Investors have the opportunity to become directly involved in Alberta real estate through Real Equity Limited Partnership I, our flagship investment vehicle.

Real Equity LP I has been created to provide individual investors an opportunity to participate in high-growth, low risk real estate investment in the Alberta market. We will seek to invest in a range of properties in both the commercial and residential sectors, providing our investors access to, and diversification through, a variety of well-selected real estate investments.

Our plan is to invest in a small number of larger properties (in the range of $3 Million to $10 Million) which will form the bulk of the portfolio asset value, and then also include several smaller properties within the portfolio.

Our experience has shown that the larger properties provide reasonable equity growth potential along with positive cash flow, whereas the smaller properties offer significant equity growth, but often lack the ability to provide positive cash flow. In this way, the overall portfolio will be cash flow positive, while still participating in significant equity growth.

We will seek to invest in a range of properties (primarily income producing), including office, retail, multi-family residential, light industrial and selected land investments. Our primary focus is in Calgary and the surrounding area, due to its unparalleled economic strength and current marketing opportunities.

The primary goal of the fund is to grow the investor’s capital as quickly as possible, with a 5 year target to double the investor’s capital. While we do anticipate that cash flow distributions will occur at some point in the future, this fund is not designed for the investor seeking a regular income.

Rather, it is designed specifically for patient capital – for investors who are able to place their capital for up to 5 years and seek to maximize its growth over that time frame. In particular, it is an excellent vehicle for registered retirement funds that otherwise would typically languish within institutional investment such as mutual funds, CDs or GICs.

The sound investment strategy and proven track record of the management help to reduce the risk to the investor, and allow strong returns to be generated without the volatility or risk of the stock market.

The Limited Partnership Structure

We have created our investment strategy around the Limited Partnership structure for a number of reasons:

Limited liability:
A key benefit to the investor is that when they invest through a Limited Partnership, their risk is limited to the capital they invest – they cannot be held liable for any further financial consequences or debts as a result of the investment. There is no personal guarantee or liability involved on the part of the investor.

Significant tax benefits:
Because the tax code treats Limited Partnership in a preferred method, it is possible to enjoy significant tax benefits as a Limited Partnership investor. One example of these benefits is that losses that may be incurred with the partnership during the start-up stages are passed through to the individual investors, allowing the investor to reduce their taxable personal income in that period - even though the investor doesn't actually pay any expenses out of pocket. As well, when profits are paid out, they are taxed at a preferential rate compared to earned income.

Proven structure:
The Limited Partnership has long been a tested and proven structure that is recognized by the courts and the taxing authorities, and is used extensively by sophisticated investors.

Full disclosure and reporting:
Because we are required to register with the Alberta Securities Commission and file formal registration documents including an Offering Memorandum, the investor receives full disclosure on the investment. In addition, the laws require the Limited Partnership to provide the investor proper reporting and accounting. Real Equity Limited Partnership I takes its responsibility to the investor a step further, and unlike most other LP funds of this size that only generate modest financial statements (unaudited, "Notice To Reader" statements with no reliance on the reliability of the financials), our LP provides audited annual financial statements on the operations and progress of the partnership as well.

Direct equity participation:
The Real Equity Limited Partnership I Fund gives you the benefit of reduced risk and tax benefits, but also gives you direct participation in the equity growth of the property. It is this component that gives you an opportunity to earn significant returns on your capital, since the management team of Real Equity Limited Partnership I have historically produced returns in the range of 50-200% per year - and no investor has ever lost a dime investing in real estate deals managed by the Real Equity Group.

As an investor, you benefit from this tremendous track record and enjoy the equity gains created by the limited partnership.