Investor Q&A 

Riley Real Estate Ventures RRE Ventures is a real estate development company operating primarily in the low-rise multiplex building vertical. Working closely with our extensive industry network, our mission is to acquire undervalued properties, efficiently execute on our extensive renovations, stabilize the building at today’s market rent rates resulting in us refinancing or selling the property. The proven and efficient process will ensure that we can continually guarantee the capital returns expected from our investors. Timing and precision are two of the key drivers to ensure we can meet and exceed these expectations. Our experienced trades and control of the overall process helps to eliminate the unknowns that can lead to unexpected delays! All of which will ensure that we can continually guarantee the returns expected from our investors. 

Where does my investment go? 100% of your capital will go towards the funding of the subject property listed in your investor agreement. It will be used as part of the initial acquisition or towards the construction budget. 

Investment amount? Minimum requirement $50k 

Timelines return The time for full reimbursement including interest on all of our projects is expected to be 12-18 months. By acquiring existing multifamily buildings, we maintain control of the process and avoid and costly for delays with the committee of adjustment or other structural permits. Our goal is to keep the entire process to 12 months, but we’ve built in a 6-month contingency and therefore expect to meet all investor expectations. We also feel that with this relatively short-term project timelines, we will always stay ahead of external market conditions. 

Why such a high return? While we are growing the war chest, we require outside funding to help acquire the desired properties and needed construction to reach the goal and either refinance the asset or sell it at the forecasted market rates. The 12% per annum ROI will be offered for a limited time and we expect to become self-funding over time. 

Why isn’t everyone doing this? As this is investment is considered a Key Capital Raise, we are mandated to only offer this opportunity to friends, family and business associates. As we establish our track record with more projects under our belts, our friend and family referrals will grow, and we expect the list of investors will grow substantially! 

Investment Security By keeping control of the process and continuing to acquire existing multifamily complexes, there are limited risks. There are essentially three areas of exposure which are as follows: 

1. The Trust and Competency of the Company: You have been invited and made aware of this opportunity because you either know someone working for or have been referred by someone closely associated with the business. We are a legitimate company with a track record and an integral cog to our business is to ensure that our investors get paid in full and in a timely manner!

2. The Product/Business Model: As noted, by staying in our lanes and keeping to our core competency of buying undervalued, multi-unit properties, we retain full control of the process and should meet all of our milestones including paying out investors on time! We will provide you with a full proforma of the subject property so that you can review and analyze our due diligence to ensure you are aligned with our conservative financials.

3. The Economy and its impact on the Multi-Unit real estate market: In part as a direct result of US Federal Reserve holding on their lending rates, the Bank of Canada Target Forecast prime lending rate which is going to further reduce from its current 1.75% down to 1.25% in mid/late 2020 and expected to settle in at 1.5% through to the end of 2021 or early 2020. This means cheap money and a continued hot real estate market. Even if the economy changes over this period of time, we have alternate strategies to hold these well-positioned income properties for the long term while generating top cash flow and favorable capital rates. Additionally, Toronto’s growth strategy and population estimates continue to skyrocket which will continually put upward pressure on rental rates and ensuring massive returns for years to come. Once stabilized, these properties will re-finance nicely allowing investors to get paid out as per the expected timelines. 

Furthermore, this is not a new venture start-up or risky stock venture. We are an established real estate company with experienced employees, resources and business model and we are dealing with hard assets with market values that should not deviate from our forecasts. We believe this is as guaranteed an investment as you can get, especially with a 12% per annum return – the only thing more secure may be a GIC but will only yield a 2.5% return! 

Next Steps Once you are ready and have all your questions answered, we can arrange to execute the Investor Agreement contract and exchange the funds. This is considered a passive investment for a reason and we will simply provide you updates at a minimum on a quarterly basis and give investor insights along the way! 

Thank you for your consideration, 

Brendan Riley
Founder & CEO, Riley Real Estate Ventures Inc.