Inflation: Is it good or bad for real estate? How do you protect yourself from it? The value of a dollar 20 years ago is different from the value of a dollar today.

To an average person who works a 9-5 or maybe even several jobs, inflation is bad. It chews away at their money! With the classic definition of inflation in mind, money is “worth less” and in turn, buys less.

Domenic Mandato, the President and CEO of Investplus REIT likens inflation to gaining weight. You go on with your days and at the end of a year, you may have gained a pound. After another year, you’ve gained another pound. You’re kind of aware of it until one day you look at an old picture of yourself and ask what the hell happened LOL.

Inflation is kind of the same. Have you noticed the price of food lately? Just thinking about your Dad telling you a loaf of bread cost $0.75 when he was younger.

Currently, every market is on fire—from small towns to even big cities, and inflation is observable across the country. For business owners, every action carried out affects income. As such, you would want to make sure that you run your numbers and that your business is sustainable even in the face of inflation.

The Impact of Inflation on Real Estate Investors

In line with the efforts to ensure that your business is sustainable, it is important to know how to take advantage of the benefits that inflation has on real estate investors. Yes, you read that right: Inflation can be beneficial to real estate investors.

You can hedge against inflation as a real estate investor, and this is especially true when you already own real estate. As building costs go up, it becomes more expensive for new developers to build. You, on the other hand, already have a building which will benefit from the presence of newly-built buildings in the same category around your area.

So as this new building is being constructed and costs more than your building, your real estate gets a little bump up simply because in comparison, your building is similar in space and has the same value to a person needing shelter. The difference is new verse older.

Yes there are other amenities but let’s think about just the essentials of having a place to live for now.

Notice also, I said older, not old. Keeping your older building up to date with the latest paint colors and renovation helps keep rents up.

Speaking of rents, if the new build costs more, their rent has to be more. Depending on the condition and demand for rent in your neighborhood, you can also increase your rent. See how you’re protecting yourself from inflation?

This is also made possible by buying below replacement costs. When your costs are lower, you can be competitive against the newer buildings because you can offer more or less the same amenities which you have purchased at lower costs.

Another (advantageous) impact of inflation on real estate investors is the income. Some people consider real estate investing as the “lazy way” to safeguard investments against inflation.

Think about our market right now. Even if you’re not thinking about selling your home, chances are, if you live in city of 100,000 or more, the value of your home has gone because of the demand for homes similar to yours.  What did you do to increase the value of your property? Nothing!

Should You Invest in Real Estate?

There are many options to look into when considering investing in real estate, and it can all get confusing. Fear will then kick in, and this can stop you from making that investment. To make your money grow, however, it is imperative to take that first step.

You can be new to all of this and still make solid investments by joining Investplus REIT.

Spearheaded by Domenic Mandato, Investplus REIT unitholders experience the diversification offered by multiple buildings across western Canada. With years of experience in the real estate field and with multifamily and commercial buildings under his management, Domenic continues to grow Investplus REIT’s unitholders investments.

We hope you enjoyed reading this article “Inflation: Is it good or bad for real estate? Should you have any questions or if you’d like to speak to one of our consultants you can.

Book a discovery call with our Licensed Exempt Market Dealer today.

Corporate Strategy | Our Portfolio | Current Offering

InvestPlus Reit expands Portfolio. InvestPlus Real Estate Investment Trust (the “REIT”) is excited to announce the addition of a 30,000 sq ft commercial building to its portfolio for $5,000,000 at a purchase cap rate of 7.4%. Possession is scheduled for July 2, 2020. This marks yet another accretive property added to the portfolio this year and continuing on an aggressive growth trajectory for 2020.

 

The InvestPlus REIT was also able to secure financing with a 75% loan to value at a rate of 3.6%. The property was secured as a five-year term on its mortgage and is projected to be accretive by more than $130,000 after unit-holder distribution.

 

The building is located in Red Deer, AB on three acres of land and was built in 2014 with the ability to expand the building in size and with additional bays. The tenant is also worth noting as this building is their North American headquarters and has a strong covenant. The tenant is in the business of manufacturing fire-retardant workwear for the transportation, forestry, mining, and oil and gas industries and is estimated to be within the top three suppliers in North America. InvestPlus REIT is excited with the addition of this asset and continues to grow with an ever-increasing and diversified portfolio in Western Canada.

About InvestPlus Real Estate Investment Trust

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. InvestPlus REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted over $90,000,000 in buildings comprising of 22 buildings in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at $47,020,000 and comprised of 11 commercial and residential buildings. Read the top 5 reasons to invest in a REIT.

For further information please contact us

Alberta Premier Jason Kenney visits the IFR Building

 

Public vs Private Market, the comparing of public and private markets has long been a debate topic to the question of where to secure one’s fortune. For us, the conversation always comes down to the operative word of our business: liquidity.

 

The public market’s liquidity is very much a double-edged sword. While the public market can be swayed into fast, lucrative returns, the opposite is also true. With the constant connectivity of the modern-day, people hear about stock news the moment it happens, allowing for knee-jerk decision-making causing markets to crash much faster than they used to. When a system permits investors to all pull out at once, that is when a market is heavily affected. In other words, liquidity = volatility.  So while yes the public market has liquidity, the consequences of mass liquidity affects all the stock market as a who, regardless of its performance.

 

This is not to say the public market does not have benefits. Ask anyone who invested in Zoom in March of this year and they would probably sing praise to the public market until they were hoarse. As well, anyone looking to cash-out of the public sector does not need to wait patiently . Generally liquidity can be achieved inside of 36 hours.

 

The private markets can see its own share of accelerated growth and unlike the public markets has low liquidity.  However, with low liquidity, volatility also decreases.  If you think about the price of your house when a major event happens, and the stock market crashes, what happens to the value of your house in that instant?  Values of private real estate simply don’t react that fast.  To give an analogy, we like to describe the private market as a vessel on the sea, carrying its capacity in cargo. If that vessel were to turn around, it would take a long time and do so in a predictable manner. During that time, anyone on the vessel could make adjustments and changes to reach their suitable outcomes.

 

If the private market is a vessel, the public market is a windsock that could violently flail at seemingly any given moment with no apparent direction. Sure, the ‘wind’ could be in your favour for now, but if your investments drop by 10% to 12% overnight due to COVID, you do not have the time to react.

 

Private investments are considered to be an illiquid investment however, ‘illiquid’ does not mean you cannot retrieve your money from the private sector. It simply means time will be required in order to satisfy the liquidity.  In the case of your home, in most cases it would take more than 24 to 36 hours to sell, close and receive your funds in your account.   Generally, anywhere from 30 to 45 days or more is a typical case for cashing out on your home.  For InvestPlus, we have working capital to allow for limited liquidity.  Anything more requires planning our cash outlay and timing.  Low volatility also allows for private companies to react to unpredictable events and make more calculated decisions as a result of having that time to react.  It also helps private companies to grow and leverage the funds raised to create a successful business instead of being in the position of liquidating investment dollars.  For instance, in just a six-month time span, InvestPlus REIT has seen a 57% growth in asset value and continue to diversify our portfolio in western Canada. , ‘

 

Its this disparity of stability between public and private markets that drives government programs to diversify their investments. Look no further than the Canadian Pension Plan, which invests nearly half of Canada’s retirement savings into the private market for better stability. It is worth noting that real estate makes up 40% of the CPP’s private investments — a statistic we hold with pride.

 

The pattern on display is that when looking to invest in the long term, companies, organizations and individuals alike are leaning towards the private market for a portion of their investment. Some simply do not have the time to monitor their stocks not only on a daily basis but on an hourly basis. Instead chose a market that can react accordingly and is not correlated to the public market.

 

About InvestPlus Real Estate Investment Trust

 

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. InvestPlus REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted over $100,000,000 in buildings comprising of 23 buildings in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at $49,500,000 and comprised 10 buildings in 5 different cities in western Canada.

 

Read the top 5 reasons to invest in a REIT.

 

For additional information, you are welcome to reach out to InvestPlus REIT directly, however for offering documents and additional information it is best to reach out to Klint Rodgers, the Assoc. VP of Business Development and Registered Dealing in BC, AB and ON with Axcess Capital Advisors Inc., our lead Partner and Dealership as it relates to capital raise across the country. Klint can be reached at Klint.Rodgers@AxcessCapital.com or you can book a Zoom meeting with him through the following link: Book Meeting Now!

 

How a Proper EMD Partnership Changes the Game. As with any venture into real estate investment, the key to a solid investment strategy is in the application of strong due diligence. As a potential investor, how do you know with some degree of certainty the company you are interested has been through the scrutiny of someone who understands private investing and real estate? For a REIT, it is through the partnership with an Exempt Market Dealer (EMD) like Axcess Capital.

 

On behalf of the investors, EMD’s scrutinize companies operating in the private sector such as InvestPlus REIT to ensure its proper operation, marking a fundamental shift from the days where the hiring of unlicensed salespeople for fundraising purposes was commonplace. Through this partnership, InvestPlus REIT will face the same level of scrutiny as larger corporations.

 

While we are not limited to partnering with just one EMD, this partnership with Axcess Capital has been strategic for us due to their deep roots as a real estate company. One of Axcess’ advantages is their roots in real estate which provides them the depth and experience to know what questions to ask that will give them and their clients the trust and confidence to invest with those companies they are representing.  EMD’s are constantly bombarded by new companies looking to have them on the EMD’s shelf to sell and represent to their clients but only a few are selected.

 

The reality is that many investors out there are not real estate experts, and we do not expect them to be. They need to rely on this thorough due diligence in order to trust that their hard-earned money is going to the right place.

 

Our Partnership With Axcess Capital

Our clients can first take comfort in knowing that Axcess Capital has been around now for 17 years and is very well respected throughout the financial community and across the country.  They are an IFM (Investment Fund Manager), RPM (Restricted Portfolio Manager to Real Estate & Debt), and of course, an EMD registered in most provinces. As registrants, their job is to conduct an enormous amount of due diligence in an effort to vet through and approve the right products and asset managers on to our shelf for our friends, family, and clients alike.

 

Clients of InvestPlus will personally deal with Klint Rogers, the Associate VP of Business Development with Axcess Capital and a Registered Dealing Representative in BC, AB and ON with the securities commission. His role is to educate clients further on Axcess Capital, the Private Markets, and some of the many Private Real Estate, Equity & Debt Firms (like the InvestPlus REIT) that might be of interest from a suitability, concentration and diversification perspective for a portion of one’s portfolio. It is worth noting they typically will not allow investors to go above a 45% concentration in the Private (Exempt) Markets, with no more than 10% into any one product.

 

It is in a partnership with an EMD like Axcess Capital that we, as a REIT, can proudly reflect our guarantee to operate by the books while we continue to deliver the performance and returns we are known for.

 

About InvestPlus Real Estate Investment Trust

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. InvestPlus REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted over $100,000,000 in buildings comprising of 23 building in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at $49,500,000 and comprised of 139 rental units and approximately 100,000 square feet of rentable area.

Read the top 5 reasons to invest in a REIT.

For additional information, you are welcome to reach out to InvestPlus REIT directly, however for offering documents and additional information it is best to reach out to Klint Rodgers, the Assoc. VP of Business Development and Registered Dealing in BC, AB and ON with Axcess Capital Advisors Inc., our lead Partner and Dealership as it relates to capital raise across the country. Klint can be reached at Klint.Rodgers@AxcessCapital.com or you can book a Zoom meeting with him through the following link: Book Meeting Now!

Is Office Over? As an influx of employees around the world become accustomed to working from their homes due to isolation and social distancing, there arises a growing question: Is this the end of physical office spaces? While I for one will always jump in with an opinion or prediction based on the information I have at hand, these days it is hard to think what will happen next.

 

It seems like a reasonable conclusion at the onset, after all in the short-term, some companies across the country are reporting a net increase in productivity. Many employees love working from home — after all who wants to sit in traffic while commuting to work? They can also look after their children and forgo having to pay for daycare and last but certainly not least, working from home means the ability to focus on getting work done without interruptions. While true in many cases, there are some challenges to running a business in a completely remote environment.

 

When I entered the work force in the mid ‘90s, Flex-Office and working from home began trending, with the word on the street being that it was over for office. The internet was gaining popularity and connectivity, although cumbersome, was achievable. With the use of faxes too, working from home was possible and even efficient. Since then and pre-Covid, you would not have considered that office could be over. Skyscrapers still dominate the skyline and offices continue to be erected.

 

Now that Covid is upon us, the same question arises: Is it over for office? Well, companies have since learned that the benefits of working from home were outweighed by other key factors, namely:

 

  1. Retention – Keeping good people proved to be difficult.
  2. Leadership – Finding people within the ranks to promote within their company was also difficult.
  3. Training and Maintaining a Company Culture proved difficult especially with new employees.

 

All of the above have one thing in common — the lack of in-person interaction you do not experience even if you are connecting everyday online.

 

In a clip from the Fast Company Impact Council, Author and Motivational Speaker Simon Sinek poses that many leaders underestimate the effort that goes into running virtual workspaces. Sinek says that although productivity is seeing an increase with employees working from home, humans are social animals that need to be in the company of others in order to maximize creativity and teamwork potential.

 

“It’s very hard to brainstorm or have any creativity like this [over video call], we need to be in the company of others,” says Sinek in the video clip. “We need to be able to interrupt each other, write things on walls, and have that wonderful, magical energy, and then go for lunch together to build that relationship.”

 

There is an element that exists in the office that you simply cannot get from home. It is that energy when you see coworkers working together to achieve a common goal. It inspires you. It moves you. It is also the ability to take someone aside and have a brainstorming session over a steamy cappuccino. You cannot experience this from Zoom or other online video conferencing.  On a personal note, I can tell when we are videoconferencing our board meetings, some members miss out on the intricacies and interactions that exist when the other members and myself are in the same room. It is hard to have a simple one-on-one conversation to ask about how their family is doing or ask about how their relative’s surgery went with a group video conference.

 

Being in sales and interacting with people on a daily basis, I cannot imagine getting the same level of a relationship you can build from a videoconference vs in person. Just the other day we had an in-person meeting with a consulting company that works on behalf of cell-phone carriers and building owners like us to install cell towers. During that meeting we learned more about how we can further that relationship vs if we were on the phone or videoconferencing. We enjoyed each other’s company and values and can see ourselves doing business together.  That is the value of interacting in person.

 

What Will Change?

Though I do not foresee the end of the traditional office environment, I believe that with this new option for employees to be able to work from home, companies are going to utilize offices differently.

 

I do not see office continuing in the same matter as pre-Covid but rather the custom office space model taking off. Recently we have seen large companies like Facebook and Microsoft   investing in newly-designed office spaces that allow workers to come and go as they choose. This opens up the possibility and flexibility for employees to come to work and utilize common work areas but at the same time work from home one or two days a week.

 

One of our properties, Britannia Business Centre (BBC) functions as one of these designated spaces, providing open workspaces for any sized company. It is designed to allow companies to meet with their employees when needed and utilize the space more efficiently. Some solutions we have are open-concept ‘bull-pen’ style offices, coworking space, shared offices, incubator spaces and virtual office. We even have a ‘Zen Space’ for those needing to get some fresh air to contemplate new ideas. This allows for employers to manage their cost and have a place to interact with their staff without the long-term leases and space commitments that exist with typical office space (although we also have this option as well).

 

This custom office model began to take traction back in the early 2010s — companies began providing co-working spaces and office rental services to individuals and enterprises alike. By renting an office space or a conference room on an ‘as-needed’ basis, they generate more profitability, especially for companies that lack the overhead of a corporate office. The community atmosphere this model allows for is the very reason I do not think this is the end of offices. Proven by the amount we all miss our friends and family during this pandemic, at the end of the day, human beings crave each other. The new office will provide balance of the social interactions we have learned is necessary within a company but also manage costs for the employer.

 

To learn more about custom office workspaces and how they are changing the office environment, visit Britannia Business Centre at www.calgaryofficeplus.com.

 

To find out more about the future of office real estate, contact InvestPlus REIT, where we always have our finger to the pulse of the changing Canadian real estate landscape.

 

About InvestPlus Real Estate Investment Trust

 

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. InvestPlus REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted over $100,000,000 in buildings comprising of 22 buildings in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at $49,000,000 and comprised 10 buildings in 5 different cities in western Canada.

 

Read the top 5 reasons to invest in a REIT.

 

For additional information, you are welcome to reach out to InvestPlus REIT directly, however for offering documents and additional information it is best to reach out to Klint Rodgers, the Assoc. VP of Business Development and Registered Dealing in BC, AB and ON with Axcess Capital Advisors Inc., our lead Partner and Dealership as it relates to capital raise across the country. Klint can be reached at Klint.Rodgers@AxcessCapital.com or you can book a Zoom meeting with him through the following link: Book Meeting Now!

 

 

InvestPlus Real Estate Investment Trust (REIT) is thrilled to be welcoming Klint Rodgers to the InvestPlus team. Klint Rodgers will be joining our Education Team.

 

Klint is a Registered Dealing Representative with Axcess Capital — a Corporate Finance Firm registered in numerous provinces with the securities commission across the country. Axcess Capital is an IFM (Investment Fund Manager), an RPM (Restricted Portfolio Manager, to Real Estate and Debt) and an EMD (Exempt Market Dealer) which has been established to conduct rigorous due diligence on private investment offerings to bring top-notch asset managers and institutionally structured investment offerings to our friends, family and clients alike.

 

At any given time, Axcess Capital has up to 15 Private Real Estate and Equity Firms available for consideration, most being RRSP and TFSA eligible, many with tax-advantageous structures, paying monthly or quarterly distributions, and often targeting returns ranging from about 7–12% plus per annum.

 

“Klint’s job as a Registered Dealing Representative in BC, AB and ON is to educate Canadians on the Private Markets, and the importance of truly diversifying one’s portfolio,” says Domenic Mandato, CEO of InvestPlus REIT

 

Klint was born and raised in Vancouver, BC. A serial entrepreneur, having owned and operated half a dozen or so businesses right out of College. At a young age, Klint quickly realized real estate was where his passions lied and eventually went on to supplement his self-employed income through the purchase and sale of many personal properties within Vancouver’s lower mainland. In 1998, while at College for the 2nd time, Klint met his future wife and ended up getting married in Seoul, South Korea in April of 2000. Today, Klint is the proud father of a 13-year-old daughter and has since been married for 20 years.

 

With his family’s future in his hands, he went on to become a Registered Dealing Representative in the Exempt Market in 2011 and has not looked back. Klint has become one of the Top Producers in the Country representing 12-15 plus Private Equity and Private Real Estate Investment Firms at any given time, presently holding licenses in BC, AB and ON with the securities commission and proudly partnered with the Exempt Market Dealership, Axcess Capital Advisors.

 

As Mandato says, “Klint has been recognized by Wealth Professionals Magazine as a Finalist for Best Advisor in the Alternative Investments sector because he knows the industry better than most and we’re proud to have him on our team at InvestPlus REIT.”

 

InvestPlus REIT’s Coronavirus Reflections Webinar

 

As we continue to navigate through a financially tumultuous time thanks to the unprecedented effects of COVID-19, it has never been more imperative to reflect on which techniques have been successful in mitigating loss.

 

Join InvestPlus REIT President and CEO Domenic Mandato as a part of our exclusive webinar series, where he will divulge just how the REIT has circumvented the major challenges presented by the coronavirus through diligence and expertise.

 

In this week’s webinar, you will learn how InvestPlus REIT has effectively navigated through the COVID-era of real estate investment. Discover how, over the last six months, the REIT has acquired more than 20 million dollars in assets delivering a 57% growth in asset value while also growing its investor base equity by 30%.

 

Domenic Mandato, President and CEO of InvestPlus REIT will cover these areas using current market figures and personal examples. Discover just how InvestPlus REIT has tackled one of the most important financial challenges in the country’s history.

 

Register HERE for the Domenic Mandato’s most recent Webinars.

 

About InvestPlus Real Estate Investment Trust

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. InvestPlus REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership, and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted over $90,000,000 in buildings comprising of 21 building in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at $40,020,000 and comprised of 139 rental units and approximately 90,000 square feet of rentable area. Read the top 5 reasons to invest in a REIT.

For further information please contact us.