Canadian Investors – Have you ever thought about Investing with a Commercial Asset Management Company? We recently had a chance to connect with successful investor – Richard Crenian – who explained the “Ins and Outs” of commercial investing in Canada. This is what he shared with me:
Real Estate Investment Firms
“Certainly, six years or so ago, at the heart of the Great Recession, the willingness of Canadians to invest a greater portion of their portfolio – or even any portion of it – was at a low. Markets were reeling and people were not just fiscally scared, they were doubting the core fundamentals that the financial markets rest on.
But, in the past several years, as the economy has slowly clawed its way out of the Great Recession, Canadian’s portfolios have similarly seen a steady uptick in value. Many Canadians are returning to the idea of investing their assets. But there’s still a notable difference in the state of mind of investors in this post-recession climate.
Many average investors are considering alternative sources of investment to stocks and bonds and the other tools offered by traditional investment vehicles.
Simply recall the falling out of the markets in 2008 at the start of the recession, the sudden withdraw of capital and the effect this had on people’s portfolios. It’s no wonder investors tiptoeing back into the investment frame of mind are looking for alternatives.
Indeed there are other investment options. One can invest in property, art and even coins and wine. One can also invest in companies that purchase and manage real estate properties.”Richard Crenian, then continued to explain more about commercial asset management companies and their benefits to investors:
“What these real estate investment companies do is use the capital you give them to purchase real estate assets; either on the residential side of the market, such as purchasing housing or condominiums, or on the commercial end of the market, such as the purchase of office complexes or retail complexes or shopping plazas.
One of the incredible values that real estate investment firms offer is a tremendous amount of industry experience and knowledge. Many real estate firms have the knowledge and experience to know what a wise investment is and what to stay away from. In many respects, that makes putting your assets with them a much safer and potentially financially rewarding option.”
Real Estate Investor Education
Like any investment opportunity, an individual would be much better off having a bit of knowledge under their belt. REDEV Properties is a Canadian-based commercial real estate investment firm. As an experienced investment firm, it has over 25 properties under its management. It’s founded by Richard Crenian who truly values the idea of investor education and knowledge.
“That’s one of our jobs as a responsible company,” says Crenian. “Not only are we responsible for providing a return on investment for our investors, through our asset purchase and management process, we’re also responsible for making sure our investors understand what they’re putting their money into.”
This point about investor education made by Crenian is indeed a valuable one, especially when considering the complexities of commercial real estate investments.
After all, do most people unfamiliar with the commercial real estate market, know what terms such as ‘non-recourse mortgage’ or ‘triple-net lease’ mean? Probably not. And yet many people will favor trust over knowledge and put their money in organizations or in markets that they are dangerously unfamiliar with.
Richard Crenian succinctly sums up the point: “That’s exactly what we don’t want to have happen. It’s great that investors trust our knowledge and experience in the commercial real estate market. We want that. But, we also want our investors to know what we’re doing with their money,” says Crenian. “Commercial real estate in particular is a fairly complex market and that’s one of the reasons why we make an effort to educate our financial backers on the fundamentals of the industry – that’s an important part of our process.”Editor Note: This sound advice is good for ALL real estate investors – Take the time to get educated or work with a reputable company that has a strong footing in the area that you wish to invest in!