FAQ
FAQ
Frequently Asked Questions
- Cash flow – By having an intricate understanding of income and expenses for the properties we invest in, we are able to provide for a steady stream of cashflow.
- Mortgage pay down – our renters pay down our mortgage over time.
- Passive Appreciation – through the power of leverage a 3% passive appreciation can return $180K per year on an initial upfront investment of ~$900K on a $6M property.
- Active Appreciation – There is an opportunity to increase the value of our properties by improving on the current property (land lift).
- Government Rebate Programs – By understanding the ins & outs of current Government rebate programs we are able to significantly increase investor returns and have a built in contingency fund. This decreases the required upfront investor capital while improving returns and decreasing risk.
- 22+ combined years of real estate investing
- Specialization in Multi-family real estate investing in Edmonton
- Thorough understanding of local market dynamics and risk mitigation
- The knowledge and expertise needed to optimize the “5 ways to win”.
- ~$28M in assets under management.
- Edmonton’s River Valley is 22 times the size of New York’s Central Park!
- Edmonton is Festival City with over 50 festivals hosted annually
- No land transfer tax
- No PST
- Landlord-friendly laws
- No rent control
- Top Ten Towns in Canada to invest (REIN)
- The city of Edmonton is expected to double in population to 2 million people by 2065 or sooner.
- Currently, there are $44 billion in projects under construction in the city and surrounding area, including $19 billion TELUS Telecommunication upgrades and $11.6 billion in Dow Chemical expansion in nearby Fort Saskatchewan
- As Don Campbell has taught, when larger cities start to have a boom (Edmonton), surrounding cities often follow suit.
- Taking advantage of this knowledge allows us to acquire properties in markets (Leduc) at a lower price point with an anticipated catch up in appreciation.
- Leduc has a population of roughly 33,000 and was voted the 6th friendliest community in Canada! Located minutes away from the Edmonton International Airport, and only a 15 minute drive to south Edmonton, Leduc has a small town feel coupled with convenience, community, and opportunity.
- Leduc is a vibrant and growing city that features:
- A state-of-the-art Recreation Centre
- Leduc Transit system
- Premium Outlet Mall
- Maclab Performing Arts Centre
- With the rapid growth in Alberta, housing in general is in great demand.
- 25%+ of our units are reserved for affordable
- In a recent Leduc Housing Needs Assessment, “…there is a significant uptick in demand for townhomes…”
Alberta New Home Warranty Program
(lowering the cost of ownership and increasing investor returns with lower risk)
- CMHC MLI
- Up to 95% Loan to Value.
- Up to 50-year amortization.
- Lower Interest rate than conventional loans.
- Lower CMHC premiums than regular programs.
- Real estate investing is not a get rich quick scheme.
- Targeted investor returns of ~15%+ are a factor of:
- A: Short term returns
- Land Lift (Active Appreciation)
- Government rebate (5%)
- B: Long term returns
- Mortgage pay-down
- Passive Appreciation
- Cashflow
- A: Short term returns
- At time of sale, initial investor capital is returned to investors first and foremost.
- On sale of the property, Grand Slam Capital only receive distributions after investors have their initial capital returned (i.e. when there is a profit).
- Returns above initial invested capital are distributed based on proportion of initial invested capital.
- Annually, full financial report
- Quarterly investor updates (February, May, August and November) including property performance, & other interesting information.
- Biannual cashflows distribution (May and November).
After initial term (5 to 10 years*):
- Sell property and dissolve the
- Sell the corporation that owns the property (less likely).
- Refinance or renew for another **
- Option to hold property for long-term
*These types of investments are usually held for ~10 years in order to take full advantage of the “5-Ways to Win” with real estate investing and to increase investor returns.
** Refinancing allows an option to pull out accumulated equity (due to mortgage pay down and passive appreciation) to repay investor principle (tax free) while still maintaining a cash flowing property!
- Purpose-Built Rental Housing Rebate Program
- MLI Select Expertise – lower cost of ownership
- New Homes – lower expenses
- Manage the Managers
- Expense tracking & Service Provider Monitoring
- Effective tenant selection
- Monitoring & adjusting rent rates
- Project Oversight during development
- Corporate structure set-up (asset protection and tax minimization)
To sign up to learn about the exciting opportunities that Grand Slam Capital has to offer and to receive the free “27-Questions to Ask” for Any Passive Real Estate Investor, just click the following link: 27-Questions to Ask
