BG Wealth Group

Scaling Up Your Wealth Through Strategic Real Estate Investment

As the financial landscape evolves, so must our strategies for wealth creation. At BG Wealth Group, we are dedicated towards making this process as simple and concise as possible. In this week’s blog, we go over the importance of evolving your investment strategies to fit the modern-day climate and urge you to come meet us during our quarters Investors Mastermind, open to all current BG Wealth Group Clients.

In this quarter’s Investors Mastermind event, we delve into a compelling topic – the art of scaling up our wealth alongside the growth of our businesses. The burning question we address is: How can we ensure that our wealth works for us just as effectively as our entrepreneurial endeavors? It’s time to move beyond relying solely on high-yield investments and traditional bank accounts.

For all current clients, register for our event here.

Unveiling the Power of Real Estate Investment

So, let’s get into it, why do we put so much emphasis on real estate?’

If you’ve been following our previous blogs, you’re likely already aware of the numerous advantages that real estate investment offers, emphasized by our excellent investment products like our Growth Fund and Private Lending.

But let’s recap briefly. Real estate has stood the test of time as one of the most reliable investment avenues for years. Its tangibility provides a sense of security – your money is tied to physical properties, not abstract concepts. Witnessing the value of your property increase over time, with your direct influence through decisions like renovations, tenant selection, and location choice, contributes significantly to your investment’s growth.

The benefits of real estate vs intangible assets such as stocks go a long way, as stocks can be unpredictable, tend to crash, and generally seem like a gamble instead of an investment. With real estate, especially with BG Wealth Group, this uncertainty is comforted by our knowledgeable experts, and our personal approach to client investing.

Interestingly, real estate investment is also a hedge against inflation. Unlike cash, which can lose value over time due to rising prices, real estate assets tend to appreciate, effectively keeping pace with or even outstripping inflation.

The Path to Scaling Up: The Growth Fund

So, how do we achieve this envisioned scale of wealth?

At this quarter’s event, we’re excited to explore various solutions that facilitate the continuous growth of your wealth – whether you’re sleeping, working, or even vacationing. Our well-honed business model revolves around acquiring undervalued properties and strategically developing them for maximum value. And now, we’ve supercharged this strategy with the introduction of the Growth Fund.

This innovative approach has yielded astounding results, with properties entering the Growth Fund experiencing value increases of over 50%. This makes it an ideal avenue for investors who have already established wealth through our Private Lending product and are now seeking higher-yield opportunities to elevate their wealth-building journey.

Our approach with this product involves leveraging tangible real estate assets, meticulously sourced by our expert team, which are designed to appreciate over time. This approach boasts a potential return on investment (ROI) up to four times that of traditional investment vehicles. While we do the heavy lifting, your wealth grows at a remarkable rate, ranging from 18% to 24%. The cornerstone of this approach is, a meticulously curated collection of high-potential properties situated in thriving regions across Canada and the United States.

The United States has been a significant market for us, where we’ve successfully established a portfolio of properties that has yielded an average internal rate of return (IRR) of 28.64% for our partners.

The Benefits of Scaling Up Your Wealth Strategy

Imagine the possibilities that await as you embark on this journey of wealth transformation. Not only will your wealth be in expert hands, but you’ll also witness it grow at an unprecedented rate. The Growth Fund is designed to amplify your wealth-building efforts, providing you with the means to secure your financial future and pave the way for generations to come.

Don’t miss out on this quarter’s event – a golden opportunity to gain insights into the properties slated for inclusion in the Growth Fund. Join us as we equip you with the tools and knowledge to step confidently into the next chapter of generational wealth building.

For all current BG Wealth Group Clients, secure your spot by registering here.

Elevate Your Wealth-Building Journey

Interested in becoming a client and experiencing the exclusive content? Are you ready to take your wealth-building journey to new heights? Book a call with our team today and let’s explore how our strategies align with your financial goals and aspirations.

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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.