Sunday, July 22, 2018

What Strong Communication with Investors Entails

by JNeilas (writer), , October 21, 2014

Many have found that participating financially in real estate development allows them to benefit from the intelligence and expertise of real estate development companies.

Individual investors have plenty of options to choose from when it comes to avenues for investment. Investment in stocks, mutual funds, ETFs, bonds, even antiques – these are all legitimate paths for investment that individuals often use. And with the continued strength of the Canadian residential real estate market and the fast emergence of RRSP and TFSA eligible offerings, real estate investment has also become an increasingly popular investment choice among Canadian investors.

Many have found that participating financially in real estate development allows them to benefit from the intelligence and expertise of real estate development companies, while also contributing to the growth and improvement of their cities and local communities. These are both very strong points. However, with that said, like anything related to investment, investing with property development companies carries with it risks, and investors should come into their relationship with these companies with certain expectations firmly in mind.

Neilas Inc. is a residential development company committed to developing new, exciting condos and lofts in the Greater Toronto Area that show-off modern architectural and interior design concepts. Along with our corporate partners, Neilas Inc. invites individual investors to participate in each one of our property developments. After almost a decade of being in the business, our firm understands just how important communication is with our investors and how important it is that investors know every fine point in the investment relationship.

More particularly, we believe that every investor of ours should know the truth behind three critical points in the developer-investor relationship. One, investors should know whether or not the developer they are working with has a stake in the development project. Believe it or not, there have been instances in the past in which developers have had little stake, financial or otherwise, in whether a given development they have been leading would be completed and would be a success. When things turned for the worse during development, some of these companies simply walked away, leaving their investors with the loss.

At Neilas Inc., we hold a stake in every development project we pursue, which means that we are fundamentally driven in guiding every condo or loft we build to completion.

Second, we also like to advise investors to know whether or not they are investing with a developer versus one who has been hired for a fee. There’s a key difference here, and in many ways, this returns to the point of developers having a stake in the project, as mentioned above. Developers who serve as consultants on a project, simply put, have nothing to lose if the project fails. The same cannot be said for companies who are originators and owners of a new development.

In every one of our projects, current or past, Neilas Inc. has been the originator and owner of the project, which is one more point that should reassure our investors that we have a definite responsibility in leading our projects to completion and success.

Finally, another point that we like to highlight for our investors is the importance in knowing what the fees are to create, process, administer and market the new development. Not only will this information help investors understand how much of their money is going toward the actual property, it also will allow investors to gauge how open and honest the developer is. After all, marketing and administration fees have in the past been hidden in marketing literature, which is unfair to the investor. At Neilas Inc., we are up front with the total projected cost of our projects and openly communicate the viability of our developments to our investors.

In the end, our team at Neilas Inc. understands that the innovative developments we have built in the past – and those that we are currently planning to build – can only be achieved through the help of our generous investors. The health of our relationship with our investors is a strong barometer for the health of our company as a whole, which is why we are so firmly committed to maintaining an open and honest relationship with you, the investor.

About the Writer

JNeilas is a writer for BrooWaha. For more information, visit the writer's website.
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