Frequently Asked Questions:

The Simple Investor was founded on the belief that everyone can, and should, own investment real estate.  Many are hesitant to invest because of lack of time or knowledge.  We provide clear education to our clients to demonstrate how investment real estate can generate tremendous returns over time; while providing financial security and freedom for you, your family and for generations to come.
We invest alongside you.  The Simple Company owns units in every development, so you can be assured we will be looking after your investment as if it were our own.

The Simple Investor purchases existing apartment buildings or townhome complexes that meet our stringent criteria. We initiate and/or complete the conversion from apartment title to condominium title, which adds value to the properties. We sell the fully titled, tenanted properties to the investor.  Through the Simple Fund, our management system offers a complete “hands-off” approach to the investor, so you can focus on life while your investments grow.

For a small monthly fee, The Simple Fund covers all aspects of the management of your unit.  We cover repairs, work orders, tenant turnover, unpaid rents, issuance of notices, LTB matters, advertising & so much more.  The investor is not involved in the day-to-day management of the property.
Most importantly, The Simple Fund does something that no other company does.  Your monthly rent is guaranteed each month, regardless of vacancies.  Even if your unit is vacant, you still receive your rent.

The law requires a minimum of 20% of the purchase price as a down payment on an investment property. Some financial institutions may require a higher down payment based on their own internal policies, so make sure you check. Some folks will use a home line of credit to obtain the down payment, and the interest on that is tax deductible. You cannot use RRSP money under the first time homebuyer’s plan, as that is strictly for the purchase of your first home, not an investment property.

Absolutely! Most people feel more comfortable using their established contacts, however we have referrals for both legal and financing that have worked with us and our clients in the past and know our product well. The choice is yours.

YES! You have 100% title and ownership to the property. Our business model is built on a long-term hold strategy, but we realize that life happens. We strongly recommend holding for at least 3-5 years in order to benefit from equity increases and mortgage pay down, but you are free to sell at any time, should the situation arise. If applicable, we can often help the investor navigate to find alternatives to selling, such as using the equity (Leverage 2 Last) in order to maintain the long-term ownership benefits.

The short answer is no. Our business model is built on the premise that your time is valuable, and rather than manage your property, you would rather be doing more important things. All of our properties are fully managed on your behalf, and your rent is guaranteed; something that self-management can never achieve.

Should you or an immediate family member wish to move in, you would need to follow the proper procedures as outlined by the Residential Tenancies Act. There are specific forms and notice periods that must be adhered to prior to owner occupation of an owned rental unit. For instance, if the tenant has a lease, you cannot remove them during the lease period.

There are basically three types of insurance involved. The Condominium Corporation insures the buildings, grounds, exterior, mechanicals etc. This is paid for through your condominium maintenance fees. We strongly advise but cannot force tenants to obtain personal contents insurance. The remaining insurance is “unit owner” insurance which you must have in place on your property. This insures the part of the condominium that YOU own, which is from the walls in. We have obtained blanket policies at excellent group rates for all of our owner clients for their units. This amount is deducted once annually from your rental distribution.

We guarantee your rent for as long as you own your unit and are contributing to The Simple Fund. Our initial Management Agreement is for two years and is in plain English, and it spells out clearly our obligations to you including the amount of rent you will receive and the repairs covered. The Agreement renews annually after that, and we implement rental increases as allowed by the province each year.

We are not allowed to disturb the tenants unless it is for something required by law or for financing. They must have what is known as “quiet possession”. You can arrange through our office a site visit and can be shown a vacant unit (if there is one available). When you purchase a unit, your bank WILL conduct an independent appraisal of the specific unit you are buying to ensure the value is there for lending.

Our management includes all aspects of property management, including rent collection & distribution, tenant management, repairs & maintenance, Landlord Tenant Tribunal appearances & much more. You do not have any dealings with your tenant or the management whatsoever. We also take care of all building & grounds maintenance, garbage removal etc.

Since these are true investments, and not speculative sales (buy & flip), the intent is a long term hold strategy and investors know that over time, the markets go up and any adjustments can be ridden out. The rent you receive has no bearing on the market value of the property, and the mortgage continues to be paid down resulting in equity along with annual increases in rent, which again have no bearing on the resale value of your property. Perhaps the value doesn’t go up as much in any given year depending on the market, but you are still gaining equity through mortgage pay down.

Of course you can! Depending on our available inventory of course, but our goal is to help you build a solid portfolio of performing, cash flowing properties. It can start with just one property, and grow slowly over time, or if you are able to start with more properties, you will accelerate your portfolio growth.

Yes, but you are not utilizing the incredible power of LEVERAGE.  It is far better to leverage your capital across multiple properties, thereby increasing overall net worth.  We offer investors one-on-one meetings to review different strategies of how to utilize your cash to its highest potential.

Actually, some people quite bluntly ask Todd “What if YOU die?” (Seriously we’ve been asked this more times than we can count!) The simple answer is that you still own your properties and they are part of operating Condominium Corporations. The management company, SIREG Management Inc., continues on with the management. Also, keep in mind there is a Board of Directors, which can elect to hire a new management company should they choose.

Sorry but we do not manage individual properties. We only manage our multi-residential properties that have met our stringent criteria for operating costs and tenant selection which allows us to effectively manage our costs. A typical property management company that manages individual properties must charge a percentage of the rent and pass along all extra charges to their clients. Our model is very unique and we are not a standard property management company. We do have many clients who own and manage their own properties or have them managed by a third party, but also own units with us and see our model as an excellent way to add to their portfolio without adding to their workload.