Strategy
We provide opportunities for individual and institutional investors through a reliable investment strategy. As a local presence with access to the right information and relationships, VSM has demonstrated performance above the stock index.
Strategic Real Estate InvestmentVSM Realty works with developers to acquire properties in attractive local markets which are poised to produce consistent returns.
VSM focuses efforts on properties offering locations with promising economic potential while providingour clients with properties that will sustain themselves for the long-term and produce consistent positive cash flow.
Why Invest with VSM?Historically, real estate has created more millionaires than any other asset class. Investing in real estate affords the careful investor a global opportunity regardless of current provincial or national outlooks. Residential, multi-family real estate has also outperformed other real estate classes, including retail, office, and industrial.
With that being said, informed decisions are essential in minimizing risk and maximizing returns. Disciplined investing and management are musts. VSM Realty has the experience, depth, and proper stance to manage such investments and to generate positive cash flow.
VSM has an active management approach that differentiates us from other typically more passive real estate investors such as pension funds and REITs. Our focused Acquisition Checklist allows us to accurately determine the criteria needed to make a sound investment.
Sample questions from our checklist are as follows:
- Will rents rise faster than average?
- Will vacancies be lower than average?
- Will population growth be higher than average?
- Will job growth be faster than average?
- Is housing affordability in the appropriate range (not too low so that too many renters are converted into owners but not too high sothat appreciation upside is limited or there's risk of a price bubble)?
- Are local political and business leaders willing to develop strong relationships with us and help us uncover and create good
- investment projects (e.g., city planners, realtors, leasing agents, property managers, developers, construction firms)?
- Is the construction complete or nearly complete and done at a high quality level?
- Are there opportunities to purchase properties at significantly below retail value?
- Is there a good fit between VSM and the original developer?
By properly assessing each property to determine its fit, we can more accurately choose the properties that best suit us and our investor's needs.
Quick Facts
- Type of properties being bought:
Brand new multi-unit residential projects that will cash flow when rented out - Specific types of properties:
Multiple level condo buildings, row townhome condos, townhomes, hotels (that we will operate as residential income properties instead). Typically 20 units and greater in size. - Rental Income:
Sufficiently high so that net operating income generatespositive cash flow each month with leverage generallyranging between 75-80%. Break-even cash flow will be considered if value appreciation potential is large enough. - Timing:
Purchase within the next 12 months to take advantage of market conditions. - Ownership structure:
Individual title held by investor.