Why Cacoeli Investments

We are a real estate asset management firm that is on a mission to help people preserve capital and create wealth with lower-risk and stable investment opportunities found in real estate. We primarily focus on apartment complexes. At times, we may invest in shorter-term but profitable development project that meet our stringent screening investment criteria.

We add value to the buildings, offer quality rental suites to our highly selected tenants and subsequently at market rent, and at the appropriate time, we either sell or refinance the buildings in order to maximize the rate of return offered to the investors.

Fundamentally, we invest in growth areas that offer the best return of investment for our investors.  In the past decade, we had been focusing our effort in Kitchener/Waterloo areas in Ontario, Canada. Going forward, we are expanding into other high-growth areas in both Canada and United States.
Cacoeli Asset Management plays the role of Deal Sponsor/Real Estate Expert.  It means that in order for Cacoeli to cash in on an investment, we must learn how to and then diligently complete the following list of tasks. We mainly get paid based on the performance of the investment. If the investor does not make money, we do not make money. To make this happen, we must:

  • Conduct in-depth research on the growth areas in which we invest our time and money
  • Access and tap in to our real estate power team.  Building a team of these professionals takes years and many thousands of dollars in fees.  Our team includes professionals such as top mortgage broker, realtor, real estate appraiser, different lawyers for specific purposes, professional property manager, accountants specifically with real estate focus, etc.
  • Complete the property search and conduct the property due diligence
  • Write offers, determine the sensible offer price, negotiate terms and conditions that create win-win for both seller and us, finalize offer
  • Secure financing and sign required personal guarantees for mortgages
  • Structure the deal for flexibility and protection of all parties
  • Select competent property management, act as the primary interface to property manager, manage rents and adjust rents frequently with market realities
  • Keep the books in order and report on a timely basis to the investors
  • Be the leader of the marching band.  It means knowing when to apply a team member’s unique talents to the issue at hand can solve problems faster and create a peace of mind
  • Execute flawlessly the detailed business plan of the property and provide regular updates
  • Maximize the investment’s exit strategy and know when to reap the rewards of our work
  • Provide education to potential investors on the merits in real estate investment

What is the typical size of the apartment buildings and Why is it better than single family properties?

We target multifamily apartment buildings with suites ranging from 40-80 suites at the moment. Compared to single-family properties, multifamily apartment buildings provide a lot of tremendous opportunities that are not otherwise available to single-family properties. Below are a few of the benefits:

  • Economies of scale
  • Predictable building values
  • Financing largely depends on the strength of the properties’ income rather than the strength of the borrower’s income
  • Stable and strong cash flow
  • Risk of lost rent as a result of vacancy is minimized on a per suite basis

Investing With Cacoeli

The qualification process follows the sequence described below:

  • Set up a call to go through qualification questionnaire to ensure our goals and objectives are aligned with the investment strategy and opportunities.
  • A Term Sheet is provided to the investors who express serious interest. Upon signing, a partnership agreement will be provided to the investors based on the provisions in the Term Sheet. We strongly recommend the investors to seek legal counsel on the Term Sheet before signing.
  • A Proof of Fund (“POF”) is required to demonstrate the commitment of the investors in investing with Cacoeli. The initial requirement for POF upon signing is 1/3 of the investment. The fund is then deposited in the trust account of Cacoeli’s lawyer. Detail on deposit requirement is discussed in the offering materials.
In addition to seeking independent legal advice, an equity investor is required to invest only his/her money and minimal time for due diligence on the properties.
A limited partnership is set up for all investors for property acquisitions. The benefit of a Limited Partnerships allows the liabilities to be limited to the assets of the partnership only. In addition, there is property insurance in place that addresses liabilities that are common in the real estate rental sector.  In a nutshell, no personal asset will be impacted should a liability arise.

In terms of risks, as with all other investment products, there is a risk of losing your investment.  However, Cacoeli works very hard to make sure we choose the right cities to invest in, right properties with positive cash flow, and right time for the right exit strategy.  Since our profit-sharing model is structured in a way that the principals of Cacoeli receive their share of profits only after the investors receive their investments, investors are essentially quite protected.  In other words, Cacoeli only profits after investors profit.

We aim to generate double digit return on investment each year on average over a 5-10 years of investment horizon.  This return includes cash flow, principal paydown and a reasonable percentage of capital appreciation.  Although we cannot guarantee the rate of return, we are confident that we can deliver the results as projected.  Please see our past project for reference.
We provide quarterly review/update of the property including the financial performance of the property as well as the general landscape of rental markets in which the investment is situated.  We encourage all investors to contact us with any questions they may have regarding the investment.  All documents such as property inspection reports, mortgage statements, engineering reports, appraisals, offers to purchase and large capital improvement invoices are all available for investors in a password-protected area.

Again, we are only a phone call or an email away.  And we aim to respond to any query within 24 hours upon receipt of your question.  Remember, we will never leave your questions unanswered.

Typically there is a 18-24 month period called transition period in any purchase of a multifamily residential property right after we take over the property.  During this transition period, we will carry out all the activities that aim to increase revenue and reduce expenses, improve the overall building appeal in order to dramatically increase the equity of the property and cash flow.  We aim to provide cash distribution beginning year 2.

At the end of 1st year, an annual review of the property will discuss the cash flow distribution based on the forecasted cash flow for future years and current cash position.

We generally hold all properties for a minimum of 5 years.  Realistically, in order to maximize return on investment and take advantage of the growth markets, we strongly suggest to hold the properties for 7-10 years unless our research on the real estate market indicates an earlier exit is warranted. The investment period of each project is described in the marketing package.

Am I Qualified to Invest?

Depending on your province of residence, the provincial securities commissions require all investors must qualify as accredited investors, or invest a minimum amount, or be well known by the principals of Cacoeli Asset Management.

An Accredited Investor refers to an individual who owns net financial investable assets of a minimum of $1 million (excluding principal residence) and earns income greater than $200,000 in the past two years.  For couples, they are required to have net assets of at least $5 million and total income of more than $300,000 for the past two years.

If the criteria of an Accredited Investor are not met, individuals can still invest with a minimum of $10,000 as the investment amount or $30,000 according to the new regulation that took effect in January 2016, or are friends, family members/relatives, business associates known by the principals of Cacoeli.

Please call for detail.