COMMON SENSE REAL ESTATE INVESTING

Transcription

1 COMMON SENSE REAL ESTATE INVESTING Phone: Toll Free: #1 Nelson Street West, Suite 200A Brampton, Ontario L6X 3E4

2 STRATEGIC CANADIAN MULTI-FAMILY REAL ESTATE INVESTMENT The Company Pulis Investments is a The company is well positioned The refurbished units are multi generational family in the Exempt Market* focusing attractive to ambitious young owned private firm on three key Ontario markets adults, most of whom are committed to maximizing Hamilton, Barrie and new to the area and insist on returns through prudent Kitchener/Waterloo, where a comfortable, contemporary real estate investing. they execute an innovative lifestyle. business model. FOUNDED IN BRAMPTON, ONTARIO, BY BRIAN & KYLE PULIS. Growth & Income The company manages its Pulis Investments acquires properties directly to ensure underserved multi-family that there is no wavering from properties in these markets the tightly focused business Pulis Investments delivers and immediately conducts plan. This approach overcomes value with strategic acquisition renovations to help drive up challenges connected with and renewal of undervalued rents and property values. the common practice of apartment buildings and outsourcing key support townhome complexes. services. Qualified investors can participate alongside Pulis Investments with an investment as low as $5,000. Not intended to be solely relied upon to purchase securities. This brochure is for information purposes only and does not constitute an offer to sell, nor a solicitation to buy, any securities. This investment is only available to qualified purchasers under prospectus exemptions, including by delivery of an Offering Memorandum in certain jurisdictions. This investment is not a direct investment in real estate but rather in equity securities (trust units or limited partnership units). * Exempt market securities, under National Instrument , are securities issued in Canada that are exempt from prospectus requirements and therefore require different levels of disclosure from a prospectus offering.

3 The Directors The PULIS Strategy 1. Tenant profile definition BRIAN PULIS, CO-FOUNDER & CEO KYLE PULIS, CO-FOUNDER & PRESIDENT GARY PETERS, DIRECTOR OF OPERATIONS & 2. Identification of strategic cities Brian ran several successful Kyle has more than 13 years PROPERTY MANAGEMENT retail and service companies before turning his attention in 2002 to building a solidperforming portfolio of multifamily residential properties in strategic Ontario markets. of senior operations and real estate investment experience. He has an eye for picking prime locations and a knack for acquisitions in underserviced markets. Over the last two decades, Gary has owned and operated companies in the retail and service sectors. He also built and managed a real estate portfolio. 3. Property acquisition & value protection 4. Property rehabilitation Delivering great value to tenants with a disciplined focus, Brian has seen his portfolio grow consistently. He became a real estate investment coach and speaker who has received many awards, including the Michael A highly regarded speaker and contributor with many accolades to his name, including REIN s Leslie Cluff Memorial Award and Multi- Family Investor of the Year Award, Kyle serves on the REIN advisory board as well His expertise is in day-to-day operations: risk assessment and due diligence including regulatory issues, zoning by-laws and other legalities; operational planning and execution; and financial management. 5. Tenant-focused management & operational efficiency 6. Investment analysis & assessment Millenaar Memorial Leadership as the executive board of Gary is recognized for sharing Award from REIN (Real Estate the Brampton Downtown his expertise with SMEs, Investment Network). Seeing an opportunity to bring the success of his investment model to others, Brian founded Pulis Investments with his son Kyle. Development Corporation. He holds an honours business degree from Wilfred Laurier University and has served with the Canadian Armed Forces. volunteering to mentor small business owners and coaching young entrepreneurs. 7. Manage Portfolio to Maximize Investor Returns

4 Hamilton Kitchener, Waterloo, Barrie Not only does it offer a significant Hamilton is upgrading its Economic and lifestyle trends in Expanding infrastructure, Barrie is home to the youngest job market in administrative and public transportation by adding Kitchener-Waterloo and Barrie exceptional health care, excellent metropolitan population in industrial positions, it is home to a a new rapid transit system and present a compelling scenario education facilities and numerous Canada and is an ideal area rapidly growing medical research expanding its GO Transit services for astute real estate investing. government incentive programs for young couples looking to sector that is looking to take the to Toronto. Economic growth in these regions have helped make Kitchener- raise a family, while Kitchener- Recent initiatives and future plans clearly indicate that Hamilton is looking to shed its Steeltown image for good, rebranding itself as a place for a younger, more educated workforce to call home. city by storm. McMaster University, the city s largest employer, has built a world-class research facility attracting a young, diverse workforce. This project attracts companies in related fields looking to utilize these facilities Hamilton is now a viable option for commuters to Toronto and the GTA especially given the cost of rental housing in Toronto. The Hamilton Downtown Property Improvement Grant helps stimulate commercial and will gain momentum over the next two years, led by exports and business investment spending in manufacturing and high-tech, according to Central 1 s 2015 Ontario Regional Economic Outlook. Waterloo and Barrie prime areas for real estate investment. Transportation infrastructure upgrades are making the regions increasingly attractive to young families looking to live in a suburban setting with easy access to Toronto. Waterloo s robust technology sector continues to attract emerging talent. The increasing number of young people looking for affordable housing has translated to strong rental and resale markets in these regions. Hamilton is the ninth-largest regional economy in Canada. and capitalize on the cuttingedge research. residential real estate markets in the inner city. Kitchener-Waterloo and Kitchener-Waterloo and Barrie Kitchener-Waterloo and Barrie Barrie are creating jobs at a are expected to add 30,000 jobs are expected to add 30,000 jobs rate that outpaces all other over the next two years. over the next two years. regions in Ontario. Other findings in the 2015 Outlook: The regional unemployment The regional unemployment rate, already below the provincial rate, already below the provincial average of 7.3 percent, is expected average of 7.3 percent, is expected to shrink to 6.2 percent by 2016 in to shrink to 6.2 percent by 2016 in Kitchener-Waterloo and Barrie. Kitchener-Waterloo and Barrie.

5 Investment Highlights The Pulis business model is simple and effective: purchase under-managed and undervalued rental real estate (apartment and townhome properties) in prime markets, implement strategic renovations to increase revenue, use rental revenue to cover costs and acquire more properties, and operate the buildings while earning profit through property appreciation, mortgage pay-down and positive cash flow. The company s in-house, hands-on approach ensures that projects are completed in a timely manner and with a steadfast commitment to meeting or exceeding expectations. The company is well positioned in the Exempt Market, through which investors realize the advantages of multifamily real estate investing while avoiding the volatility of public markets. HIGHLIGHTS: Long-term growth with preferred income potential Minimum investment $5,000 for accredited or eligible investors Eligible for RRSP, RESP, RRIF, LIRA, TFSA & cash account 93% profit share Target returns: 10%+ annualized Available to qualified Canadian investors Targeted returns are not guaranteed and are subject to performance assumptions and risk factors, including real estate and financing risks that are summarized in the Offering Memorandum, which may cause actual results to vary materially. Any forward-looking statements herein are subject to the assumptions and risk factors stated in the Offering Memorandum. In the Canadian provinces and territories (other than British Columbia, Alberta and Quebec) this brochure may be deemed to be an offering memorandum. If an offering memorandum contains a misrepresentation (which includes a misstatement of a material fact), you may have statutory rights to sue for damages or rescission of your investment depending on the law of your province or territory. These rights can be lost if your do not commence your claim within certain limitation periods. For more information regarding your rights, refer to the Offering Memorandum available from Pulis Investments and securities legislation and consult with a lawyer.

6 Traditional REIT Investor ACQUISITION RENOVATION STABILIZATION NATURAL APPRECIATION Cash LP investors will receive T5013 tax slips that can be PULIS REAL ESTATE offers investors a INCOME used as tax deductions on their tax returns. Qualifying tax flow-through items for LP cash investors may include: tax-efficient strategy. VALUE the PULIS Investor The Pulis Advantage Investors in Traditional Real Estate Investment Trusts (REITS) generally only have the opportunity to participate in properties that are already producing stabilized income. They receive monthly or quarterly income distributions from the rent that is generated and realize modest growth over time as the value of the properties naturally appreciate. Pulis Investors have the opportunity to invest much earlier in the process. Participating from acquisition through rehabilitation, Pulis investors have the potential to experience the full appreciation of the real estate assets as they are transformed from underperforming to highly desirable rental properties. Pulis investors will realize this growth by way of unit value increases as buildings are re-appraised and re-financed over time. Pulis investors will also receive quarterly income distributions once the portfolio becomes cash-flow positive. Not intended to be tax advice. Read the Offering Memorandum before investing and consult with your own professional tax advisers. Deduction of 20% per year over 5 years straight line Mutual fund trust and limited partnership launch costs Securities legal fees Accounting Audit fees Consultants Deduction of 4% per year (added to depreciable cost of building) Property acquisitions Due diligence Real estate legal fees Consultants Environmental studies Inspections Land transfer taxes 100% deduction (day to day trust & LP operations) Property acquisitions Due diligence Real estate legal fees Consultants Environmental studies Inspections Land transfer taxes Limited partnership offers cash investors excellent tax advantages Limited partnership offers long-term income and equity growth Limited partnership offers opportunities for intergenerational wealth transfer and income splitting Flow-through losses generated in first 3-4 years

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