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May Wealth Council Focuses On Branding

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Monthly meetings of the Wealth Council, presented with our partners at C-Suite Network™, continue to be a lively forum for the exchange of ideas in the world of business and investment. In our next session on Thursday May 3 at 3pm ET, BG Wealth Group™ Founder & President Claudia Harvey will turn our attention to perhaps our most critical investment as leaders in business: our brands. 

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What exactly is a brand? What is its role in generating revenue? How much does it cost us when we choose *not* to invest in a strong reliable marketing presence? Branding is a two-way consideration, which involves defining the reputation and positioning of the investor, as well as that of any enterprise seeking funding. 

Claudia brings a truly unique perspective to this discussion, as she has cultivated and launched highly successful brands from inspiration to idea to inception, yet also has evaluated and purchased brands based on investment readiness.  

The group will be joined by BG Wealth Group Founder & CEO Craig Dunkerley and guest speaker Brand Visibility Expert Kim Speed, who will share her own process for maintaining a successful brand. Kim has worked with multiple international business brands.

On the investment side, Claudia and Craig will also offer their perspective on the influence a brand can have as they implement their proven successful evaluation and investment process.  

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Interested in joining the Wealth Council and attending our May meeting? Wealth Council annual membership includes monthly meetings, regular emails with market insight and networking amongst like minds, all of who share a purpose to invest better and stronger. For more information and assistance with registration, email us on wealthcouncil@bgwealthgroup.com.

The information provided in this article is subject to the terms and conditions of BG Wealth Group, which can be accessed by clicking here.

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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.