WESTBOWCAPITAL
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Press Releases and Blog Posts

12 Benefits of Investing in a Private Real Estate Trust

1) Tangible Assets

An investor in a real estate trust can feel secure in the fact that their investment is backed by real estate. Being secured by a tangible asset with potential steady rental income and appreciation creates a strong sense of security.

2) Pooled Investments

A real estate trust allows investors to overcome a lot of the barriers of entry to investing in real estate. Instead of having to save up all of the capital on their own for a down payment, numerous investors can be pooled to acquire larger properties. These larger properties can create economies of scale by rental units costing less on a per unit basis and result in more cost efficiencies by having a centralized property manager, which can potentially lead to a stronger return on investment.

3) Multiple Ways to Earn Returns

Private real estate trusts have four primary drivers that help grow the total return of the real estate portfolio:

·         Positive cash flow – positive cash flow occurs when rent exceeds your mortgage and operating expenses

·         Reducing debt – tenants will pay the mortgage for you, increasing equity in the process

·         Building equity through improvements – renovations add value to the property

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·         Asset Appreciation – real estate values have historically increased over time

4) Distributions Can Provide Revenue

A Real Estate Trust can pay out a portion of your return quarterly to provide you with a steady income.

5) Registered Fund Eligible

Real Estate Trusts are structured in a way that allow for investments through registered savings plans, including Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP). Due to this, investment returns could be applicable for tax benefits based on the eligibility of those plans. 

6) Professional Management

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Strong management can provide a diverse range of expertise in areas such as real estate investing, property management, construction, finance, development and strategy. Management teams are often co-invested in the trust; this ensures that interests are completely aligned with investors.

7) Regulated Transparency and Controls

A real estate trust is regulated by the applicable securities commission that regulates each province.  This helps to ensure accurate financial information and reporting for investors.

8) Real estate Investing with Limited Liability

A real estate trust is structured in a way that protects investors from personal liability that they may be exposed to if they personally owned their own investment property. Investors in a trust are not responsible for the liabilities of the trust.

9) Diversification

Investors in a real estate trust may benefit from a large diversified real estate portfolio that spreads the risk over several properties and provinces.  

10) Cash Reserves

Direct real estate investors may struggle with maintaining sufficient cash reserves to cover expenses such as maintenance, vacancy, and renovations. A real estate trust pools investors’ capital and allows for adequate cash reserves to cover the expenses of managing the properties.

11) Low Barrier to Entry

The low minimum investment rates opens the door for a wide variety of investors including those who do not have a large amount of capital but would like to invest in real estate early in their career. 

 

12) Automatic Reinvestment

Distribution Reinvestment Plans (DRIP) give the option to investors to have their distributions automatically reinvested in the fund. This provides a hassle-free reinvestment, often at discounted trust unit prices to help grow overall returns for investors. 

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To learn more visit our website or our campaign page on FrontFundr

Christine Jamieson
Press Release: SunRidge Acquisition

Chilliwack, BC, Canada (September 17, 2019) - Westbow Capital Income Fund (“Westbow Capital”), a privately held real estate trust, is pleased to announce the acquisition of SunRidge, a community of 9 homes in Lethbridge, Alberta, for $3.6 million.

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The SunRidge homes are purpose-built rentals with 2 units in each home. This results in a portfolio of 18 rental units in Lethbridge Alberta. The SunRidge community is located across the street from Sunridge Park with a lake, trails, playground, close to schools and shopping. The homes are located in Western Lethbridge allowing for easy access to downtown Lethbridge and the universities. Each home features 2 rental units with an average size of 1000 sqft. The upstairs units feature 2 bedrooms and 2 bathrooms, with the downstairs unit featuring 2 bedrooms and 1 bathroom.  These 2 storey homes were built in 2019. This rental community presents the opportunity for strong cash flow and aligns with Westbow Capital’s investment strategies.  This is Westbow Capital’s second acquisition in Alberta.

The SunRidge community is built to Green Bronze Standards with a dedication to environmental and economic sustainability.  

Lethbridge is Alberta’s third-largest city by both population and land area, and the largest city in Southern Alberta. Lethbridge has become the agricultural hub for Southern Alberta, and management believes that the stable, supportive business environment certainly adds to the likelihood of the city’s growth and success. Businesses also benefit from the intelligent, skilled workforce that is supported by two quality post-secondary institutions and one of the largest federal government agriculture research centres in Canada.

This  news  release  does not  constitute  an  offer  to  sell  or  a solicitation of an offer to buy any of Westbow Capital’s securities.

About Westbow Capital Income Fund

Westbow Capital was formed in January 2019 and is a real estate trust with headquarters in Chilliwack, BC. It focuses on acquiring and managing primarily low to mid density residential rental properties in Western Canada.

The Westbow Management team has over 40 years of experience building and owning real estate all over North America. Through this the team has gained experience in all aspects of managing rental real estate properties including, but not limited to, analysis, acquisition, and upgrading.

Investor Relations Contact:

Joe Vogel, Investor Relations | (604) 490-3451 ext 41 | joev@westbow.ca | westbowcapital.com

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Christine Jamieson
BRRR Real Estate Investing Strategy - Part 1

BRRR Real Estate Investing Strategy

There are dozens of different strategies an investor can take in Real Estate Investing. A great real estate investing system or strategy is called the BRRR method. This acronym stands for Buy, Renovate, Rent, Refinance, and Repeat. This real estate investment strategy can be an efficient and lucrative process. In this two part blog feature we break down the five different aspects of this real estate investing strategy.

Buying Real Estate

The first step in any real estate investment strategy is the purchase of an investment property. There are many different things to consider in choosing a real estate investment property.

1)      Location. Location is one of the most important aspects to investigate when looking at an investment property. The property should be in a growing community close to places of employment, schools, and amenities.

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2)      Cost.  A key to successfully investing in real estate is purchasing an investment property at a good deal at the right time for the market. Compare the cost of your potential investment property against comparable houses and add a budget for any potential renovations.

3)      Rental income potential. If the property is already rented out, look at the rental history and current rental rate — and then compare those rates to others in the area to make sure the rate is at market value. If it was previously an owner-occupied property, you can check on Craigslist for rentals that are similar in size, amenities, and location. Learning how much they’re renting for will give you a better idea of what you could charge.

4)      Renovations needed. Making renovations to a property can provide added profits- however, it is important to estimate the cost of the potential renovations prior to purchasing the property. Otherwise they may take a larger amount to complete then you originally planned for. Consult with an experienced contractor if you need help in putting together an accurate renovation budget.

5)      Consider appreciation. There are two kinds of appreciation when it comes to real estate: forced and market. If you buy a house and do a bunch of repairs to increase its value, that’s forced appreciation. If the neighborhood improves or the market naturally increases in value over time, that’s market appreciation.

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Westbow Capital’s strategy

Westbow Capital’s acquisition strategies include buying purpose built rental homes developed by sister company, Westbow Construction, and buying newer mid-to-low density homes. A final acquisition strategy will be to buy some older properties that could have some forced appreciation through renovations in specific markets within Western Canada. To learn more about Westbow Capital’s Strategy and how to invest, visit our website or our campaign page on FrontFundr

Christine Jamieson
Raintree Feature: How Millennial Real Estate Trends Influence the Real Estate Investing Market

Recently, Westbow Capital had the opportunity to write a feature article for Exempt Market Dealer, Raintree Financial. The article focused on the trends of Millennial Homeownership and can be found below.

The homeownership landscape is changing. Millennial buying power in the Canadian Real Estate Market is lower than the generations before, which has led to an increased demand in low-to-mid density rental housing within suburban communities. Due to these trends, now is the ideal time to invest in a real estate trust that follows this movement. Westbow Capital invests in low-to-mid density rentals with acquisitions in communities in Western Canada.

Millennial Trends in Homebuying
We hear it often; Millennials are different than any other generation before. They’re getting married later in life, are more focused on careers and are spending less money on everyday items and more on luxuries. Part of this trend is a decrease in Millennial home buying and rather renting their living accommodations.

Many factors have hindered Millennials’ progression in the housing marketing, including: the financial crisis between 2008 and 2009, high unemployment rates, tighter mortgage rules and increasing housing prices, to name a few. Despite being better educated than their parents, their rate of wealth accumulation pales in comparison.

The buying power of Millennials in real estate isn’t getting any better. Since the introduction of the mortgage stress test in January (making it harder to get approved and increasing minimum down payments) and rising interest rates elevating borrowing costs, opportunities to get into the housing market have diminished. The demand for housing is not falling any time soon. What could fall, however, is the rate of young households who own a home. High housing prices set an impossibly high bar to clear for many millennials to become homeowners.

Millennial Trends and Westbow Capital
The age of Millennials is now between 23 to 37 years old, reaching the age of household formation and increasing the demand for single family and low-to-mid density homes. Due to the lack of affordable buying possibilities, many Millennials are switching to renting as a housing option. According to The Urban Institute 74% of Millennials are currently renting in Western Canada, in comparison to 62% of Generation Xers renting in 2000.*

Westbow Capital has recognized this trend and offers a “hassle free” Real Estate Investment Fund that invests in Multi-Family and low-to-mid density Rentals in Western Canada.

Hassle Free Real Estate Investing
Westbow Capital is a real estate mutual fund trust focused on raising capital to acquire and manage low-to-mid density residential rental properties in Western Canada. Westbow Capital’s main goal is to help you invest in real estate, stress free, with a solid rate of return.

Westbow Capital is the culmination of the many years of experience within the construction, real estate and development arenas. Having a strong relationship with Westbow Construction, a low-to-mid density housing contractor, allows Westbow Capital to utilize over 40 years of experience to seize trends available in the market.

Contact your Private Wealth Advisor for more information on how to invest with Westbow Capital.

*Millennial Homeownership, July 2018, Urban Institute: https://www.urban.org/sites/default/files/publication/98729/millennial_homeownership.pdf

Christine Jamieson
Westbow Acquires First Investment Property
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Chilliwack, BC, Canada (April 18, 2019) - Westbow Capital Income Fund, a privately held real estate mutual fund trust, is pleased to announce the acquisition of Windsor Place for $25.1 million outside Edmonton, Alberta. It is Westbow Capital’s first acquisition into the fund.

Windsor Place is a three-building complex containing 144-units. These four storey apartment buildings were built in 2015-2016 with elevators going up to the fourth floor.  Its location is just off HWY 21, 35 minutes to downtown Edmonton. The property already has a strong cash flow and aligns with Westbow Capital’s strategy to acquire mid to low-density properties. This will be Westbow Capital’s first foot-hold into the northern Alberta market with plans to hold this property for the duration of the fund.

The Edmonton area is a major gateway to the North and is home for many companies including airline, oil, gas, and mineral mining.  It’s the sixth largest city in Canada with over 1 million in population. It is the home to several major heavy industries adding to the diversity of the region.

About Westbow Capital Income Fund Ltd.

Westbow Capital was formed in January 2019 and is a real estate mutual fund trust with headquarters in Chilliwack, BC. It focuses on primarily low to mid density residential real estate properties in Western Canada.

The Westbow Management team has over 40 years of experience building and owning real estate all over North America. The management team is experienced in the analysis, acquisition, disposition, repairs, upgrading and other facets which are core to managing rental real estate properties.

Investor Relations Contact:

Joe Vogel, Investor Relations | (604) 490-3451 ext 41 | joev@westbow.ca | westbowcapital.com