Thanks to Rav for taking the time to share his story with us!
I have no financial relationship with Rav to disclose. However, I am currently invested in one of Greybrook Realty’s investment deals.
Tell us about your background
I got bored very easily in high school and so I was put in a co-op and I was fortunate enough to spend much of my school days in a very large real estate brokerage at the age
of 16. I bought my first property that year with my mom, and never looked back. I have now been investing in real estate for 31 years. I started out like most investors, with buy & hold properties, and now exclusively invest passively in land development which is taxed actively but my work is passive to nil because I’m Joint Venturing with developers
and my responsibility is only to invest funds.
Describe one of your real estate investments
One land development deal that I recently exited was
take. Once we serviced the land in preparation to build, the project was acquired by a foreign developer just over 2 years into the project. Though the plan was to complete the development and then exit, the option to sell to the foreign developer made more sense once the opportunity arose and I ended up making over 40% per year on my investment.
Where is the property?
This particular project is located downtown Toronto on Lakeshore Blvd.
Are you the active or passive investor in this investment? How did your partner find this investment?
I am a passive partner. The developer approached Greybrook Realty Partners (of which not only am I an aggressive investor in but also VP Business Development) and
proposed the project. The developer-partner’s job to look for great opportunities and then they let us, at Greybrook Realty Partners, know of them. Then Greybrook does their own vetting and due diligence before sending the deals out to the Greybrook Investors.
What was the risk of this investment? What was the security?
The investors, for all intents and purposes, are investing in the land portion with
A couple of potential risks could be:
1) Time: if the value of the land were to drop we would wait for the value to come back up and the project would not be a 4.5 year project (for example) and may be a 5.5 year project. Therefore, the risk would be “time”.
2) Illiquidity: not so much a “risk” but this is not an investment where you can
How much was the original investment? What is the breakdown of your/partner’s
The investment amount was $200,000 and my return was north of $360,000 including my investment amount just after 2 years.
What was the annualized ROI? What is the breakdown of the ROI?
Profit after just over 2 years = $160,000
Return on Investment over 2 years = Profit (160,000) / Investment (200,000)
Return on Investment over 2 years = 80%
Annualized Return = 80%/2 years
Approximately 40% Return on Investment per year
When did get your original investment back?
We got paid out after the project was sold, just over 2 years after the project started.
What did you like or didn’t like about this particular investment? Would you recommend this investment to your friends/family members? Any advice?
This type of investment is not for everyone. It is for accredited and/or eligible investors that are looking for a way to grow their capital. Furthermore, what I like about this is most of the investments allow for registered funds such as RRSPs,
If any reader wants to contact you, what is the best way to contact you?
Please leave any questions/comments for Rav below. Thanks!