Calling All Canadian Investors!

[Graeme Ford]

Hey BP! I am very intrigued by the BRRRR strategy and have recognized there are many distinctions between what is and is not possible in Canada compared to the US. Is the BRRRR strategy something that works in Canada? May sound like a dumb question, but if I am going to narrow down an exact strategy moving forward I need to know it is worth pursuing.

Thanks for any replies!

[Roy N.]

@Graeme Ford

The concept of purchasing a run-down, under-performing property (business) and forcing appreciation through modernization & revitalisation has been around longer than Branden and Josh's catchy acronym.   

It has been at the core of our approach for several years - as time goes on, we find ourselves acquiring properties (sometimes vacant) in greater distress - they require more capital, but provide greater opportunity. This past year we have bought a couple of rather derelict properties whose rehab will exceed the acquisition costs considerably, but our total costs will still be 60-70% of ARV by the time we are finished and well will have an efficient, updated building that fetches top-of-the-market rent.

Naturally, will be easier and more effective in markets with sufficient inventory and depressed, but rising, property prices.  In hot markets, like Vancouver and the GTA, where folks are paying top dollar for land (and demoing the existing structure), it's not likely going to be a rewarding venture.