COMING EARLY 2021
Access a diversified portfolio of private Real Estate
without the hassle of being a landlord
FUND SIZE: $3-6M
ASSETS: SINGLE FAMILY RESIDENTIAL HOUSES
LOCATION: SOUTHWESTERN CITIES IN ONTARIO
TERM: 5 YEARS
MIN. INVESTMENT: $50K
AVAILABLE TO: ACCREDITED INVESTORS
Introducing a unique way to invest in single family real estate.
The housing market of Ontario is a stable asset class with compelling growth trends. But up to now, you either invested by doing all the work yourself, or you relied on REITS or large structures – which don't usually give you access to single family rentals.
This fund lets you access the security and growth in value of private homes, without the downside and headaches of being a landlord. Professional managers purchase, stage, rent and eventually sell a portfolio of houses, and the rental income from the properties pays for the operations and fund expenses.
As an investor, you benefit from the upside of the long-term capital gain from a portfolio of income properties, without the hassle and expense of managing it yourself.
The fund intends to buy, lease and hold residential houses while they appreciate in value – selling them at the 5 year term.
- Single-family rental homes
- Detached two-unit non-conforming rental properties
- 3 & 2 bedroom configurations
- Purchase price will vary by city
Purchase and sale
- Average purchase price: $550,000
- Average sale price: $782,533
- Appreciation (Annual): 7.5%
- Net rent (monthly): $3,430
- Vacancy rate: 2.00%
- Rental appreciation (Annual): 2.20%
Detailed financial assumptions to be provided once the fund starts officially fundraising.
Fast-growing secondary cities surrounding the Greater Toronto Areal, including:
Big data to generate alpha
The fund will leverage real estate expertise and proprietary software from Konfidis.
Konfidis's tech allows for efficient evaluation of the 40K+ active MLS listings – analyzing 100+ million data points in real-time to provide actionable financial projections.
Combined with a human layer of local, experienced real estate professionals, this system enables the fund to pick cities, neighbourhoods and properties positioned for the best risk-adjusted return potential.
Fully managed by professionals
Professionals purchase, renovate, rent, and eventually sell a portfolio of houses.
The rental income from the properties pays for the operations and fund expenses.
Sourcing and buying properties, legals, inspection, and appraisals
Insurance, renovations, and repairs
Tenant sourcing, leasing agreement, and payment management
Sourcing buyers, negotiations, legals, and closing
The fund will start accepting new investors in January 2021, and first closing of the fund is planned for Q1 2021.
The fund plans to fully deploy the capital within the first 6 months following closing.
The General Partnership (GP)
Real Estate expertise and property management
The fund will leverage expertise from Konfidis (a subsidiary of FirePower).
- Shael Soberano, CFA is the Chief Investment Officer of Konfidis Inc.
Shael brings a rigorous analytical and institutional discipline to the financial analyses he utilizes in driving investment decisions and direction. Shael developed and refined his financial expertise as a securities analyst and principal investor across a wide array of alternative investments, with a primarily focus on real estate.
Mr. Soberano is also a Principal of the Sharno Group of Companies, including as Chief Investment Officer of Sharno Group Inc., a privately owned independent principal investment group and family office focused on identifying strategic, value-add investment opportunities across a wide range of traditional and alternative asset classes and strategies. In addition, Mr. Soberano is the President & CEO, Portfolio Manager & Chief Compliance Officer of Sharno Capital Corporation, a registered Exempt Market Dealer and Portfolio Manager with the Ontario Securities Commission, and distributes securities in Ontario to eligible Accredited Investors.
Previously, Shael Soberano was Vice President, Senior Analyst at Vision Capital Corporation, a leading Toronto-based Hedge Fund manager focused on publicly traded real estate related securities. Shael first joined Vision Capital as an Analyst in 2009, shortly after its inception. He was promoted to Vice President, Senior Analyst in 2014, and was registered as an Advising Representative with the Ontario Securities Commission in 2017. With a wide range of roles spanning both business development and investment management initiatives, Shael’s contributions were integral in growing Vision Capital’s assets under management and contributed to its award-winning risk-adjusted performance over that period.
Shael is a CFA Charterholder and completed the Bachelor of Management and Organizational Studies Honours Degree with a Specialization in Finance at the University of Western Ontario. Shael completed the Partners, Directors, and Senior Officers (PDO) Course in 2019 and the Canadian Securities Course (CSC) in 2010, provided by the Canadian Securities Institute (CSI).
- John Asher is the President of Konfidis Inc with accountability for strategic direction, partnerships and operations.
John brings over 20 years of financial services experience in various senior executive positions. Most recently, John held the role of Senior Vice President and Chief Financial Officer for RSA Canada, a top 5 national property and casualty insurance company, responsible for the operational success regional investments, pension plans, corporate development and partnerships, actuarial, finance and legal. Previously, John held senior positions at The Co-operators, a national property and casualty insurance, life insurance and wealth management company as Vice President, Corporate Finance; Vice President Finance, Business Development and Corporate Actuarial including Chairman of The Co-operators Life Insurance Company Pension Committee. John’s mandate included the development of new products and services leading to homeowner fintech innovation, sustainable alternative investment policies and sustainable wealth management products.
Today, John takes his experience in alternative asset classes, investment diligence, technology and financial analysis to provide investors access to scalable residential real estate investing.
The fund's thesis is to buy properties and hold them for a 5 year term. The rental income from the properties is expected to cover all fees (fund expenses and operating costs).
After the 5 year term, as the properties are sold, Limited Partners get their initial investment back and their allocation of the profits from the sales (net of carry).
Investors will pay a one-time small setup fee. The rental income is expected to cover the fund's management fees.
After investors are repaid their initial investment, the fund takes a 20% carry from additional profits with a 10% hurdle rate.
We believe this approach ensures on aligned interests, with a focus on capital gains from the sale of the assets.
Please note: The information above is intended for the "pre-launch" of the fund only. We will share specifics about fees with potential investors once the fund officially starts fundraising.
Investing in the private markets, including in this fund, is considered a risky investment.
Risks include, but are not limited to:
- Impacts on demand: fluctuations in interest rates, reduced immigration, and more.
- Impacts on supply: lack of properties and/or resources development
- Tenant default and/or ongoing maintenance costs
- Market competition and getting outbid on properties
- Market fluctuation and uncertainty
- Changes in the law or regulations regarding the environment or other environmental liabilities