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!

Alternative Investments: 10 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, cryptocurrencies, 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!

10 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.

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.

crypto

Cryptocurrencies are a new and exciting alternative investment. These digital currencies have seen a huge increase in value in recent years, and there is potential for even more growth in the future.

Cryptoassets, such as Bitcoin and Ethereum, have gained popularity in recent years as alternative investments. Cryptocurrencies are digital assets that use cryptography to secure their transactions and they can be bought and sold on exchanges and can also be used to purchase goods and services.

One of the biggest benefits of crypto is that there is no barrier to entry. You can get started with as little (or as much!) as you want.

Cryptocurrencies can be risky and extremely volatile, so it’s important to do your research before investing.

nfts

NFTs are a type of digital asset that is stored on a blockchain. They are unique and cannot be duplicated, which makes them valuable. NFTs can be used to represent a wide range of assets, such as digital art, land, or even cryptocurrencies.

Some well-known examples include CryptoKitties and Decentraland.

Wondering how profitable NFTs can be? In December 2021, a piece called “The Merge” sold for a whopping 91.8 million dollars!

NFTs have the potential to be incredibly lucrative, but they can also be a volatile and risky investment. It’s important to do your research before investing.

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.

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. >>

What Is Collateral?

what is collateral?

Collateral is a term used to describe an asset that a lender accepts as security for a loan. Depending on the purpose of the loan, collateral can be real estate or other types of assets. For the lender, the collateral serves as a type of insurance. If the borrower defaults on their loan payments, the lender can seize and sell the collateral to recoup some or all of their losses.

how collateral works

A lender wants to ensure that you’ll be able to repay the loan before giving it to you. As a result, many of them require some level of protection. Collateral is a type of security that reduces the risk for lenders and ensures that the borrower fulfills their financial obligations. If the borrower defaults, then the lender has the option to seize the collateral and sell it, with the proceeds going toward the unpaid amount of the loan. To reclaim any leftover balance, the lender can take legal action against the borrower. 

As previously stated, collateral can take many forms. It usually refers to the type of loan; for example, a mortgage is secured by the residence, but a car loan is secured by the vehicle in issue. Other assets can be used to secure non-specific personal loans. For example, a secured credit card can require a cash deposit equal to the credit limit, such as $500 for a $500 credit limit.

Collateral-backed loans often have lower interest rates than unsecured loans. A lien is a legal right or claim on an asset to satisfy a debt that a lender has on the collateral of a borrower. The borrower has a powerful incentive to repay the loan on time because, if they don’t, they risk losing their home or other collateralized assets.

types of collateral

The type of loan frequently determines the nature of the collateral. Your home becomes the collateral when you take out a mortgage. If you take out a car loan, the car becomes the loan’s collateral. Cars, bank savings deposits, and investment accounts are all frequent forms of collateral that lenders accept. In most cases, retirement accounts are not accepted as collateral.

Future paychecks can also be used as security for very short-term loans, not just payday loans. Traditional banks provide such loans, which are typically for a few weeks. Even if you have a true emergency, you should read the fine print and compare rates before taking out one of these short-term loans.

COLLATERALIZED PERSONAL LOANS

A collateralized personal loan is a type of borrowing in which the borrower pledges an object of value as security for the loan. The collateral must be worth at least as much as the loan amount. If you’re looking for a secured personal loan, your best bet is to go with a financial institution with which you already do business, especially if your collateral is your savings account. If you already have a relationship with the bank, it will be more likely to approve the loan and provide you with a reasonable interest rate.

Examples of collateral loans

RESIDENTIAL MORTGAGES
A mortgage is a loan that uses your home as collateral. If a homeowner fails to pay their mortgage for more than 120 days, the loan company can initiate legal action, which could result in the lender taking possession of the home through foreclosure. The property might be sold to satisfy the remaining principal on the loan once it has been transferred to the lender.
HOME EQUITY LOANS
A home can also be used to secure a second mortgage or a home equity line of credit (HELOC). The loan amount will not exceed the available equity in this scenario. For example, if a home is worth $200,000 and the primary mortgage balance is $125,000, a second mortgage or HELOC will only be available for up to $75,000.
MARGIN TRADING
Margin trading also considers securitized loans. An investor uses the balance in his or her brokerage account as collateral to borrow money from a broker to gain shares. The loan increases the number of shares an investor can purchase, hence boosting the potential gains if the value of the shares rises. However, the risks are amplified as well. If the value of the shares drops, the broker will demand payment of the difference. If the borrower fails to cover the loss, the account acts as collateral.

While stock market trading may be dangerous, and real estate investing can be time-consuming, Buy Properly combines the best of both worlds. Buy Properly, a fractional real estate company, lets anyone with just $2,500 participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Interested? We knew you would be. Check out our latest opportunity – the Karma Candy Building – on Buy Properly (limited availability, don’t wait to invest!).

What is an Accredited Investor?

FIRST THINGS FIRST, WHY ACCREDITED INVESTING?

Accredited investing opens up a whole shiny new world of investing made available to you. These include private equity, venture capital, angel investing, and hedge funding.  

WHAT IS AN ACCREDITED INVESTOR?

The accredited investor is someone who has a special status so that they can have investments that are typically more high-risk. While this definition varies from country to country, it also varies from province to province. While there’s no formal process in Ontario, legislation requires that you meet specific criteria to participate in certain investments. This simply means you’ll need to be prepared to provide documentation proving you meet the criteria.

THE CRITERIA

 According to the Ontario Securities Commission (OSC), an accredited investor means you have a:

  • Net income before taxes of more than $200,000 in each of the two most recent calendar years and expected net income of more than $200,000 in the current calendar year.
  • Net income before taxes combined with a spouse of more than $300,000 in each of the two most recent calendar years and expected combined net income of more than $300,000 in the current calendar year.
  • Financial assets, alone or with a spouse, of at least $1 million before taxes but net of related liabilities
  • Financial assets include cash and bank deposits but not the value of a house.
  • Net assets, alone or with a spouse of at least $5 million. Net assets generally include all of your assets after subtracting your debt.

Contact the OSC’s Inquiries & Contact Centre to learn more about these rules.

Are you an accredited investor?

Plage Saint-Pierre Beach & Campground

Now you can invest in oceanfront real estate with as little as $1,000

Co-own a Nova Scotia beach destination through FrontFundr with Forge & Foster

Soaring real estate prices have locked many Canadians out of the market — and the wealth gains that come with ownership.

“For too long, real estate has been behind closed doors and not accessible to everyone,” says Joe Accardi, Partner & CEO of Forge & Foster. “We want to bring real estate to all Canadians, and FrontFundr is something that we’re really excited about.”

 

WHAT IS FRONTFUNDR?

FrontFundr is Canada’s leading online private markets investing platform and an exempt market dealer. 

Founded in Vancouver in 2013, the startup’s mission is to democratize the private sector investment model by offering companies an alternative to venture and private equity investing.

FrontFundr provides investors with the opportunity to invest in startups and growth companies. Their online platform allows all Canadians — from professionals to first-time investors —to support the ideas and initiatives they want to see succeed. 

 

 

The company has built up a community of over 34,000 users, run over 100 successful funding campaigns, and helped businesses raise more than $120 million so far.

“You might think you can only invest in Wealthsimple and public stocks, but you can also invest in early stage companies from the very beginning.”

“We’re missionaries to spread the word around equity crowdfunding, in general,” says Peter-Paul Van Hoeken, the founder and CEO of Silver Maple Ventures, FrontFundr’s parent company. “Creating awareness has been a huge job for our company in the last five years. You might think you can only invest in Wealthsimple and public stocks, but you can also invest in early stage companies from the very beginning.”

 

TELL ME ABOUT THE PROPERTY

The Plage Saint-Pierre Beach and Campground in Cheticamp, Nova Scotia, sits on 2,500 feet of private beach along one of the province’s warmest bays.

The nearby Cabot Cape Breton Golf Club is a popular destination. Visitors also enjoy hiking, whale watching, berry picking, stargazing, kayaking, cycling, dining on fresh seafood and more.

The popular destination boasts quaint cabins, RV rentals, and sites for tents and RVs. However, there is plenty of opportunity for improvement and expansion.

Situated at the gateway of the world-famous Cape Breton Highlands National Park and just off the Cabot Trail, this real estate investment property is packed with potential. And Forge & Foster is ready to unlock that potential through its unparalleled expertise in real estate management. 

“Never before have people had the opportunity to invest in spectacular real estate like this, starting at just $1,000.”

Joe Accardi, Partner and CEO at Forge & Foster Investment Management, said, “This is a very special opportunity for investors and we’re excited to offer it through our trusted partner, FrontFundr. Never before have people had the opportunity to invest in spectacular real estate like this, starting at just $1,000.”

WHY FRONTFUNDR? 

Here are the main benefits of investing in real estate through FrontFundr:

  • No fees
  • Pride of ownership
  • No need to qualify for a mortgage
  • No down payment required
  • None of the pain of managing a property
  • 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
  • You’ll receive ongoing oversight and support
  • Every investment project undergoes a detailed due diligence process

“Join FrontFundr. Take a look at their projects. You can invest in a project that you’re excited about,” says Accardi.

⭐⭐⭐⭐⭐
Great platform to invest in early stage enterprise
The investment process was straightforward and well explained.
Jean-Philippe Deblois, Trust Pilot

⭐⭐⭐⭐⭐
Great platform that is intuitive and easy to use!
Good access to detailed prospectus and pitch info. The digital signing process is simple and efficient. Private company investing has never been this easy or accessible.
Ken Smith, Trust Pilot

⭐⭐⭐⭐⭐
I feel fully confident that I am making sound investment decisions for myself. FrontFundr is an essential platform to democratize investing into early stage companies that have huge potential to add value.
— Leon Lie, Trust Pilot

 

WHAT ARE THE EXPERTS SAYING?

“Small investments in multiple projects add up over time. That makes it appealing for young people who want to get in the habit of investing.”

“I feel that real estate crowdfunding can be a viable tool for those who want to invest in real estate but are restricted due to a lack of money or credit,” says Mark Ting, CBC’s finance columnist. “Small investments in multiple projects add up over time. That makes it appealing for young people who want to get in the habit of investing.”

“A crowdfunded model comes with transparency and tangibility,” Tina Tehranchian, an Assante Capital Management Ltd. senior wealth adviser told the Globe and Mail. “You can drive by the property and boast to your friends that you have a share of ownership of this property.”

HOW DO I JOIN?

Sign up for FrontFundr now — there’s no fee to join!

Plage Saint-Pierre Beach & Campground is currently raising $595,000. Details of the offering can be found at frontfundr.com/forgeandfoster


Screen shot of FrontFundr website


To book a stay at Plage Saint-Pierre Beach & Campground, visit plagestpierre.com or contact plagesaintpierre@gmail.com or (902) 224-2112.

 

A selection of luxury watches

Grow Your Wealth While Managing The Risks With Diversification

Every investment carries some amount of risk. Since markets can be volatile and unpredictable, diversifying your portfolio helps maximize returns over the long term as well as better protect yourself against unexpected market downturns.

This article will talk about what diversification is, its importance, and how you can diversify your investment portfolio. Moreover, we will also shed some light on the benefits of illiquidity and how real estate investments can help you enhance your returns.

Let’s get started!

Diversification: Why It’s Crucial for Your Portfolio?

Diversification is the most crucial step in risk management. It is the investment technique of holding unrelated investments across asset classes that react differently to social and economic events.

Diversification is a technique that is crucial for investors to reach their long-term goals as it enables them to hedge against unsystematic risk and build wealth over a period across different asset classes. Using diversification, an intelligent investor reduces the risk by planning carefully and allocating funds across various asset classes.

For instance, in a growing economy, stocks generally outperform bonds. However, when market conditions change, bonds hold their value, whereas stock prices tumble. Thus, if a smart investor diversifies their investment portfolio and holds both stocks and bonds, they can reduce their overall exposure to such change in market conditions and mitigate the risks of their portfolio taking a big hit.

Investment Portfolio Diversification: How to Achieve it?

An investor can diversify their portfolio by using the asset allocation strategy, which involves selecting a combination of investments based on the investors’ risk profile, financial goals, and time horizon.

Each asset class available to investors have different risk-reward ratios, and thus, each performs differently in varying market conditions. For instance, while stocks are more volatile and risky in comparison to bonds, they also offer the potential for higher returns.

Some of the standard asset allocation classes include the following:

  • Equities (Stocks and ETFs)
  • Fixed Income Bonds
  • Real Estate
  • Gold
  • Cryptocurrency
  • Collectables
  • Cash and cash equivalents

Diversified Portfolio Example

Source: Cary Stamp & Co.

While diversification is essential, it’s equally important not to over diversify. The best way for an investor to do so is to keep their portfolio at a manageable level that varies for each investor based on their financial goals and risk profiles. For instance, avoiding diversification for some investors could mean only holding six assets in different industries that they are confident about. Whereas, for others, it could mean avoiding investment in certain asset classes that they don’t understand, just for the sake of diversification.

The Benefits of Illiquidity

Liquidity refers to the ease with which an asset can be converted to cash and cash equivalents without losing market value. In general, it is seen that liquid assets such as stocks are more volatile in nature. Thus, to capture the benefits of illiquidity, long-term investors may prefer allocating funds towards illiquid assets.

Typically, illiquid assets have a low correlation to the broader stock market, and thus, they are less volatile in nature, and their value remains stable over a more extended period. As a result, such investments are considered low beta investments that are less risky but offer lower returns. As a result, such investments help minimize portfolio losses when the market sees a downturn.

How to Enhance Portfolio Diversification Using Real Estate

Real Estate Investment is the process of purchasing property to either rent it out or sell it to make a profit. As an asset class, real estate is mainly used for diversification purposes and has helped investors amass generational wealth.

Diversifying your portfolio by investing in real estate offers the following benefits:

  • Long-term stability – Real estate market is seen as one of the most stable financial markets. Thus, real estate investment is considered to be a less volatile and stable long-term investment opportunity.
  • Usability – Real estate is a tangible asset that investors can use for renting out or for personal use. For example, real estate bought for diversification purposes can be rented out and used to generate additional income.
  • Mitigating Risks – Real estate is an illiquid asset and thus, is not highly correlated to the stock market. Hence, many investors use real estate to hedge their risks against more volatile assets in their portfolios.
  • Tax Benefits –  Governments in many countries offer tax benefits on real estate investment to promote the sale of properties in the country and boost the economy.

Additionally, there are many different ways through which investors can invest in real estate. They are as follows:

  • Real Estate Investment Trusts (REITs) – REITs enable investors to invest in real estate even with small amounts of money. Shares of REIT stocks can be bought and sold in the market just like any other publicly listed company.
  • Crowdfunding Real Estate Platforms – These online platforms let investors take a more hands-on approach and invest in specific real estate development projects.
  • Investing in Rental Properties – Purchasing rental properties enables investors to add an alternative source of cash flow and earn some additional monthly income.

Important Questions to Ask About Your Portfolio Diversification

To diversify your portfolio successfully, an investor first needs to understand the fundamentals of diversification and ask the right questions to evaluate how these fundamentals apply to their specific portfolio.

Here are some critical questions about your portfolio diversification to evaluate your diversification strategy and make more informed choices.

  1. What is my risk tolerance? – This changes according to investment objectives and time horizon. Each asset class has different risks. Hence, investors must choose an asset class that is suitable to their risk tolerance.
  2. What is my risk-adjusted rate of return? – This question answers how well you are being compensated for the amount of risk you’re taking.
  3. How many asset classes should I invest in? – While diversifying your portfolio, it’s important to look for a wide range of asset classes.

Closing Thoughts

As an investor, to achieve your long-term financial goals, you need to balance your risk and reward. Diversification allows you to choose a mix of assets that reduce the risk of losses in the market. Thus, it’s essential to find the right balance between risk and return and select a mix of assets that can help you achieve your financial goals while limiting your exposure to unsystematic risks.

The Pros and Cons of Investing in Single-Family Homes

The Pros and Cons of Investing in Single-Family Homes

There is no doubt that investing in real estate is a smart move for anyone looking to secure their financial future. But when it comes to building a lucrative real estate portfolio, there are a few different options to choose from.

One of the most popular choices is investing in single-family homes. In this article, we will take a look at the pros and cons of investing in single-family homes to help you decide if this is the right type of investment for you.

First, let’s define the main types of residential investments:

Single-family: A property that has one available dwelling to rent.

Duplex: A property that has two available dwellings to rent.

Multi-family: A property that has three or more available dwellings to rent.

Let’s start by looking at all the pros of investing in single-family homes.

 

High Returns

 

Single-family homes are a great choice if you’re looking for steady appreciation with a good return on investment.

In most cases, you can expect to make around 12% on your investment each year. Don’t forget, you’ll have maintenance and operating expenses and potentially regular mortgage payments as well, which we’ll discuss in a moment.

That’s a pretty good chunk of change. And remember, investing in real estate isn’t just about getting rich quick — it’s about investing for the future.

If you plan on holding on to these properties indefinitely, then single-family homes are a great choice because they tend to appreciate quickly over time.

For instance, if you buy a property today for $100,000 and sell it 20 years from now for $200,000 then that’s an average of 12% appreciation per year.

If you held on to your investment property indefinitely, the value would continue to increase at this rate while other investment options (like stocks) might plateau.

Easier to Get Started

 

Another pro of investing in single-family homes is that it is a very easy way to get started. Unlike multi-family homes that may require hundreds of thousands of dollars to buy, single family homes are less expensive and therefore easier to acquire.

You don’t need a lot of money to start building your real estate portfolio and you can begin to see returns pretty quickly.

But perhaps you don’t have enough for the mortgage down payment. If that’s the case, then you could consider the opportunity to invest in a fractional share of a property. At BuyProperly, they help investors like you get started in real estate investing for as little as $2,500. Learn more here.

Stable and Secure

 

The market for single-family homes is always growing. Even if the economy takes a turn for the worse, you can still expect to make money off of your investment. Unlike investing in stocks or other forms of investments, real estate is something that normally retains its value no matter what the market is doing.

Maintenance and Repair Costs

 

A big benefit of single-family investing is that repair and maintenance costs are often lower than what you would pay with larger buildings.

Instead of having multiple units to look after, investing in single-family homes means you only have one unit  to worry about. Plus, you can often do the repairs yourself to save even more money.

More Control

 

Investing in single-family homes gives you more control over your investments.

For example, if you buy a single-family home and then decide that investing isn’t right for you anymore, you can sell it at any time. You have more control over the investment and how long to continue investing. Plus, since they appreciate quickly over time with little upkeep required from an investor point of view, this means less stress when investing.

Less Risk

 

Single-family homes are a great way to get started in real estate investing without taking on too much risk.

The market for single-family homes is always growing, so if your investment doesn’t go as planned, you can still sell it down the road and make most of your money back.

Easier to Manage

 

Another pro of investing in a single-family home is that it is much easier to manage than a larger property. It’s often easier to find a property management company and the fees are substantially less than you would pay with a larger building. You also don’t have to worry about hiring and managing staff, which can be a big hassle.

Less turnover

 

Single-family rentals tend to have long-term tenants with less turnover than lower-priced units in a multi-family building.  Long-term tenants are more stable and will pay their rent on time, which means less stress for you.

Multiple vacancies can become an issue with larger properties and can really eat into your profits.

Diversification

 

Because single-family homes are less expensive than large buildings, it’s easier to continue to invest and add more homes to your real estate portfolio. That means you can diversify and reduce the risk of sudden vacancies and non-paying tenants.

As you can see, there are several pros to investing in single-family real estate. But, like any investment, it doesn’t come without some risk.

Cons of Investing in Single-Family Homes

Now that you have a good idea of the many benefits of investing in single-family homes, let’s take a look at some of the cons of this type of real estate investment.

Sourcing Deals

 

The main con of investing in single-family homes is that it can be difficult to find good deals. Because this is such a popular choice, the competition is fierce. So you need to be prepared to do some digging and put in some work if you want to make a profit.

Takes time to generate a return

 

With single family homes, it can take a while to see a return on your investment. It’s not uncommon for it to take at least five years before you start seeing any real profits.

Remember that although you’re always able to collect rental income on your investment, much of the benefit in single-family home investing comes through the capital appreciation over time.

Flip & Sell Risks

 

“Flipping” houses (buying and selling them quickly for a profit) can be risky.  If you’re not careful, you could end up losing money on a flip.

Another con to flipping is that it’s often difficult to find good deals – the same issue we mentioned before. Plus, if the market takes a downturn, you could end up losing money on the sale.

Vacancy rates

 

Unlike multi-family home investing with several units to generate income, single-family home investing means you’re buying only one unit to rent. If a tenant doesn’t pay the rent or leaves the property, you could suddenly find yourself with a 100% vacancy rate, which can significantly eat into your return on investment.

Management

 

Another downside is that it can take a lot of time and effort to manage all of the different aspects of owning and managing multiple single-family homes. Two or three properties can be extremely easy, whereas 10, 15, or even 20 single-family homes can mean a lot of traveling for your management company!

If you are planning on managing the property yourself, you’ll also need to be within a reasonable commuting time to this property to deal with any issues.

Less Leverage

 

Lastly, investing in a single-family home usually doesn’t provide as much leverage as investing in a larger property.

In the real estate investing world, leverage means using other people’s money to fund your investment.

For example, with single-family investing, you may only be able to get a loan for 50% or 60% of the purchase price. Whereas with investing in a larger property, you may be able to get a loan for up to 80% or even 90%.

This is because investing in larger buildings means investing more money, and investing more money means investing more risk.

The bank doesn’t want to be stuck with all the risk if something goes wrong. So they’re more likely to loan you money when you’re investing in a larger property.

This means you can’t make as much money on your investment if it goes up in value.

Are single-family homes the right investment for you?

 

It all depends on your goals and what you’re looking for in an investment. If you’re prepared to do some work sourcing good deals, investing in a single-family home can be a great way to get started in real estate investing. They are stable and secure, have lower maintenance costs, and are easier to manage than larger properties.

However, keep in mind that it can take a while to see a return on your investment. So if you’re looking for something that will generate income quickly, single-family homes may not be the best option for you.

Conclusion

 

Overall, investing in single-family homes is a great way to secure your financial future. It is a stable investment that has the potential to make you a lot of money over time. However, it is important to remember that there are some risks involved, and it does take some effort to manage everything.

If you are willing to take on these challenges, then investing in single-family homes is definitely something you should consider.

Looking for your first (or next) real estate investment? At BuyProperly, they use advanced AI technology to help match investors with lucrative investment opportunities. They use a fractional ownership model so you can get started for as little as $2,500 (and see projected annual returns of 10-40%).  With this approach, BuyProperly makes it easy to invest in multiple properties and locations to diversify your investment portfolio and build your wealth! Want to learn more? Visit BuyProperly.

Artificial Intelligence making Real Estate Investment smarter, simpler.

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.

A booming real estate market and a thriving tech ecosystem have poised Canada to be a hub for real estate innovation where Artificial Intelligence led opportunities to guide investors as they build their portfolios. 

 

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.

New tools can combine a company’s data with third-party sources to gain insights into new strategies for existing properties or portfolios or identify additional markets or locations for investment opportunities.

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.

Are you an accredited investor?