Synergy REIN keynote speaker presents: How to Invest in Commercial Property Easier & Have More Profit Than Residential Property. (note Synergy REIN is a local Canadian R/E Investment Club) If I told you that you can have tenants that is willing to pay 10-15% more each year on their monthly rent payments, would that interest you? How about paying more for extra service you can provide such as janitorial service, landscaping or window cleaning (and get someone else to do the work)? If you think this only applies to commercial investment properties, you are missing out big time! Watch this video and find out how you can take advantage of the opportunity just like the wealthy real estate tycoons have!

1. The information contained herein (the “Information”) is intended for
general informational purposes only and should not be relied upon by
recipients hereof. Although the Information is believed to be correct,
its accuracy, correctness or completeness cannot be guaranteed and
has not been verified by either Aspire Holdings or any of its affiliates.
Views expressed in this presentation are based on research materials
available from sources that Synergy REIN(and associates) considers
reliable but neither guarantees, warrants nor assumes any
responsibility or liability of any kind with respect to the accuracy,
correctness, completeness, or suitability of, or decisions based upon or
in connection with, the Information.
All real estate opportunities come with varying degrees of risk and past
performance is not an indicator or guarantee of future results. Prices
can go up or down and current performance may be lower or higher
than any performance data quoted for comparisons.

3. * Father of 2 Awesome Daughters
* Serial Entrepreneur
* Broker Recruiter & Trainer
* Real Estate Investor
* My Personal Story

5. 1. Requires large upfront capital
2. Only the wealthy can participate
3. It is too complicated & difficult
4. Too much work
5. Don’t know where to start

6. 1. 15% Down Payment on CMHC - MUR
2. Single person hold-co or JV partners
3. Complicated = More Options to $$$
4. Hire or outsource work = write-off
5. Start small : Townhouse vs Warehouse

7. *Why own a warehouse vs a
townhouse? Both are strata.
*IF both are $325,000 each
*25% down payment
*Appreciation or Cash-flow?
*Yr 1 - $2,500
*Yr 3 – $3,000 (20%)
*Yr 5 - $3,500 (20%)
*Renew 5 year + 50% tax
*Talk about financing later…

8. • Interior decorating/painting done by tenants
• Longer leases 3-5 years + increasing rents
• Many leasing agents CBRE,Colliers,Cushman…
• CMHC financing lower than residential rates
• Flexible down payment source & No 90 Days
• Residential tenancy law vs business (hello
bailiff!)

9. • Cap rate / DCR = rare chance of bidding wars
• Assignments / Bird Dog = $$$
• Tenant vs tenant conflict? See lease contract
• If long term dentist vacates, how hard to
lease to a new dentist? + higher rent
• No more leaky toilet phone calls at night

10. Residential
*Emotional
*Neighbour sold for?
*Prestige (high-end
appliances,
hardwood)
*School/transit
*Land value
Commercial
*Logical
*Cap Rate = NOI
Price
*Local business traffic
*Location suited to
that type of property
*Income / rent rolls

11.  WiFi Internet in home vs Apartment X 20+
 Janitorial services & window cleaning
 Document shredding / offsite backup
 Onsite car-detailing & wash/cleaning
 Concierge service, catering, lunch delivery
 Outsource tech support, book-keeping
 Income source for your kids? Write-off?
 What other services can you provide?

12. •75% LTV
•Appraisal required
•DCR calculations
•Property & business
•Credit personal & Co
•Story & experience
•Max 95% LTV / 80%
•Appraisal optional
•TDS/GDS
•Income (employment &
debt) & 50% of rents
•Credit of personal
•Character of applicant

13. • Not advertised – “overall risk”
• “A” business is 1%-2% higher
• Amortizations max 25 years ***
• Lender fee of 0.50 - 1% avg
• Application/broker fee of 1-2% avg
• Extensive documents required

14. • Legal fees – higher than residential
• Appraisal fees – up to 5X higher than
residential
• Environmental assessment (Stage 1-3)
• Property Transfer Tax (Corp deferral only)
• Annual review and renewal fees of $250-
$2,500 (hidden in contract - beware)

15. • Much longer process (2-12+ months)
• Reports can take up to 6-8 weeks
• Longer time required for analysis
• 4-6 weeks for realtor subject removals
• Requires personal guaranty/corp
guaranty
• Same lender offer 3 different rates

16. *Qualifying for that $325K
townhouse vs warehouse?
*With 25% down payment
*2012 NOA - $10K
*2013 NOA – Zero income
*Which residential “A”
lender would approve?
*Commercial lender
Approved the warehouse
*3.15% 5 years fix term

17. How much do you save
on $3.4M over 5 years?
>>>$64,656 + $48K in
cashflow<<<

18. Build a Power Team:
 Hire a Commercial Broker
 Analyze your current situation
 Create investment strategy
 Connect with commercial realtor
 Start small or JV with other
experienced commercial investors

19.  Find a mentor
 Refer or co-broker to
commercial mortgage broker
 Start small and simple
 Be prepared to do more work
 Be paid what you’re worth!

20. I used to be terrified of heights and public speaking

21. Got Questions, want
these slides?
Text or Email me.
info@SuaTruong.com