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Women and the Power of Real Estate Investing: Building Generational Wealth with BG Wealth Group

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In an era where women control and are gate-keepers to a significant portion of global wealth, the opportunity to harness this financial power for generational wealth creation is immense. Real estate investing, a traditionally male-dominated field, now presents a unique opportunity for women, particularly in legacy planning for retirement.

The Economic Force of Women

Women today are not just participants in the global economy; they are a formidable force shaping it. With a third of the world’s wealth under their control, women are increasingly influential in financial decision-making. This influence is growing exponentially, with women adding an astonishing $5 trillion to the global wealth pool annually, a rate that outpaces the overall growth of the wealth market. This surge in wealth accumulation by women marks a significant shift in the global economic landscape, presenting new opportunities for wealth creation and management.

The Wealth Management Gap

Despite their growing economic prowess, women face a stark disconnect in the wealth management sector. A comprehensive global study by BCG highlights a glaring issue: the wealth management community largely underserved women. The industry, steeped in broad assumptions about women’s financial preferences, often delivers services and messages that are perceived as superficial or patronizing. This gap in service not only undermines the financial potential of women but also overlooks their unique needs and aspirations in wealth management, a critical oversight in an era of rapidly increasing female wealth.

Real Estate Investing as a Solution

In this landscape of missed opportunities, real estate investment emerges as a powerful tool for women to build and sustain generational wealth. Real estate, known for its stability and potential for long-term growth, offers a tangible asset that can serve as a cornerstone for retirement planning. BG Wealth Group stands at the forefront of this revolution, empowering women to leverage real estate to their advantage. With a deep understanding of the market dynamics and a commitment to personalized strategies, BG Wealth Group demystifies real estate investment for women, guiding them to make informed decisions that align with their goals for wealth accumulation and retirement security.

BG Wealth Group’s No Barriers Approach

Recognizing the untapped potential in the women’s segment, BG Wealth Group goes beyond traditional approaches in wealth management. Our focus is not solely on retirement planning but on the creation of generational wealth—a legacy that extends beyond the individual. By understanding that this segment is not just a marketing opportunity but a vital demographic deserving of dedicated service, BG Wealth Group personalizes its approach. We cater to the unique needs and priorities of each client, irrespective of gender. Our strategies in real estate investment are designed to empower women to not only secure their financial future but also to establish a foundation of wealth that benefits generations to come. In doing so, BG Wealth Group aims to make the 2020s a defining decade for women in wealth, rewriting the narrative from being underserved to leading the charge in generational wealth creation.

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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.