Bring your investments closer
If we’re going to get confidence and take advantage of this new investment climate, we need to become skeptical. We must question what we are told and what we are promised. We need to understand what we are investing in and why and how it makes a profit.
We should choose investments based on a sound fundamental strategy and not compare them solely by returns or past history; some of the ‘best performing’ and oldest investment firms have recently collapsed.
We need to bring our Investments closer to us.
Parkhurst Asset Corp. is the asset manager & general partner for a growing number of Limited Partnerships focused on multi-family & retail strip mall properties in Alberta. With a focus on purchasing income producing properties with a 0% speculation strategy. Our investments are designed to maximize income & capital growth. As an investor, you’re shielded from legal liability, responsibility for mortgages, and you can’t be called upon for more than your original investment.
You can take advantage of owning income-producing apartment buildings and commercial properties without having to take the same risk or spend as much time as you would when buying property directly. Plus, you gain access to ownership of larger, more profitable properties, which makes your capital grow faster.
|Type: Multi-family Apartment Building
Location: Central – Edmonton, AB
Legal Structure: Limited Partnership
Alberta Is On Sale
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Our predictions and research at Parkhurst are in line with this. Starting in 2010, it is the time to buy select, income producing properties, in specific neighborhoods and areas of Alberta. Download our investment guide for more details on how you can capitalize on this next boom with as little as $10,000.
Research provided by Real Estate Investment Network™ & www.donrcampbell.com
Want to learn how you can profit?Why Multi-Family Apartments TSX vs AB Real Estate
Why Multi-Family Apartments
Everyone needs a place to live, regardless of the current economic cycle.
Slow. Steady. Sizzling.
Why multi-family apartments are our favourite asset class in any market cycle.
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Investment Advantages of Multi-Family Apartment Buildings
Lower purchase price, same rent.
Due to higher economies of scale, the ‘per door’ cost of an apartment unit is less than a single family home or condo, but can generate the same rental income.
For example, you can buy an apartment building for $90K–$100K per door that rents for $800 per month, or you can buy a condo worth $150K–200K that rents for a similar $800–$1,000 per month. This means you can have almost double the rent for the same amount of investment capital, assuming you have enough to buy the apartment building.
Less vacancy risk
Apartment vacancies are far easier to manage. If you own a rental property and your only tenant can’t pay their rent, you have a risk exposure of 100%, and you’re now paying all operating expenses (mortgage, taxes, etc). When you own an apartment building and tenant doesn’t pay their rent, the rest of your tenants still cover operating expenses. The chance of every tenant in the building failing to pay rent is almost zero.
Lower operating costs
Lower operating costs increase your cash-flow. Apartment buildings share electrical, plumbing, heating systems and more across all units, which reduces maintenance costs. The most obvious example would be that everyone shares one roof.
When you own an apartment building, professional third party management and on-site caretakers become a reality. All tasks (rent collection, maintenance, etc) are handled at one location for all tenants. If you own a single family home or condo, finding third party management can be nearly impossible as they can’t work efficiently enough to make an attractive profit.
Banks see the stability in apartment buildings as well. That’s why all major banks and many lenders compete to lend money against apartment buildings in major markets. This competition drives down interest rates, and the bank’s spread, resulting in the best available commercial lending rates for all commercial asset classes; often close to home-owner rates. CMHC insured financing is also readily available, and used when the premium cost versus the rate discount savings makes sense, usually if longer than a four year term.
Building first, then the borrower. Lenders evaluate the existing and historical financial performance of an apartment building before the borrower. This allows for often easier qualification than what single family investors experience if they own more than a few properties.
Advantages and Disadvantages of Other Commercial Asset Classes
Above Average Returns, Without the Risk
Do you like above market average returns, but also sleeping comfortably at night? Apartment buildings offer the best mix of above average returns without the downside risk. Attractive and readily available financing allows for lower initial equity investment. The ability to increase income more rapidly, and through active asset management, allows for even better returns through Parkhurst too. Strategic purchases also allow for multiple exit options including selling units individually as condominiums for an added bump in returns at the end of an investment.
Access Multi-Family Opportunities Through ParkhurstInvest Directly vs Pooled