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Changing Careers to Change Lives

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Five Reasons I Chose Real Estate 

It’s an exciting time for me as I share a significant milestone in my career journey. Making a leap from the manufacturing industry to pursue my true passion: real estate investing and helping others in my network achieve true financial and professional freedom. 🏘️

I’ve always been fascinated by the world of real estate. The allure of tangible assets, long-term growth, and the ability to create passive income streams has been a driving force behind this transition. I’m grateful for the knowledge and experience gained in manufacturing, which has equipped me with a unique perspective as I embark on this new chapter.

My ‘Aha’ Moment

Throughout this transformative journey, there was a defining ‘Aha’ Moment that has had a profound impact on shaping my path in real estate. Spending countless nights with my then-colleague and esteemed BG investor, Kyle Fairbarn, not only opened my eyes to the tremendous potential within the world of real estate but also solidified my alignment with the values and vision of the BG Wealth Group team.

As we delved into the intricacies of real estate investing during our late-night analysis sessions, I realized that our shared passion for creating wealth and making a positive impact aligned perfectly with the mission of BG Wealth Group. The synergy and camaraderie we experienced as a team further reinforced my belief in the remarkable opportunities that lay before us.

It’s not just about financial gain; it’s about creating a legacy for your family and empowering yourself to make a difference in the lives of others. By strategically investing, you can build a solid foundation of wealth that can be passed down to future generations. Imagine providing your loved ones with valuable assets, opening doors to new opportunities, and ensuring their financial well-being for years to come. 💰

💎 Why I Chose Real Estate

  • A tangible asset with appreciation: Real estate appreciates over time, providing long-term growth and equity accumulation.
  • Passive income stream: Rental properties generate reliable cash flow, supplementing your primary income for financial security.
  • Diversification and risk mitigation: Real estate diversifies your portfolio, reducing risk and providing stability during market fluctuations.
  • Tax advantages and wealth preservation: Take advantage of tax benefits such as deductions on mortgage interest and property taxes to optimize your tax strategy and preserve wealth.
  • Legacy and inheritance planning: Real estate investments create a lasting legacy for future generations.

Connect with me and let’s explore the remarkable potential of real estate investing and wealth management with BG Wealth Group together. Secure your family’s financial future and unlock endless opportunities! 🚀

 

By Jason Sultana

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950-956 2nd Ave. Street East, Owen Sound, ON

Owen Sound

261-281 9th Street East, Owen Sound, ON

Value
Purchase Price
$1,055,000
Rents upon acquisition
$127,000
Fully rented
$235,290
Fully rented Building Value
$2,256,000
5-year ROI annualized
15.99%

The Story
261-281 9th Street East is a mixed-use (commercial/residential) building located in the heart of the downtown River District of Owen Sound. The building consists of 9 residential units (7-1 bedrooms, 1-2 bedroom & 1 studio apartment) and six commercial units. BG Wealth Properties purchased the building in March 2019 for $1,055,000 and immediately started employing its value-add model by renovating units and attracting high-quality tenants at attractive rental rates.

At the time of acquisition, one-bedroom residential units were renting anywhere from $550-$800 per month, and the two-bedroom unit was renting for $700/month. Through our value-add program, BG dramatically improved the condition of these units while successfully increasing rents on one-bedroom units to $1,300 per month, and $1,400 per month for the two-bedroom unit.

Similarly, commercial tenants were paying anywhere from $8.50-$10.00 per square foot at the time of acquisition (inclusive of taxes, maintenance, and insurance). Within the first 6 months, BG successfully started renovating commercial units and had new tenants sign long term leases at an average rate of $14.00 per square foot + $4.00/foot TMI (taxes, maintenance, and insurance) – for a total average rate of $18.00 per square foot.

Fully rented, the building carries a value of $2.2 Million based on rents we have achieved through our value-add business model.

This property still has more upside potential.

image of a road

Owen Sound

950-956 2nd Ave. Street East, Owen Sound, ON

Value
Purchase Price
$555,000
Rents upon acquisition
$28,800
Fully rented
$187,692
Fully rented Building Value
$1,600,000
5-year ROI annualized
17.38%

The Story
950-956 2nd Avenue East is a mixed-use (commercial/residential) building located in the heart of downtown’s River District of Owen Sound. The building consists of 6 residential units (2-2 bedrooms, 3-1 bedroom & 1 studio apartment) and two commercial units. BG Wealth Properties purchased the building in March 2019 for $555,000. The five upstairs vacant residential units were gutted with no tenants, while the downstairs had a high-end spa and a furniture store as commercial tenants.

In March 2021, BG Wealth Group partnered with an institutional lender and secured funding to renovate all residential units. In addition, given the shortage of high-end vacation rentals in the City of Owen Sound, BG has converted all six units to short-term vacation rentals, which will launch at the end of 2021.

In June 2021, BGWP attracted an up-and-coming Flame ‘N Bricks pizzeria franchise located in the commercial space beside the high-end spa. The culmination of high-end vacation rentals on the upper level, a spa and a pizzeria on the lower level will make this building one of the most attractive buildings in the downtown River District.

BG received a post-renovation appraisal of $1.3 Million on the building – more than 2X the original purchase price. Fully rented, the building carries a value of $1.6 Million based on typical short-term rental rates of the area.