Investing in Real Property

Investing in real property involves the acquistion and management of real estate to generate revenue and earn a profit.    Revenue is generated through cash flow from rents, leases and realized capital gains upon disposal (sale).

 

Many investors have a desire to invest in real properties, such as commercial, industrial and residential buildings. Unfortunately, many do not have the financial resources to invest on their own, or do not have the experience or expertise to successfully create value from real estate investing.

 

By pooling their financial resources, and investing in a fund managed by an experienced team,  investors can invest in commercial, industrial and residential properites. A Private Real Estate Investment Trust (REIT) is an option that offers investors a simplified way to participate in the cash flow and potential capital appreciation of real properties.

 

An experienced team can:

  • Identify the right location to acquire specific properites
  • Identify distressed properties where access to liquidity (cash) is seller's main priority
  • Negotiate favourable purchase terms
  • Ensure Due Diligence is thorough, accurate and complete

 

A private REIT offers an investor the benefits of diversification, liquidity, cash flow and long term growth potential.

 

 

How is Cash Flow generated from real properties?

 

Net Operating Income (NOI): Rents, leases and other income generated by a property, less operating expenses, such as maintenance, utilities, fees and taxes. A common standard in assessing the profitability of a specific property is the ratio of NOI to the asset price. This is known as capitalization (cap) rate. The cap rate, expressed as a percentage, can be used to compare similar properties with similar risk profiles. Although not exclusive, the cap rate is one component in selecting the most profitable properties.

 

 

Capital appreciation: Real properties have the potential to increase in market value over time. When property is sold, a capital gain may be realized. The sale transaction normally results in net positive cash flow (after expenses and reduction of any outstanding debt or liens). There is no guarantee that capital appreciation will occur. Poor timing, or buying overpriced properties may result in a capital loss.

 

 

 

This is not intended to be an offering of securities. Offerings in Sincerus projects are made only to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements pursuant to NI 45-106. The risks of investing are outlined and detailed in the form of an offering memorandum prescribed by NI 45-106 and you should review the offering memorandum in detail prior to investing. Investments are not guaranteed or insured and the value of units may fluctuate. See the applicable offering memorandum for complete details.