Regent Project, Winnipeg

Before photos of Regent project!

At Arete, we strive to build long term relationships with many different individuals. Not only that but through our professionalism, well organised & transparent business practices we attempt to make first impressions last. In this case, the first impression lasted. A realtor from long ago who did an open “house/block” of an apartment with many individuals had supposedly taken note of us and our information and about 2 years later he had called us out of the blue with an apartment block opportunity. 

While this opportunity seemed both exciting & “easy” so to speak as it was on the smaller side, it quickly became complex. The rents had not been updated in quite some time, they were very low considering the unit types and shape and thus, financing for the asking price was not viable & lastly, their asking price was simply too high.

I will outline this later, however, we had to walk away from this deal due to the vendor being firm on price and unwilling to reduce the price. After months they finally came down to our price and we were able to educate them on how to correct their registered rents (which they did successfully) & then take over ownership. Now we’re taking over a building without any discrepancies and due to its well maintained units, some vacancies and below market rent, we will be able to quickly renovate, re-rent and increase the value of this building leading to a successful BRRR (in our world, the best investment strategy).


To view our project details in more depth, see below 👇

Investment strategy

Acquire, renovate, stabilize, & refinance.

Property highlights

Some project highlights that we’re excited about:

• Going to be completely open concept 1 bedroom suites

• 5 parking stalls

• We’re able to add our amenities,

  • Side yard - serving as greenspace

  • Open concept, clean, bright and spacious unit

  • Dishwashers and full serve kitchens

  • Storage lockers

  • Stone throw away from all necessary downtown transcona shopping

• Bus stop right out of the front and a side yard serving as an outdoor space for tenants (being added)

Number of doors

8

Future exit strategy

Longer term hold. We believe the appreciation in Transcona and on a building like this, with the combination of it being recently built, major thoroughfare, cornerlot, etc. we intend on holding this for the long term. We will achieve a perfect BRRR (buy, renovate, rent, refinance) and be able to pull out all of our original capital while forcing appreciation.

Tips

• Never stray from your “standards”. In business, especially real estate, it’s easy to stray from our business standards due to emotions. In this case, we had to walk away from the deal (we were so close) and watch the building be offered for sale. Through our rigorous due diligence though, we knew it’d be a hard sale due to registered rents & rent roll backs being required. After several months or rather, every few months we’d get a call with a reduction in price. We held firm. Eventually, they came down to our desired price while we came up a little bit and this became a great acquisition.

• Know your stuff. It took a lot of time to explain what registered rents were, the fact that the rents were not in compliance & that we’d be required to correct those issues prior to possession. Due to our professionalism & transparency we were able to clearly explain the issues and how to correct them. This built trust and made the process much easier

• First impressions last. Whenever you show up, you never truly know who you’re going to meet & who’s watching. Show up enthusiastically, professionally and passionately. Ensure everyone knows who you are, what you do and how to get a hold of you.