Have you ever wondered who owns that office building on the corner? Or the mall with your favourite coffee shop? It could be your neighbour. It’s not unusual for a lawyer, accountant or local entrepreneur to hold real estate as part of their portfolio.

Last fall I had the opportunity to speak with Ryan Barresi, an Ottawa-based Commercial Real Estate Broker with Cushman & Wakefield. Ryan helps business owners, developers and investors acquire income properties.

Ryan typically deals with large retail, industrial, office and multi-residential buildings. I’ve had more conversations with my clients around smaller residential rental and income properties; large commercial real estate really isn’t my area of expertise. But I know it’s worth looking into as a potential and viable investment within your wealth plan. I also know it’s important to do your due diligence before jumping in.

So I reached out to Ryan, who shared his expertise on the March 19^th episode of I'm a Millionaire! So Now What? (listen & subscribe here).

 

Ryan emphasized that despite the windfall stories we hear, those enormous profits from real estate growth are NOT a sure thing. He compared real estate investing to:

 “when you go to the carnival and you’re trying to knock down the milk bottles with the softball… you watch the can fall and you think ‘well, I can do that’. Sometimes, we can’t always do that.”

Commercial real estate is a long-term investment that involves multiple people and multiple interests. You need to go in with your eyes open and be ready for surprises. Ryan says that the typical investor for syndicated real estate deals are entrepreneurs, business owners and professionals such as accountants, lawyers, and medical professionals.

“All of my investors … looked to commercial real estate as some form of income when they retire. They tend to be between the ages of 40 to late 70s. They don’t have a typical pension. They are responsible for creating a personal pool of savings.”

These are exactly the type of investors I described in previous blogs introducing the Individual Pension Plan. An IPP can be an important part of your financial freedom strategy, which may include a ‘post-work’ career and other assets like an RRSP, a TFSA, your Non-Registered Investment Portfolio (stocks/bonds/mutual funds/GICs etc), and real estate.

You can catch up on that 2-part dive into IPPs by jumping back to my posts on February 20, 2019 and February 27, 2019.

Creating your Personal Pension Plan is Step #6 of the Roadmap to Real Riches. And it’s the focus of my next Elevated Conversations event:

“IPP, Supersized RRSP for the Incorporated Business Owner/Professional” with Rachelle Murphy will be held here in Ottawa on Wednesday, March 27^th, 2019. Elevated Conversations happen over dinner from 5 pm to 7 pm at a fine establishment along Preston Street.

If you fit the following description, I encourage you to apply online to attend this event.

1. I’m an incorporated business owner, manager, entrepreneur or professional;

2. I’m between the ages of 40 and 71;

3. And I receive an annual T4 income of $100,000 or more.

And, if you want to know more about doubling your net worth by 200 with a Roadmap to Real Riches, visit colleenoconnellcampbell.com – specifically the Real Riches Roadmap tab to apply for your Prosperity Discovery Session.