2020 Properties

[carlosekkert]

Hi

I am wondering if any of you have experience with 2020 Properties / 2020 Investments. They are currently starting a investment fund called the `Canadian Apartment Fund` (RSP eligible) that will be used to buy properties with a leverage factor. www.2020groupinc.com www.2020investments.com

Has anyone had interactions with 2020 in the past? What do you think of their programs? I am looking for an investment vehicle (like 2020) that can give me some decent returns without micromanaging. They seem to have a decent track record.

Any thoughts would be welcome.



Carlos

 

[Donal_Ward_McCarthy]

Hi Carlos,

i do know of 2020 but have had no experience with them. If i were you I would ask to speak with some long time investors with 2020 and some newbies to see how their experiences have been. What have the returns been? How much do 2020 siphon off returns for administrative purposes? What`s their cut basically? If $100 dollars is made in appreciation, break it down as to what you get and where does the rest go? Where are they building/buying? Do your economic research to ensure they are going to get you best bang for your buck in the towns that have the economic prospect over the next 5 years.
Do their timelines fit your time lines? ask all the what if`s.
What if you need to bail and pull all your cash out etc etc. You are best to come up with these. View it as any joint venture you would consider, for example, do you have a good level of freedom as to the location and type of project you can put your money towards? Do you have strong exit clauses in your agreement. Can you modify the agreement with them or is it steadfast?
Considering it is a fund, this might be exactly what you are looking for. Question are you okay with this. How has your experience been with mutual funds etc.

I trust this helps, as with any advice, best to take all in, do your due diligence and sit with it yourself for a while and decide. Best you make the ultimate decision yourself.

Donal.

 

[navaz]

Hello Carlos

I have not purchased from them. In my earlier days, I use to find they provided good research and advertize properties for sale. I would go to their properties and buy some accross the road from them quite a bit cheaper and did well. It would be a senario of wholesale vs retail buying. I had clients that did invest with them and did not do too bad. Hope that helps

 

[jarrettvaughan]

Hi Carlos,

I have not delt with 20/20 but i am in the process of working with Platinum Properties which is in Vancouver (they are based on the same concept as 20/20). I have not bought a property with them yet (they will have some availible in the new year) but the experience and expertise has been great up to this point. If you would like more info, i am happy to put you in contact with my rep.

 

[gwasser]

Hi Carlos,

It looks to me that 20/20 is offering an real estate income trust (REIT) rather than the opportunity for you to buy real estate from them directly. As such they are not much different from other REITS that already trade on the TSX. So, in my estimate you are dealing with some kind of IPO (initial public offering) of a security that will trade in the securities markets.

My experience with IPOs is mixed, usually IPOs tend to be hyped up, especially if the market is hot! For the past 10 years I have avoided IPOs as much as possible. It is better to wait until they have some history, also prices tend to settle after a while to a lower more realistic value. Comparable REITs in the market with long track records are BoardWalk, Summit and RioCan. They tend to specialize in certain real estate types. Boardwalk owns mostly apartments in Alberta and some in Quebec. RioCan specializes in retail, i.e. shopping malls throughout Canada with some emphasis on Western Canada. They also own U.S. properties. Examples are Brentwood Mall and West Hills Mall in Calgary. Summit operates along a similar line as RioCan. RioCan is Canada`s largest Real Estate Income Trust.

Other ways to invest in Real Estate, and Clean Energy (Hydro Power) is through Brookfield or better Brookfield Asset Management (stock symbol is BAM). A very well run company which owns 90 billion or so in Assets: Real Estate throughout Canada (Bankershall and Gulf Canada buildings in Calgary) as well as in the U.S. (adjacent to World Trade Centre) and lately they have been investing heavily in hydropower in South America.

As such, this is truly stock market stuff and does not truly belong on this website. So, I`ll better stop.

Hope this was helpful.

 

[CalvinPeters]

I personally have a relative that has bought off of them several times and over several years, I am sure I can speak on his behalf to mention that it is truly a `retail` purchase. He made the decision based on the fact that he didnt have to do anything but his real job...and over a period of years the properties have returned a decent return. If you are return-sensitive you might want to JV in with a seasoned Investor and get a bigger `bang` for your buck, one of the most obvious reasons being that a JV partner might be able to tie in with equity-on-close so you get a better start out the gate. Just a thought.

As mentioned already, there is a lot of ways to invest, just pick one way and go for it.

cheers, calvin

 

[carlosekkert]

QUOTE (Nukav @ Dec 6 2007, 04:21 PM) I personally have a relative that has bought off of them several times and over several years, I am sure I can speak on his behalf to mention that it is truly a `retail` purchase. He made the decision based on the fact that he didnt have to do anything but his real job...and over a period of years the properties have returned a decent return. If you are return-sensitive you might want to JV in with a seasoned Investor and get a bigger `bang` for your buck, one of the most obvious reasons being that a JV partner might be able to tie in with equity-on-close so you get a better start out the gate. Just a thought.

As mentioned already, there is a lot of ways to invest, just pick one way and go for it.

cheers, calvin


Thanks everyone for their input,

Calvin what do you mean with `tie in with equity-on-close` ... for example do you mean later closing costs? I am just getting started in real estate investing and so I am not quite sure what that means.
I have looked into investing with a JV partner but the equity split with 2020 Properties is a 80/20 split versus most JV partners are 50/50 ... but I guess this might be a bit different in the sense that it is more like a fund rather then a partnership ...

 

[carlosekkert]

QUOTE (jarrettvaughan @ Dec 6 2007, 11:17 AM) Hi Carlos,

I have not delt with 20/20 but i am in the process of working with Platinum Properties which is in Vancouver (they are based on the same concept as 20/20). I have not bought a property with them yet (they will have some availible in the new year) but the experience and expertise has been great up to this point. If you would like more info, i am happy to put you in contact with my rep.


Jarrett,

I would love if you could give me a reference to your rep and his information. I will be sure to tell him that you recommended me to him. If you give me his name I will just call Platinum Properties and ask for him (this will probably be the easiest) ...