What type of real estate
Multifamily properties provide an excellent investment opportunity with multiple exit strategies to provide safety in the investment. We expect to purchase two to three properties with a total of eighty to one hundred units. This is enough to enable management costs to be well controlled and efficiencies of scale to be favourable. Ideally we will find properties that we can upgrade and reposition in the market, permitting a solid increase in value to our Investors.
Where will you invest & Why?
We will be looking primarily at the greater Edmonton region for investing. With a combination of excellent economic fundamentals and good in-migration to the area, the indications are that this is a premium area to invest. It is also the area we can be most involved in the management of the property and the market we are thoroughly familiar with.
Why not invest in the USA where Real Estate is so cheap?
While we could do that, it takes more than cheap property to make a good investment. Generally property is cheap when no one wants it, and probably for a reason.
Is this investment guaranteed?
Why invest with you?
As a team we have over forty years of investing experience. Has every investment been picture perfect – of course not. We learned by doing and our success ratios are good and we have never missed a commitment to a lender. Perhaps the biggest reason to invest with us is that we recognize the economic realities of our time and space. Alberta is well positioned to be an economic powerhouse for some time, BUT a broken world economy will still impact it. We have taken this into account in how we are structuring and investing. We will NOT aggressively leverage (borrow against) property. We will maintain comfortable margins of safety in all that we do so an economic downturn, while it may reduce profits, will not capsize the investment.
Is this RSP and TFSA eligible?
How can you use money from my RSP, TFSA?
Such funds need to be transferred to a self directed fund with Olympia Trust. Olympia Trust, acting on your directions will invest the funds in Exces Properties Inc.
Does my investment have to come from RSP / TFSA funds?
NO! While we are structured to be able to receive registered funds, we are also able to accept non registered funds.
All such funds will be paid directly to Parlee McLaws LLP, in trust.
How long will my money be tied up?
The term of the investment expires December 31, 2020 and there is no guarantee that funds can be withdrawn prior to that time. In the event of an emergency for the Investor, we will do what we can to work with them, but there is no guarantee of liquidity and the viability of the overall portfolio will take precedence. We will be working diligently to provide a return that will convince Investors that even after the initial term is up they should remain invested with us. This is fully intended to be a very long term investment.
What’s the minimum investment?
What rate of return can I expect?
We definitely have targets we would like to achieve BUT we are unable to predict many things that will impact the returns available to Investors. Past performance is no guarantee of future outcomes, but our management team has consistently achieved double digit annual returns in the past. Keep in mind that the Founders of Exces Properties Inc. will receive no compensation until the Investors exceed the basic 4% return.
Why can’t you tell me what property is being purchased?
We believe in profiting with our Investors, not at their expense. In order to insure there are no questions about fair value of property purchased, we will wait to make those purchases directly from the investment pool. Some Investment companies profit by pre-purchasing the properties and then selling them into the investment pool at an inflated price. That will not happen here.
How frequently will Investor pay outs be made?
Payouts will happen at least quarterly with more frequent payouts available based on a minimum payout amount of $100.00 per period. NOTE: Payouts are contingent upon Exces Properties determining that sufficient funds are available for distribution without harming the investment.
Others say that a set percentage of the profits will be paid to the Investors. Why is this program more complicated and what does it mean to me?
Because we are using a “Participating Bond” and because we have structured the Investment in such a way as to insure Investors get preferential treatment on payouts – the system is a little more complex. When someone says that 70% of distributable profits will go to the Investors, that means the other 30% will go to the Founders, beginning usually with the first dollar of profit.
Because of our unique structure the Investors receive 100% of the distributable profits until they have achieved a 4% return on their investment. Then, and only then do the Founders of Exces Properties Inc. Begin to participate in the profits.
When you speak of a “referral Program”, what is that?
This is a fee available to anyone referring an Investor us to who chooses to invest with us. Up to 2% of the investment can be paid for the referral. If you like what you see, refer your friends to us and we will be pleased to reward you appropriately.