Focus Liberty Real Estate Investments | Frequently Asked Questions

Should I consider an out of town investment?

A. Focus Liberty looks for cash positive properties to invest in. In many cases to find a good investment we must look where the "fundamentals" are strong and frequently these properties exist outside your home town.

How do you know the current market value of the property you are interested in purchasing?

A. So as to maintain integrity, Focus Liberty obtains independent, comprehensive appraisals which are a component of the company's due diligence process. These appraisals are of course made available to all our investors.

How reliable are your cash flow projections?

A. Focus Liberty believes it is better to take a conservative approach when determining cash flow projections. We make every attempt to provide accurate information to our investors. All our projections are based on our past performance and from this we have developed calculations that are comparable to current properties. All projections are exactly that, projections. There are no guarantees due to outside economic forces. We can not predict the quality or success of an investment property; however we can assess and present the information an investor needs to consider.

How do you go about selecting suitable properties?

A. Focus Liberty reviews hundreds of potentially suitable properties annually and decides on a select few properties each year. They must meet the strict Focus Liberty criteria. Using our previous business experience we've developed spreadsheets and stringent formulas for determining a properties ability to produce positive cash flow and of course economic outlook of its location.

I want to speculate on an investment property for a quick profit, how can your company assist me with my goals?

A. Focus Liberty Investment's business model is based on the premise of carefully identifying and acquiring strategically located real estate and then holding this investment for the long run. We are not a get rich quick company, so unfortunately we won't be able to help you with your current goals. Although some of our competitors might help you.

Why do I need to utilize a company like yours?

A. Investing in real estate can be very time consuming. Think of all the time and money you spend on up keeping your home. Well an investment property requires the same amount of work if not more. The average investor does not have all the time and resources of a company such as Focus Liberty. We provide a “hands-off” solution to any investor looking to own investment real estate. Our team of professionals include: home inspectors, lawyers, professional property managers, private and public lenders, and contractors. This is our business, if we don't produce results we don't make money.

How do I go about arranging financing?

A. We have access to a broad range of both private and public lenders. You may want to consider using your RRSP as investment money. This way you will receive both the tax deduction as well as a fixed rate of return on your investment. As with any RRSP, your investment will be secured by real property. You may also consider using your Line of Credit or even cash in the bank.

If the rate of growth is less for real estate, why is it worth so much more after 25 years?

A. Real Estate is a Leveraged Investment. While a bank would never put up 75% of the cost for an investment in stocks, bonds or mutual funds, a bank will provide 75% of the cost for an investment property, or even 85% if it is CMHC insured. Banks do not like to take risks; hence they consider a leveraged stock investment to be risky.

Well-researched, leveraged real estate investments, on the other hand, are not considered to be as risky because they are secured by real property - hence the name "real" estate - unlike stocks which often use factors like P/E ratios or projected future earnings to arrive at some share price. Remember ENRON? They hid details about their debts in so called SPEs (Special Purpose Entity) to show higher profit.