In today's episode of Investing to Win, Garret Wong talks with Cal Reich, a seasoned real estate investor specializing in multifamily residential properties and co-ownership. Graduating with a degree in Urban Studies and achieving a property management designation, Carl worked as a commercial real estate appraiser for 3 years in Southern Ontario while at the same time flipped homes on the side. He returned to Manitoba 14 years ago to run the family property management and investment business, in charge of 2000 units spread over 90 buildings. In addition to running the management side of the business, Cal became very adept at finding an apartment building, putting together groups of investors, then acquiring, renovating, refinancing and managing the individual investor relationships to ensure a successful asset.
With extensive experience in property management and a background in commercial real estate appraisal and house flipping, Cal brings a wealth of knowledge to the discussion. He provides insight into the co-ownership model and its distinct ownership structure, highlighting how it differs from joint venture agreements. Listen in to learn why he emphasizes the importance of strategic management for investment-grade properties. You'll gain valuable tips on finding and cultivating relationships with potential investors and building a reliable network.
Cal also talks about the process of identifying investment-grade properties and how to conduct a thorough analysis. He describes the example of a client who proposed an opportunity in a smaller town with a good cap rate and minimal adjustments, underscoring the importance of such opportunities. He provides advice on budgeting for major repositioning projects and explains the importance of understanding Tenancy Act legislation.
You’ll get an inside look into his project management agreement, which facilitates collaboration among co-owners, and emphasizes the need for transparency and periodic communication. As a bonus, he discloses his service fees and why he prefers to accept them in cash rather than in equity. Finally, you’ll learn how to deal with an owner's decision to exit a co-ownership project.
Join Garret and Cal for an insightful discussion on co-ownership, the importance of long-term value, transparency with all co-owners and why you should focus on properties that align with your investment goals.
Enjoy!
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