Frequently Asked Questions
We invest in multi-residential rental buildings. Particularly, we focus on residential rental assets that present opportunities for improvements. We also invest in development projects that offer strategic and competitive advantages to our portfolio.
We add value to our buildings and lease our quality rental suites at market rent. Then, at the appropriate time, we either sell or refinance the buildings in order to maximize the rate of return for investors.
Fundamentally, we invest in growth areas that offer the best return on investment for our investors. In the past decade, we have focused our efforts in the Kitchener/Cambridge/Waterloo area in Ontario, Canada. Going forward, we are expanding into other high-growth areas across Canada.
We get paid based on the performance of the investment. In other words, if our investors don’t make money, we don’t make money.
What is the investor onboarding process
The investor onboarding process follows the sequence described below:
- When a prospective investor expresses an interest to invest with Cacoeli, he/she will be required to complete an internal Know-Your-Client (“KYC”) form.
- Once the initial qualification conducted internally is met, Cacoeli will set up an introductory call with the Investor Relations team to understand the goals and objectives of the prospective investor and assess whether their goals align with Cacoeli’s investment strategy and investment opportunities.
- Marketing materials are then provided to the prospective investor for review.
- Once the prospective investor intends to proceed, he/she will be forwarded a 3rd party Exempt Market Dealer (“EMD”) for conducting further due diligence.
- After all the due diligence procedures are carried out, the prospective investor will be provided with a Subscription Agreement, Limited Partnership Agreement & the Offering Memorandum for review and execution. We strongly recommend that the prospective investor seek legal counsel prior to signing the subscription agreement.
- Once all the legal documents are signed and executed by the prospective investor and Cacoeli, instructions for depositing the investor funds will be communicated.
- All legal documents can be found in one’s Investor Account, housed on a third-party platform, where all communication activity is handled.
What are my responsibilities as an investor?
In addition to seeking independent legal advice, an investor is required to invest: his/her money and minimal time for due diligence on the properties.
What rate of return should I expect as an investor? Is there a guarantee?
We aim to generate an annual double-digit return on your investment, averaged over a 5-7 year investment horizon. This return includes: cash distributions and a reasonable percentage of value growth on assets under management. Although we cannot guarantee the rate of return, we are confident that we can deliver the results as projected. Please see our past projects for reference.
What communication will I expect to receive from Cacoeli after I invest?
Depending on the type of investment, we provide a quarterly or semi-annual review/update about the investment and its financial performance. Furthermore, Cacoeli produces a quarterly newsletter for all of our existing investors and anyone interested in knowing more about us. In this quarterly newsletter, we periodically provide the general landscape of the rental market in which the assets are situated and other interesting news that is relevant in our real estate industry.
We encourage all investors to contact us with any questions they may have regarding the investment.
Is there a regular cash flow payment?
Depending on specific projects, there may be a regular quarterly cash distribution. For our Investment Opportunity Fund, cash distribution is wholly dependent on the nature of the project and its business plan.
What is the typical investment time horizon?
Our investments typically have an investment time horizon of 3-5 years. Nonetheless, investment periods are subject to change on a project-by-project basis. When investing in multi-residential rental assets, it is recommended that your investment horizon be medium to long-term.
What is the typical size of the apartment buildings? Why are they better than single-family properties?
We target multi-family apartment buildings ranging from 50-100 suites. Compared to single-family properties, multi-family apartment buildings provide a lot of tremendous opportunities that are not available via single-family properties. Below are a few of the benefits:
- Economies of scale.
- Predictable building values.
- Financing largely depends on the strength of the property’s income rather than the strength of the borrower’s income.
- Stable and strong cash flow.
- Risk of lost rent, as a result of vacancy, is minimized on a per-suite basis.