastest ways to pay it off is by focusing on the highest-interest loan first (a.k.a. “The Avalanche Method”). This method for debt repayment frees up more cash month-over-month as you continue paying down those debts.
3. Work on your money mindset
So many have us have been conditioned to believe we can’t be wealthy or that only a select few people are lucky enough to be financially secure.
Although it’s important to acknowledge the privilege of being able to work full time, earn an income, and invest in various financial markets, it’s also important to realize that it’s never too late to start investing and growing your wealth.
The first thing you can do to get comfortable with money is to start talking about it. Open up a dialogue with family and friends about savings and retirement. Talk with coworkers about financial resources available through your employer. Find financial advisors and professionals who can teach you how to build wealth in your 30s and deconstruct some of the money myths you believe.
The quickest way to change your mindset about money is to surround yourself with people, conversations, and thoughts that are different from your own.
If you’re willing to challenge some of the long-held beliefs you have about money, you’ll find new and amazing opportunities to start building wealth and take steps towards becoming financially free.
4. Learn as much as you can about investing
Everyone knows the power of smart investing, but many people are too intimidated to take the first step to get started. After all, where should you put your money? Stocks? Bonds? Real estate?
The fastest way to grow your wealth is to get educated about investing so you can make informed financial decisions.
What can you do to learn?
One of the simplest ways to learn about investing is to go to the local library or book store to find some books on budgeting, saving, and investing. Here are some great books to start with: – The Intelligent Investor: The Definitive Book on Value Investing – The Book on Rental Property Investing – Investing in Your 20s & 30s For Dummies
Join supportive communities
Eager to dive in and talk about investing? Find local or online communities you can join to learn all about investing. If you don’t have any business clubs in your area, look online on Reddit or Facebook for supportive communities to join. Here at Forge & Foster Investment Management, you can engage with us on Twitter, Facebook, Instagram and LinkedIn.
Speak with financial professionals
Take advantage of all the professional wealth-building advice you can. Book an appointment with a financial advisor at your bank. Talk to your employer to ask about RRSP opportunities. Meet with an accountant to discuss ways you can find more money in your budget to invest.
Attend seminars and/or events
Going to local events is a fantastic way to learn valuable financial skills and network with like-minded investors. Not sure where to find events in your area? Simply head to Google and look for investment conferences, business groups, and meetups in your local area.
The more you educate yourself about money, the more opportunities you’ll find to build your wealth.
5. Diversify your portfolio
Many of us have heard of the saying “don’t put all your eggs in one basket” and this is absolutely true when it comes to building long-term wealth. Diversifying is one of the best ways to ensure you’re protecting your money.
What does diversification look like? Simply put, diversifying your portfolio means investing in a variety of different industries, sectors, and asset classes. This could include stocks, bonds, real estate, currencies, and more.
Diversification is a key component to building wealth because it allows you to spread your money around to mitigate risk and better predict expected growth.
While investing in something like Bitcoin may bring some temporary gains, it can also be extremely volatile. Balancing out those volatile investments with the long-term appreciation from rental properties, for example, would create a more stable portfolio.
BuyProperly helps new investors get started in real estate investing for as little as a $2,500 initial investment. Learn more at www.buyproperly.ca.
Speak with your financial advisor about different ways you can diversify your investments for maximum growth.
6. Remember to be patient
Building wealth doesn’t happen overnight: it takes time, dedication, and patience to see the best results.
One of the biggest secrets to wealth-building is the compounding effect that comes from reinvesting your money over time. The more returns you’re able to reinvest in the market, the higher your earnings will be! This snowball effect is what creates stable, long-term opportunities.
Don’t get discouraged if you can only invest a small amount of cash at the beginning, or if your investments don’t make you a millionaire overnight. The key is to make smart financial decisions that will set you up for long-term wealth and success.
If you follow these simple wealth-building tips, you’ll be one step closer to financial freedom.
Want to learn more about how to build wealth in your 30s? BuyProperly is on a mission to make real estate investing accessible for everyone.
Are you a brand new investor ready to start growing your real estate portfolio? Maybe you have a few investments and you’re eager to diversify and learn more about multifamily real estate investing.
No matter where you are in your investment journey, diversifying your real estate portfolio is a fantastic way to generate more cash, reduce risk, and grow your wealth.
If you’re in the market for a new investment, a multifamily property may be the perfect fit for you and your goals. Below, we’ll discuss the pros and cons of multifamily investing, along with our top tips for how you can find your first (or next) multifamily property deal.
What is multifamily real estate?
A multifamily home is essentially a single building that’s separated into units, or dwellings, to accommodate 2 to 4 families. This includes duplexes, triplexes, and quadruplexes.
Anything above 4-units is considered a “commercial” property. A house or apartment with only one dwelling is simply considered a single-family.
According to Statista, multifamily property investing shows no signs of slowing down! In 2023, there will be an expected 5.39 million multifamily properties in Canada, which is an increase from 4.96 million in 2018.
What are the pros of multifamily real estate investing?
Multifamily properties offer some incredible benefits to real estate investors. Here are some of the top reasons you should consider adding multifamilies to your real estate portfolio:
One of the biggest pros of multifamily family real estate investing is the ability to have an owner-occupied real estate investment. This means you can buy the property and live in one unit while renting out the others and collecting cash to pay down the mortgage!
This is a great opportunity to “house-hack” and start building equity in real estate quickly.
Another pro of multifamily investing is that your cash collected will accumulate faster. More units to be rented means more cash, which allows you to reinvest and continue building your real estate portfolio.
Multifamily properties generally reduce your risk of full vacancy. Unlike single-family homes (when losing a tenant means you’re at 100% vacancy) multifamily properties give you the opportunity to spread out cash flow between 2-4 dwellings.
This means a non-paying tenant or sudden vacancy won’t hit you (and your bank account) as hard.
Looking after several “doors” under one roof tends to be easier on managers. There are fewer independent buildings to keep track of and less travel required for inspections, emergencies, and general maintenance. This means you’ll save on property management fees, and you’ll have fewer headaches if you manage the property yourself.
Owning multifamily properties means you can take advantage of great tax benefits. You’re able to deduct maintenance fees and operating costs including utilities, management fees, insurance premiums, and marketing costs.
What are the cons of multi-family real estate investing?
Although there are some incredible benefits to owning multifamily properties, there are some drawbacks that come along with this type of investment.
Let’s go over them in detail.
High market entry costs
Generally, multifamily properties are significantly more expensive than single families which limits many people from being able to start with this type of investment. The price tag is often hundreds of thousands (or even millions) of dollars depending on your market.
Higher degree of management required
Many investors choose to manage single families and duplex properties on their own, but once you start investing in 3 and 4-unit buildings, property management becomes incredibly important.
Great property managers will help keep your units full of happy tenants by filling vacancies quickly, collecting monthly rents, performing routine maintenance, responding to requests for repairs, and conducting regular inspections of the building.
More units means more tenants which, inevitably, means a higher degree of management is needed to keep the property cash flowing.
Multifamilies tend to incur higher maintenance costs. Instead of maintenance and repair costs on one unit, multifamily investors need to worry about 2-4 units! This cost is easily offset by the increased cash flow, but new investors should be prepared for potentially higher maintenance and repair costs upfront.
The good news?
No matter which type of property you choose to invest in, you can do it even with limited cash on hand. Through fractional investing, BuyProperly allows people to invest in real estate for as little as $2500. This means your dreams of adding a rental unit to your portfolio are 100% achievable! Want to learn more? Visit www.buyproperly.ca to get started on your real estate investment journey.
What should you look for in multifamily real estate investing?
The property you purchase should 100% depend on your goals.
If this is your first real estate investment or if you’re hoping to “house-hack” and buy something smaller to offset your mortgage costs, a duplex is a great option. Similarly, if you want to manage the property yourself and keep your portfolio small, stick with a 2-unit.
If you’re working with investment partners, you want more cash flow, or you’re looking to grow your portfolio quickly, consider a 3 or even 4-unit property!
You should also consider how much time and money you’ll have to dedicate to your new investment.
If you’re a full-time investor ready to dive in and you’re not afraid of some hands-on management, a larger building may not seem so intimidating to you.
Many of the investors who purchase multifamilies through BuyProperly are looking for a more “passive income” project where they can grow wealth and see returns without having to be involved in the day-to-day management. If that sounds like you, sign up to view a list of their available properties.
We’ll talk more about how to evaluate multifamily properties in a moment.
How to find your first multifamily real estate deal
If you’ve weighed the pros and cons and decided multi-family real estate investing is the way to go, it’s time to find your first property deal!
The first thing to do when you’re looking for the right multifamily property is to contact a local realtor. They often have connections, opportunities, and deals that aren’t listed on public websites. They also tend to have great networks with other investors who may be interested in partnering with you.
Second, join all the local networking groups you can. Find Facebook groups, forums, and local meetups to connect with other investors to talk about real estate. Some of the best deals can be found through word-of-mouth and networking!
Third, consider investing out-of-town. If your local market doesn’t have a lot of availability or it’s too expensive, consider expanding your property search to neighbouring towns and cities. With the right management company, out-of-town multifamily investments can be incredibly lucrative!
Ready to invest in your next property deal?
BuyProperly offers people an opportunity to get into the real estate market using a fractional investing model. This means you can start with as little as $2,500 and see projected annual returns of 10-40%. See a list of their available properties right here.
How to evaluate a multifamily property for sale
Unlike single-family properties, multifamily units tend to be more complex and there are several factors to consider when trying to figure out whether or not to make an offer on that listing!
Here are some important things to keep in mind:
Does the multifamily property you’re considering have 2, 3, or 4 units? How does this fit your goals? Keep in mind, larger properties may come with a larger price tag but they also yield higher returns.
It’s also important to know your local rules and requirements. In some areas, triplexes and quadruplexes must be registered with the city and cooperate with additional yearly inspections. Speak with your local realtor and city officials to learn more.
Cash flow is everything and all potential investors need to have a realistic picture of how much money they can collect every month.
How much rent are tenants currently paying each month? Also, how much rent could you potentially charge based on the condition and location of the property?
Cash flow is obviously incredibly important, but it doesn’t mean much if the operating expenses put you in the red each month!
Make sure to collect information about all the ongoing operating expenses for the property so you can properly calculate your net profit. This includes taxes, utilities, insurance, management, etc. Don’t forget to account for potential vacancies in your calculation (it’s a safe bet to assume a 10% vacancy).
When assessing whether or not to buy your next multifamily, it’s important to carefully consider all upcoming repair costs. Because multifamily buildings tend to be larger than single families and have more units to take care of us, those upfront costs are normally higher.
When purchasing, make sure you have enough money in the bank to make the necessary repairs to keep your new tenants!
Calculating Cap Rate is important because it tells you how quickly you’ll be able to pay off your investment. It’s a quick snapshot of your income and expenses as they relate to the price of your property.
Here’s how to calculate it:
First, find out your gross income (rent) each month and multiply it by 12 to get your number for the year.
Next, subtract all of your operating expenses for the year. This will give you your yearly net operating income.
Gross income – operating expenses = net operating income
Now, divide the net operating income by the total purchase price. Multiply this number by 100 and you’ll have your Cap Rate. The higher the Cap Rate, the higher the annual return on investment, and the quicker you’ll make your money back!
Generally, most investors like to stay above a 4% Cap rate. This varies from person to person and it’s important to consider your personal goals when using Cap Rate to assess a real estate deal.
Location and rental potential
The location of a building plays a crucial role in assessing its’ future cash flow potential. How desirable is the area? Is it near schools, shopping malls, and other city services? How is transportation to and from the location? Are there any plans to develop the surrounding area OR add neighbourhood features that would make the property even more attractive?
Location is everything and it’s an important consideration when buying your next multifamily property!
Conclusion: Should you invest in multifamily properties?
Multifamily real estate is an incredible opportunity for both new and seasoned investors.
These deals can help you grow your portfolio quickly, provide increased cash flow, and reduce your vacancy risk. You’ll also be able to take advantage of some great tax benefits.
But, multifamily isn’t right for everyone. If you’re prepared to handle multiple tenants (or pay a property manager who can) and you’re not scared away by higher operating costs and maintenance fees, you should strongly consider adding a duplex, triplex, or even quadruplex to your portfolio!
How to Become a Real Estate Investor: A Step-by-Step Guide
Are you wondering how to become a real estate investor and start growing your very own property portfolio? We’re diving into the nitty-gritty of what it takes to find your first property deal and build a lucrative real estate investment business.
Real estate investing is on the rise and now is a great time to get into the market. In fact, according to an article in The Globe and Mail, investors account for one-fifth of all home purchases across Canada!
If you’re brand new, investing can feel overwhelming, but there are a few simple steps you can take to set yourself up for success. With a clear plan and the right strategy, being a real estate investor is incredibly exciting, rewarding, and lucrative.
What qualifies you as a real estate investor?
The great news is that you don’t need any special credentials or qualifications to start investing in real estate. Many people choose to get their real estate license so they can get commissions on sales and find private deals, but this is absolutely not mandatory to start finding great property deals.
Even though you don’t need specialized qualifications, it’s important to educate yourself as much as possible on the world of real estate investing so you can become an expert in your field.
Is it hard to become a real estate investor?
Building a lucrative real estate portfolio isn’t incredibly difficult, but it does take time, effort, and patience. New investors should be prepared for a learning curve as they figure out how to navigate the market and build the connections that will help them succeed in the industry.
If you’re brand new to real estate, BuyProperly has opportunities for investors to jump into the property market without tons of money (or risk!).
How? Through fractional real estate investing, BuyProperly offers people the chance to own properties for as little as $2500 with a 10-40% return on investment! Want to learn more?
Now, let’s dive into the six steps you’ll need to follow to become a successful real estate investor.
Step One: Educate yourself about real estate
As a new investor, there is no shortage of concepts, terminology, tricks, and lessons to learn about real estate. The single most important thing you can do is educate yourself.
What are some ways you can learn more about real estate?
Read as many books and articles as you can on the subject
Attend local seminars and meetups to discuss real estate with investors, realtors, and brokers
Find supportive online communities. Sign up for the BuyProperly email list
Your real estate education is an ongoing process that will change and adapt as you become a more confident investor. Be open to meeting new people, making connections, and learning as much as you can!
Step Two: Get crystal clear on your goals
There are many different paths you can take as a real estate investor that depend on what short-term and long-term goals you’re trying to achieve.
The best thing you can do before getting started is to sit down and write out your 1-year, 5-year, and 10-year goals. Remember, real estate should be a long-term investment that not only generates some cash flow, but also appreciates in value the longer you hold onto it.
If you’re looking for instant returns and a quick exit strategy, real estate and rentals is probably not the best investment to start with.
Here are some questions to ask yourself:
– why do you want to become a real estate investor?
– do you want real estate to be a full-time profession or a more “passive” investment strategy?
– what financial goals are you hoping to achieve in the next 1, 5, and 10 years?
– are you prepared to adopt a “buy-and-hold” strategy with your real estate portfolio?
– are you more interested in monthly cash flow or long-term appreciation?
If you’re not in a position to put a 10% or 20% down payment on a property, consider working with partners or starting with a fractional ownership model. At BuyProperly, their investors start with as little as $2500 and see projected annual returns of 10-40%.
If you’re interested in learning more, visit www.buyproperly.ca
Step Three: Nail down a location and property market
Deciding on which location you want to target is an important part of building your real estate portfolio. Are you planning on investing in your local area or would you consider expanding your search to include neighbouring towns and cities?
When looking for areas to invest, focus on locations with job stability, nearby schools, facilities like parks and recreation centres, predictable rents, and opportunities for economic growth. Remember, you’re building up a real estate portfolio for short-term cash flow AND long-term appreciation, so make sure you choose a stable location.
If you’re willing to purchase investments outside your local area, you can often find great deals in smaller cities and various up-and-coming housing markets! At BuyProperly, they help investors across Canada find rental properties through fractional ownership. Investors can be 100% remote.
Step Four: Start building your network
Many real estate investors attribute their success (at least in part) to having an incredible network behind them.
One of the most important things you can do as a new investor is to start making connections with other investors, local realtors, lawyers, and brokers. These people know what’s going on in the housing market and they often have access to insider opportunities before the public finds out!
Not only will this allow you to take advantage of off-market deals and get a leg up on the competition, but you’ll also have the confidence and knowledge you need to make smart financial decisions. Having a great “team” by your side will make the process go more smoothly.
Step Five: Learn how to assess properties for sale
When you’re trying to figure out whether or not to purchase a property, there are many things you should keep in mind.
Here are a few examples to consider:
Income potential: What is the current rental revenue and is there an opportunity to increase that? Are there improvements that could be made to the building? Is the rent lower than the average for the area?
Expenses: What are the ongoing expenses for the property? How much is heat, water, and electricity? What will your insurance costs be? Don’t forget about potential vacancies! When analyzing property income, assume a 10% vacancy rate for the year.
Repairs: Are there any significant one-time repairs that need to be done on the property? How old is the roof and windows? What’s the age of the hot water tank and furnace? Factor in all one-time repair costs when analyzing your budget.
Management fees: How will you be structuring property management? Will you be handling it yourself or hiring a company to collect rent, find tenants, and perform routine maintenance? Factor this into your expenses.
Location: We’ve already talked about the importance of location, but it’s crucial to analyze the location for every single real estate deal you make. In some cities, adjacent neighbourhoods (and even streets) may seem similar, but they actually have significantly different average monthly rents and property appreciation.
Ask your realtor or property broker for more information on how you should analyze rental properties.
Step Six: Dive in and make a deal
It’s true what they say: practice makes perfect. No amount of books or real estate seminars can replace the knowledge you’ll get from jumping in and taking action.
Remember: there’s no such thing as a perfect property. Being a real estate investor means analyzing properties carefully, weighing the pros and cons, and making a decision based on your goals and investment strategy.
Don’t be afraid to get out there and start looking at properties, putting in offers, and making deals.
If you’re ready to invest in your first (or next) rental property, be sure to check out BuyProperly’s available listings here. You can get started for only $2,500.
Artificial Intelligence making Real Estate Investment smarter, simpler.
When Lucy Ainsworth saw that the real estate around her Toronto neighbourhood was booming, she knew that it was the right time to invest. But unlike her parent’s generation, the Senior Tax Associate did not ask a trusted local realtor, she simply went online. This generational change in approach, to seeking investment-related solutions has placed investors at the core of unmeasurable information and data. Thankfully Artificial Intelligence is here to rescue investors from the chaos of detailed analysis on innumerable investment opportunities available online by carefully connecting them to the best deals.
Artificial Intelligence (AI), in simple words, is the ability of a machine to learn and solve problems. AI has simplified the investor’s search process by connecting them to the right opportunities and bringing transparent access to reliable information on market trends, historic prices that were historically only available to agents.
Online real estate listings replaced newspaper advertisements long ago but the continual rise of AI is credited to its ability to process large data, predict trends, transparency, and most importantly ease of access to investors.
Process Data Thanks to the world wide web, a few clicks can show thousands of properties, attend or host virtual tours, review market trends and receive data but that doesn’t necessarily help in making the right decisions. Thankfully, the real estate industry has adapted to the digital era by using Artificial Intelligence to better match investors with opportunities. One might think that the old-fashioned realtors did the same, but platforms like BuyProperly have mastered machine learning and artificial intelligence tools to monitor and evaluate over two hundred thousand data points, that uncover high-value opportunities suited for each investor.
Predict Trends It’s no surprise that real estate data represents a treasure trove of information for a keen investor. Local insights, key market trends, sale prices, demographics and other market data can all be used to browse through listings, but not predict the future of investments. AI has become a game-changer for real estate investing as its predictive real-estate analytics enables stakeholders to make better, more informed decisions when trying to assess property values and rental returns. Smarter AI models predict tenant churn, maintenance issues, building energy requirements, elevator usage in buildings as well as space utilization. This information gives a better idea of potential upcoming costs and issues.
Ms. Ainsworth’s financial planning now includes the returns from a beautiful house in Hamilton. ‘I had been interested in owning investment property for a while, but the barriers to entry felt insurmountable. Enter BuyProperly, the company that makes it possible for “the little guy” to get started. It was so easy to research the properties available on the website, create an account, and buy into the real estate market, and at an entry price point that feels safe. No need to bet the farm on a single investment!’ she said. Read more about the Niagara Falls property here.
Transparency Traditionally, the real estate market has been dominated by brokers, and information about high-yield investments was made available to a select few. Latest AI-powered platforms bridge the gap by aggregating once isolated data, constantly updating information to arm investors with all the information they need. This approach allows websites to better match users to their properties and investment units that are more likely to convert into sales.
Ease of access Investors can now access information on potential rental earnings, net cash flow, expected monthly mortgage payments and decide on whether the return makes sense given the details of the property. Websites like BuyProperly provide free tools which can indicate the potential cash flow/ positive negative from investments in a given property based on past sales, potential rental value, and interest rates. AI models work with the assumption that house prices are a function of both the features of the house and the suitability of the neighbourhood and hence focused on intrinsic value (rather than the market sentiment).
Innovative solutions to Pandemic The impact of AI across industries has been increasing over the past few years, however, Covid-19’s disruption was a crucial flip to the digitization of real estate companies and their use of digital data analytics. With restrictions on travel and physical tours, technology simplified all phases of the process from origination, analysis & due diligence, financing & closing, post-closing rental/ongoing maintenance, and finally to exit through the sale with the investor safe in his own home.
PWC Canada’s 2021 report on the, ‘Emerging trends in Real Estates’ stated that as the business continues to emerge from pandemic restrictions, proptech will offer additional solutions for real estate needs. The report stated that ‘With digitization giving real estate companies access to more data than ever, they have a powerful new tool to help them make important business decisions…data analytics and predictive modeling can help with the determination of optimal asset allocation for mixed-use developments at a high level, as well as provide more detailed insights into the composition of unit mixes for a property.’
Buy Property, Properly Every real estate investment needs to consider a multitude of dynamic factors, but through the power of AI, it is possible to identify emerging trends and uncover opportunities that others don’t see. ‘Thousands of data points and factors are considered over the long term before we consider a real estate valuation using AI. We then physically inspect each nook and corner of the property. Finally, less than 1 percent of the properties get qualified for our marketplace,’ said Khushboo Jha, founder of Buy Properly Canada-based real estate investment firm. BuyProperly’s proprietary AI tracks the markets, monitoring hundreds of economic and regional factors before predicting the profitability.
BuyProperly, Canada based fractional investment company uses AI as its most reliable tool for initial screening and then audits each property. ‘I am often asked how am I confident about the growth of investments, truth is that no human can assess over 150 variables and 200,000 data points for each proposal, but AI can. We merge the predictive power of AI and the experience of our on-site team so that before any product is added to the marketplace, we are certain of its future,’ Jha added.
BuyProperly’s online marketplace shows qualified properties with clear details of fees, charges, risk, and projected returns. Simply choose properties from the marketplace and start investing with as little as $2,500.
How to Invest in Real Estate Without Fear of Rejection
The Canadian real estate market is hot – and you want in. But you know there can be many hoops to jump through before you score the investment property of your dreams. And one of the last, most frustrating hoops is making an offer…only to have it rejected, Unfortunately, that happens a lot.
Reasons for rejection
Putting in an offer on a property that you worked hard to find and having it rejected can be tough to take. Perhaps there was a counteroffer, but a rejection by the seller may catch you by surprise. Why would your offer be rejected? Here are the most common reasons:
1. Your offer was too low
Many sellers would counter a low-ball offer in hopes of driving the price higher. But some sellers may just throw out that low offer altogether, especially if they hear of other buyers willing to go higher. And if your offer was very low, and insulted the seller may be unwilling to entertain it at all.
2. Your finances are weak
These days, sellers want to make sure that prospective buyers are at least pre-approved for a mortgage to finance the purchase. If you haven’t spoken with a mortgage specialist yet, there’s no way for the seller to verify whether or not they’re wasting their time with your offer. Instead, they’ll be much more willing to accept an offer from a buyer whose finances are already in order.
3. Your deposit was too small
While your purchase price is a key component of your offer, the seller will also consider the size of your deposit. A large deposit shows the seller that you are financially strong: capable of supporting a home purchase. A small deposit looks weak and could scare off the seller.
4. Your closing dates don’t line up
Matching closing dates help smooth real estate transactions. For instance, sellers who have already bought a new property may want a short closing date so they’re not stuck with two mortgages. Or perhaps the seller has yet to find another home and doesn’t want to risk having anywhere to go. In this case, the seller may want a longer closing date. Either way, if your proposed closing date doesn’t align with the seller’s needs, your offer may be rejected.
5. The seller maybe unwilling to compromise
If the home inspection reveals issues with the property, you may request to have the seller make repairs. But if the seller is unwilling to put in any more work on the home before selling and you can’t reach a compromise, your offer may be rejected.
Aside from the outright rejection of your offer, there are other difficulties that you can encounter in a competitive market, such as bidding wars. But the biggest hurdle to investing in real estate is money. These days, real estate prices are through the roof, especially in certain cities. Many would-be investors simply don’t have the financial means to get started, especially if they are buying a property on their own.
Fortunately, there are other ways to get a foot in the door – even with minimal capital – including “fractional” investing.
Fractional investing in real estate
In fractional investing, several parties purchase the property: each has its own share and each assumes its share of the risk. For instance, if a property sells for $500,000 and you put in $10,000, you own 2% of that property.
Unlike full ownership, fractional ownership allows investors to diversify their portfolios, reducing risk while getting access to high-value assets. It also eliminates many of the hassles: searching for properties, putting in offers, managing tenants, and maintaining the property.
Who offers fractional investment?
Fractional investing reduces the barriers to entry for investors just starting out in the real estate market. But where can you find these investment opportunities?
BuyProperly is an online platform for fractional real estate ownership: it gives investors with limited capital – as little as $2,500 – the chance to buy into a property without the headaches that usually come with being a landlord.
The expert team at BuyProperly thoroughly vets the high-value, high-growth, buy-to-let properties available for investment. And BuyProperly’s local property managers handle “landlording,” hassles: maintenance, improvements, tenant searches, rent collection…..
Investors can earn monthly rental dividends while watching the property value grow over time. If or when the property is eventually sold, all the investors can capitalize on the increase in equity.
Benefits of fractional ownership
There are plenty of reasons why investors — particularly beginners with minimal capital or experience — might want to go the fractional investment route:
Minimum capital needed. Traditional real estate deals require tens of thousands of dollars (or more); fractional investing requires as little as a couple of thousand dollars to get started.
Increased diversification. Adding a real estate property to your investment portfolio is a great way to help you hedge against risk.
High return potential. Real estate is known to increase in value over time: this can help increase your returns, especially as renters help pay the mortgage.
Asset tangibility. Unlike stocks, real estate is a real-world asset, which can offer both growth potential and intrinsic value.
Tax breaks. When the property is eventually sold, you’ll get taxed only on capital gains, rather than having your entire return taxed as income.
How do you earn returns with fractional ownership?
Like any other type of real estate investment, fractional ownership pays out in two ways:
Through rental income. Depending on how much you invest and your exact share in the property, you’ll collect rental income relative to your share.
Profit when the property is sold. Over time, the property will likely increase in value, which helps add to your equity in it. You’ll be able to recover your initial investment, plus your share of any profits.
Should you invest with BuyProperly?
If you’re interested in investing in real estate but haven’t yet, because of done so because of all the hurdles, BuyProperly may offer a solution.
In particular, BuyProperly may be an ideal investment platform for those who:
Want to invest a modest amount of money
Want to avoid managing the property and dealing with tenants
Want to diversify their investment portfolio
Want help choosing the right property to invest in
Our final thoughts
There are plenty of benefits to investing in real estate: passive income, regular cash flow, tangible assets that grow in value, investment diversification, and tax advantages. But getting involved in real estate investment can be tough for many. BuyProperly makes getting your foot in the door is much easier. You can start investing with as little as $2,500 and see potential annual returns of 10–40%. And you can kiss that fear of rejection goodbye.