We have yet to come across an investment vehicle stronger than real estate. Here's how we help, and the VIC Framework we use to explain how it builds wealth.
Monthly events, webinars, live training and networking with a group of like-minded investors who want to learn how real estate can build a secure financial future. Includes one-on-one coaching, monthly meetups and virtual learning.
We're active, licensed real estate agents. We become your investment realtor and coach and guide you every step of the way: choosing a strategy that fits your goals, analyzing deals, and connecting you with our partners. There's no extra cost for our coaching while we're your realtor.
Invest from home while an experienced team does the work, through VIC Capital Partners.
Available to accredited investors only. We always talk with you first; any investment is then completed through an exempt market dealer.
Real estate pays you in more than one way at the same time. We group those ways into three goals, in the order we plan for them: protect first, then grow, then optimize.
The foundation. Income that covers the property and pays down the debt, whatever the market does.
The growth. Borrowed money and rising values working on your behalf, and equity you can put back to work.
The edge. Keeping more of what you earn, and finding new ways to add value over time.
Appreciation is never certain, so we never build a plan on it. We build on what a property does every month.
We look for properties that are likely to cash flow well. That means each month, after the rent comes in and all expenses are paid, there's money left over for you to decide what to do with. Positive cash flow is what lets you hold through a soft market instead of being forced to sell.
Every month your tenants' rent pays the mortgage down, so your wealth grows while your debt shrinks. Even if a property doesn't appreciate at all, rent that covers the expenses still pays down the loan, and that's a real gain.
With the foundation in place, these are the levers that grow your net worth faster than saving alone ever could.
As a property rises in value, you build wealth simply by owning it, as long as the mortgage and expenses are paid. Over long periods, property values have tended to rise with population, incomes and the cost of building. We treat it as the bonus, not the plan.
Leverage is one of the most powerful parts of real estate. On a $300,000 home you'd typically put down 20% ($60,000) and borrow the rest. As the property appreciates, the whole $300,000 is working for you, not just the $60,000 you put in. That's why a modest rise in value can mean a much bigger gain on your own cash. Leverage works in both directions, which is why we're careful with it.
We're taught to pay down our mortgage and get rid of debt. But a mortgage on an asset that tends to rise in value over time works very differently from a car loan on an asset that loses value. As equity builds in a property, you can draw on it: to pay back your initial investment, to fund a down payment on the next property, or for something else entirely. That lets you keep growing without saving up a fresh down payment each time.
The investors who do best keep improving what they own and how they hold it, year after year.
RRSPs and TFSAs. Real estate is a widely accepted use for RRSPs, TFSAs and other registered plans, and most people don't know you can lend and invest using these funds. To use a registered account this way it must be administered by a third-party custodian. One we commonly work with is Olympia Trust Company, or talk to us and we'll help you get set up.
Depreciation. Depreciation is also an accounting benefit. It can reduce the taxes you pay today. It's recaptured when the property is sold, but a dollar today is worth more than a dollar 10 or 20 years from now. Ask your accountant how it applies to you.
With a tangible investment, you decide how to make the most of it. As cities grow they adapt to population and infrastructure changes, tastes change, and homes need updating. That gives investors the chance to add a unit, renovate or update their properties, which can increase both value and income.