The 3 biggest lessons from ‘4 Years to Your First $1Million’

Blog / September 23, 2022

BG Wealth Group Co-Founder & CEO Craig Dunkerley delivered his seminar ‘4 Years to Your First $1Million” at the recent Toronto Franchise Expo to a packed room of established and aspiring franchisees.
The show drew many people considering franchise ownership and other types of real estate-oriented investment. Craig took the opportunity to deliver a universal message for those looking to build wealth on their own terms.
During the session, he boiled his essential process down to 3 essential lessons:

Get acquainted with your banking and investment fees. As Craig said, the average person who invests with a bank is losing up to 60-70% of their potential wealth to fees.
Consider starting a business (franchises included)! In an example he gave, Craig’s client went from being an employee to a sole proprietorship business, which reduced her taxes and therefore positioned her favorably to build wealth. This is even the case for those who choose to keep their “day job”; starting a business can be as simple as incorporating something you are passionate for and willing to work towards.
Finally, build the habits that connect you with your money. Keep an eye on your accounts and check in on all investments at a minimum of every 3 months, if not more.

If you missed this seminar, there is a short highlight recording here.

Many of Craig’s lessons are rooted in his e-book ‘Tax Mastery’, available now as a complimentary download. Visit the link and get your copy now to learn how you can maximize your investable income, without raising any additional capital.
Click Here.

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.

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.