Put your money into developing Ontario real estate.

Why invest in developing real estate?

To develop real estate means to take something and make it into something different or brand new. All development happens on precious land. Raw land opens up an opportunity to build new houses, condos, or plazas. For all other lands with existing structures, we “flip” — flipping is a term that means to re-develop the structure that is already there. Flipping houses is a common investment strategy. On a larger scale, an old industrial building could serve as a kid’s adventure park once cleaned up and rezoned. There are many ways to develop or redevelop properties and make a profit while doing so.

Take something old and undesirable and turn it into something new and desirable, and there’s an increase in value to the property and the community. Many people like new and shiny things, and the ones who can afford them will buy them — that creates momentum. Our economy depends on it. It creates work for businesses and jobs for individuals. The Greater Toronto Area draws a large number of new residents every year, and immigration to Canada is expected to keep growing. This will fuel our need to develop real estate.

One thing that has remained consistent is that there are not enough homes to fulfill the demand. Investing in anything that has high demand is, and always will be, a good basket to put some eggs in. It’s great for our investors’ bank accounts.

How does it work?

The money invested in real estate development is for a high return. With this comes more risk. Risk is in everything and comes with any type of investment. The question is, how can we manage the risk? The answer is to learn what you need to, to succeed. Every investor starts their journey knowing very little. The key is that one must be willing to learn and trust in the process. First, you learn how to begin from people who have done it well. Then you practice what you have learned by starting small. Over time, your money will earn you more money.

Investors can choose to be an equity partner or receive a flat rate of return. Investing as an equity partner means the returns are not guaranteed, nor are they capped at a fixed amount. Investors who choose to receive a flat rate of return earn an agreed rate — it all depends on the project and the terms of the agreement.

CRESI also runs a re-development and flipping program that equity investors can participate in. The projects and their terms differ from one to the next, and the specifics are set out in the agreement for each one. Did you know that flipping a house on your own is challenging, time-consuming, and costly? It also takes a substantial amount of capital to begin. So why not leverage other investors and our team? Real estate investing is all about leverage. Many investors invest what they can, then leverage other investors and/or other properties they own.

Not what you’re looking for?

This page is specifically about funding development and flipping as an investment vehicle — putting capital in, as an equity partner or at a flat rate of return. Two related pages cover the adjacent ground:

• Pre-Construction — buying a pre-construction unit directly from a builder, for your own portfolio or to occupy.
• Invest — building a long-term rental portfolio, one property at a time.

Start investing

Ready to put capital into an Ontario development or flipping project — as an equity partner or at a flat rate of return? Tell us how you’d like to invest and CRESI’s team will follow up to walk through current projects and terms.