A developer envisions, creates, controls and orchestrates the process of development from start to finish. The developer takes on the greatest responsibility in the creation or development of real estate—and normally receives the greatest rewards. Typically, a developer purchases and controls a parcel of land, designs the development concept and plans, determines the marketing strategy for the property, obtains the necessary public approvals, arranges financing, constructs the structure, then leases, manages and ultimately sells the development. Developers work with many different partners along each stage of the process, including architects, city planners, engineers, surveyors, inspectors, financial institutions, lenders, contractors, sales & leasing agents and others.

Real estate developers play an extremely important role in controlling costs and in improving the efficiency and effectiveness of development projects. The best real estate developers are visionaries, looking years – even decades – beyond today’s world to take advantage of regional and city planning strategies to secure future projects. At their finest, real estate developers are entrepreneurs who seek out opportunity and drive it to reality, and in the process improve our communities and cities. Tomorrow’s retailers, professionals, manufacturers and employers will have a future home because today’s real estate developers had the daring and vision to foresee their needs.

Effective management of the development process requires experience, strong relationships with all the parties involved and a hands-on management approach by a qualified developer, such as Total Properties. Total Properties effectively manages and controls all stages of the development process – site selection, purchase negotiations, planning, zoning & approvals, design, market feasibility, construction/project management, site servicing, project marketing and sales.

The developments will be managed by Total Properties that specializes in the strategic selection, acquisition and planning of major real estate recreational development projects. Total Properties focuses on creating value from the very early stages of project acquisition and bringing them to completion.

A RELP is a popular form of real estate investing with many desirable features – including financial rewards, investment security, shorter investment terms and potential tax benefits. A RELP investor is spared any development management responsibilities, relieved of all liability for principal debt, personal guarantees, and in most cases can make an investment of any size. The General Partner is granted all decision-making responsibilities for the investment partnership, and assumes all liability for it. The other partners in the partnership are the Limited Partners – which means financial obligation is limited to their initial investment amount.

RELPs are commonly used for shorter-term projects and developments, and normally do not offer interim cash distributions. They are formed to take advantage of two types of short-term investment opportunities: Build-from-Scratch Development Projects; or Renovate-and-Sell Projects. It is the high potential for capital appreciation that makes a RELP an attractive investment. In most cases, profits, after expenses, development costs, and fees are disbursed to the Limited Partners.

RELP investments are generally not redeemable before a predetermined “liquidity event”. All the capital raised from investors and mortgage lenders is earmarked for the purchase of the property and to fund the development with the objective of increasing its value in the shortest time possible. The investor is normally in the partnership for the duration of the project.

Initially the focus will be on core opportunities available in North Shore (North and West Vancouver) – with specific attention to infill development opportunities.

Infill Development refers to improvements on land adjacent to and between existing developments; it is a highly effective way of accommodating increased population and growth in a community without expanding or increasing the boundaries of development.

Due to the complexity and uncertainty, as with any type of business venture, Land Development has a degree of risk that needs to be controlled and mitigated. Conversely, Land Development also carries with it a very lucrative opportunity for profits. The more effectively one is able to control and manage the uncertainties, the more predictable are the end returns and profits. Within the realm of new construction, some of the primary uncertainties revolve around demand and marketability, obtaining and managing construction finances, controlling construction costs and dealing with delays. In the context of a Limited Partnership, these risks are all controlled and borne by the General Partner.

Demand Uncertainty & Marketability

• At Total Properties, each project begins with a period of due diligence which includes extensive market analysis and research. Recent sales of comparable real estate, municipal and regional economic outlook, review of official community plans, demographic statistics and population growth projections are all factors that contribute to the current demand for the particular type of development proposed. By thoroughly researching and analyzing all factors, a developer is able to establish a price point below the market value where pre-sale units will be absorbed almost immediately. This price point is then used in the budget to project profitability and to make a decision to proceed or not.

Financial Risks

• Construction Financing is only granted upon a qualified developer providing the necessary corporate and personal guarantees and meeting all the development criteria established by the lending institution or financial partner. This includes achieving the desired threshold of pre-sales or preleasing for each development.

Construction Costs & Delays

• Construction delays which directly relate to increased construction costs – can be mitigated by establishing fixed price contracts and by partnering with a qualified developer and construction management group, such as Total Properties.

Limited Partners or investors should expect that as with any real estate investment, due diligence is very important. Investors should carefully review the Confidential Investment Memorandum (CIM) provided for each development or limited partnership – the CIM will provide the investors with full disclosure of the details of the investment opportunity. It is recommended that investors consult with their lawyer and accountant prior to committing to a subscription for a real estate investment.

Total Properties only introduces investment opportunities, such as Limited Partnerships, to qualified Accredited Investors. If you qualify as an Accredited Investor, please register (link to User Login) and an Investor Relations partner will contact you to walk you through the subscription process as well as review current Investment Memorandums and supporting documents.

Yes, you must be a qualified Accredited Investor to be eligible to invest with Total Properties. For residents of British Columbia and Ontario, an Accredited Investor means:

• An individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any     related liabilities, exceeds $1,000,000; or
• An individual whose net income before taxes exceeded $200,000 in each of the two most recent years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent years and who, in either case, reasonably expects to exceed that net income level in the current year; or
• An individual who, either alone or with a spouse, has net assets of at least $5,000,000.

You will own Limited Partnership Units, similar to owning shares in a corporation. The Limited Partnership will own the vacant land or property purchased for a multi-family residential, mixed-use, commercial or industrial development.

Each Real Estate Limited Partnership will have a subscription price per unit and a minimum subscription amount of C$500,000.

No. The Limited Partnership is not RRSP eligible (at this time).

A limited partnership is designed to shield an investor from liability. As a limited partner, you’re liable only for your original investment amount. The General Partner assumes liability for the necessary mortgage debt-encumbered on the project, all personal guarantees, development and construction management responsibilities and all other liabilities.

Profit is ensured and risks are minimized by partnering with a qualified developer, installing cost controls, setting fixed contracts and having the experience to be able to anticipate and mitigate any potential problem areas. Limited Partners are not guaranteed a return; they earn a preferred rate of return.

The General Partner is committed to providing updates and reports of revenue and expense figures to all Limited Partnership Unit holders. Review engagement financial statements will be forwarded at the end of each fiscal year. Limited Partnership Unit holders will also be notified of important developments on an ongoing basis – via phone teleconference, emails, and direct contact with Investor Relation partners.