WEBVTT

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Hi everybody and welcome. I'm Mike Seal with Referral Network Realty and we're here today

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joined with Kelly Fry and Cameron Manning from our BC real estate team. We wanted to

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get a chance to show you guys an amazing opportunity that they found in the British Columbia market

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and I wanted to get you guys to know them a little bit more and obviously see that there

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are still deals happening out on the West Coast. So Cameron, Kelly, you want to tell

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us a little bit about yourself, how the market's going out there and maybe we can get right

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into this presentation. Absolutely, Mike. We've been involved with

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Key Spires since I think it was the fall of 2016. We've never looked back and we love

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working with investors. We've been investment realtors for a long time. I'm actually a CPA

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by profession and we love crunching the numbers and I got to tell you that this project is

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a unicorn for us because BC is always viewed as being the expensive market. This project

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that we're going to present today has an affordable price point and it has cash flow and we can't

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wait to get into the presentation. Do you have anything else to add, Cam?

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Yeah, just in relation to what's going on in the market right now. I mean, obviously

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people out there are saying it's a tough market. It's hard to find anything right now. So as

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Kelly said, these unicorns, when they come up, this is where investors need to take massive

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action and scoop these up before the general public even finds out about these. And sometimes

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you got to go a little bit outside the major markets as well. So the opportunity we're

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going to present today is not in Vancouver itself, but it's in British Columbia and it

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definitely is impacted by the Vancouver ripple effect that happens when the markets start

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to improve. However, there's a bit of an isolation that we're going to talk about that's causing

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this area to still actually perform very well outside of what's happening with interest

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rates and tariffs and everything else.

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And I mean, to put it into perspective, it's about a three hour drive from Vancouver. So

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it's still easily drivable if you're a landlord locally, that is. And, you know, there's good

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property management in place and it's actually one of the areas that's exempt from the Airbnb

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ban. So, you know, it's got a lot of attributes that we like.

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Yeah, I really liked it when you guys got a chance to send it over because it's really

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rare that we see deals now anywhere, not just in BC, but across the country, when

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realtors are trying to find that deal that fits well with a real estate investor and

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finding something that actually cash flows. You know, we've got a lot of first time investors

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that are just getting started now with Keys Buyer and they're trying to find that first

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deal that they can take advantage of and get an opportunity. I think a lot of people are

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struggling with the resale market stuff where the prices and the rents just kind of don't

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mesh together. So maybe you guys can touch on that a little bit while we go through the

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presentation and why the pre-construction and the new construction is a benefit.

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Yeah, I mean, there's a lot of pressure on developers right now. You know, our government

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is sort of scrambling to try and find ways to get developers back into the market to

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bring product because the development charges and the costs for developers have been rising.

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But this one is a project that I think is so great. And so, like you said, for first

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time investors, my own daughter, who's 23, jumped on the opportunity. The deposit required

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is really low and the price points are quite affordable.

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Yeah. Awesome. It's so hard to hear people say affordable in BC in the same sentence.

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But we did it.

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Looking forward to it. So I know you guys have a few people on the call with us today.

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You guys want to maybe do a little bit of an introduction on who they are. I know you've

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got the developer here as well so that we can go through some questions with them. Maybe

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we can do that next.

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Yeah, for sure. So Salim is our developer who's on the call, which is great. So we can

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ask him all the hard questions. And then Nick, who's representing the developer as the listing

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agent and team, is also here, very knowledgeable on the project as well. So we look forward

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to having their insight on top of what we already know.

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I think Salim's muted.

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Yeah, we appreciate you having given this opportunity to be with you, Mike, with Kelly

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and Cameron. Nick and I are excited about working together with the Key Spires Group.

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We feel quite fortunate to be working with such a stellar marketing group like yourselves,

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experienced realtors. And we really feel that you've kind of hit the nail on the head with

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the various key points here with affordability, being in a region where in a province and

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around the whole country, really, affordability is a key point. And we've been able to be

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fortunate in finding this hidden gem in Princeton where there is basically zero vacancy. So it's

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a great opportunity for

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or first time home buyers, anyone that wants to come and retire and anyone that wants to

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have a different lifestyle for outdoor living.

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There's so many things to do in Princeton.

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I think being an investor myself, I asked the key questions when I first made this investment

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into coming into Princeton and I think that's what some of your buyers would want to know.

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Why Princeton?

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So I think if you give me a little opportunity just to explain to you my experience and how

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I got involved, I'd be happy to do that.

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So normally Princeton was just a gas stop or a stop for me to get my A&W onion rings

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on my way into Soyuz.

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And when the opportunity came to me to invest into Princeton, I said, no, it's not something

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I want to do.

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But my friend who introduced me to the opportunity said, just take a look at it.

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There's a lot happening in this small little town that's just expanding.

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And so I said, I'll do it on one condition if I get an opportunity to meet with the mayor

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and council and the CAO.

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And I was given that opportunity a week later.

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The mayor was so open, I met with the whole council and I said, what's there to do here

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in Princeton?

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And one of the ladies piped up and said, hey, what isn't there to do here in Princeton?

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They've got the world fly fishing tournaments that come in annually.

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They've got one of the largest rodeos.

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There's hiking.

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They've got the cross-country skiing.

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Manning Park is right there.

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So they've got downhill skiing as well.

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They're close to all the vineyards.

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So there's so many things to do in Princeton that people underestimate it to be.

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So that kind of checked the box for me.

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OK, there's things for people to come and reside into Princeton.

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I'm like, OK, why else would I invest?

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And the key component was industries.

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There are major, major industries in Princeton.

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There's warehouses, lumber mill.

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There's the Hutt Bay copper mine, which is Canada's third largest mine.

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So that is very significant.

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You've got the agri-greens facility up there that does the psilocybin and mushrooms for

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an international market.

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All of these key industries produce over $1 billion worth of GDP for the province,

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which a lot of people don't know.

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And majority of all of these industries are all export-based.

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So going to Cameron's point, we are not worried about any issues with tariffs or these industries

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are not going to be affected at all.

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The one major component after meeting with all decision makers of these companies is

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housing.

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They're having a major problem with retaining their employees because there's a very shortage,

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there's a high shortage of housing in the city.

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So they are open to, they're really excited about our opportunity and feel that not only

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is it good for families to come in and buy, but it also is a great opportunity for investors

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to come in and buy and rent them out.

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The cap rates are phenomenal.

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It's equal to what we're seeing in the lower mainland, if not better, based on the investment

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that we have.

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We've been lucky, our entry cost was fantastic.

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So we were able to get a really good entry cost in terms of our land costs.

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We have a fantastic GC that's based out of Alberta.

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So we're not dealing with the high GC costs that you see in the lower mainland.

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So we're really excited.

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We're going to be delivering a phenomenal product at a really competitive price.

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And I think that's going to be our competitive advantage because of our costing that we've

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been able to maintain throughout the project.

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Nick, did you have anything you wanted to add?

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Yeah, my name is Nick Niaksu.

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I am the, I represent the developer through Angel Housing Associates.

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And one of the reasons why I chose to work with the developer on this project is one

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because, you know, the developer's great, very reputable, and they have a great team.

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But second is the location.

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the opportunity. As an agent for 15 years, I've sold over a billion dollars of real estate myself,

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although it houses up to $20 million. And I've worked with a lot of investors. And in Vancouver,

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my investor pool is zero now. Nobody's buying any more investments in Vancouver. We're looking at

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outlying markets. And to come across a project like this is super exciting for me. And it's not

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necessary because as an agent, it's a lower price point. It's a lower commission. It's not about

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that. It's about being excited about a project that we can actually put investors in to confidently,

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and they can have a secure investment. Nothing is guaranteed. But the metrics in Princeton are,

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it reminds me of Vancouver in 2015, 2016, the numbers and the returns that I'm seeing. But

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these are real-time numbers in 2025. In an economy as a whole, that's not very good. But

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we'll go into more why Princeton is an outlier in that world. But we're looking at numbers like

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there's less than 1% vacancy in Princeton right now. For example, Toronto has 3% to 4% vacancy.

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Kelowna is 5% to 6% vacancy. Calgary is 5% vacancy. And Vancouver is around 2% vacancy

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as a reporting vacancy rate. I feel it's higher than that, but that's the reporting rate.

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So the C, economic strengths, and all the green flags that come along when you're doing your

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research as an investor, plus the price point, the attainability of a project, of a new development

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Princeton point, it is an incredible opportunity. And we'll get into that in the presentation.

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And I think that's why we're all here today, because we're very excited about this.

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And we're excited to share the information we have.

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Awesome. So Cameron, do you guys want to step in and run us through the presentation?

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Absolutely. Let me share my screen here. And then let me know if you guys can see it in

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full presentation mode. Not yet. You want to click the present button?

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I did the purple one. Oh, there we go. Yeah, there we go. I'm not used to Canva. So

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already. No, here we go. Here we go. All right. Let's take it here. So this is, of course,

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Princeton point. So this is the development that we're talking about here today. And we're going

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to run through some of the key highlights of the development. I know we've kind of touched on it

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already. We're also going to talk about the economics of why Princeton, show you some of

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the supporting evidence as to why this is making a very strong investment. So I'll let Kelly maybe

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jump in and take things away. All right, where sophistication meets

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outdoor adventure. And I think the strength of the, you know, economic factors there,

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coupled together with the beauty and all of the outdoors opportunities in Princeton. Now we can

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see the rendering here of the building, which is, you know, very modern looking and would be the

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first condominium building of its kind in Princeton. And, you know, in our market here,

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there's really a movement away from detached and towards condos and townhomes anyway. So,

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you know, the timing is really good. And so from a mapping standpoint, you can see where the big P

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is in terms of how far it is from Chilliwack, which is sort of a further suburb of Vancouver.

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And it's on the highway that lends itself up to, you know, Kamloops, Kelowna, all the various areas

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that people drive through, you know, for recreation or, you know, for living. And one thing that the

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realtors brought to our attention immediately was that the workers right now for Princeton

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are driving from Hope, from Kamloops, from a Soyuz, because they cannot find places to live,

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to work from. And then people are renting rooms and houses at very high daily rates that work at

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the hospital in Princeton. And Nick, maybe you can jump in just on the, we talked to some of the

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colleagues that you had and just the opportunity for the motels there, what they're like, because

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I know you probably have experienced those. Yeah, I have. I mean, it's all really pretty

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much the only option I have when I go to Princeton is to stay at, you know, at a motel.

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And these are, you know, two-star motels that are generally quite full with mine workers.

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And in the summer, tourists, lots of tourists come through at Princeton.

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And yeah, the options for short-term stay are very, very limited.

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And Nick, I don't know if you know the numbers,

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in the summertime, how many people drive through Princeton in a day,

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even just to gas up on their way to Kelowna?

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It's a good question. I believe the numbers can be extraordinary. I think they're in the

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five digits. I think

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I've heard up to 20,000 in a week. You get 2,000 or 3,000 visitors that come through Princeton

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on any given day, especially in the summer, on the weekends. It is really, really...

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If I can just jump in. Nick, when we were doing our marketing survey, in the summer,

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it peaks probably around 3 million cars that pass Princeton per month.

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I'm not from B.C., and I can even see it's an intersecting point to a number of different

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cities that people would travel. Yeah. It's always been known as a

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service hub for these different towns, and it has been known for that for a long, long time.

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Like you said, Kelly, the highway is great, and it's just a convenient hub point for

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people to go through, whether they're going into Merritt, into Kelowna,

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or Sawyee. It is a hub that's central to the Okanagan.

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There we go. We can see here all of the,

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as were mentioned by Salim, the wineries, the sports, the golf.

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Now, some of the activities for the outdoors, as you mentioned, the wine tasting, the hunting,

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the hiking, the snowshoeing, cross-country skiing, golfing at the Princeton Golf Club.

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But what excites me more than even those things, and those things are important because

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as an investor, when you invest in a property, your exit strategy, of course, for resale,

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is to the consumer who's going to live in the property.

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Those outdoor amenities are fantastic, but it's the economic drivers that I think are really,

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really important. The Copper Mountain Mining Company, the forestry, sawmills, the pharmaceuticals,

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the tourism, the livestock and farming, and I think from what I've been told, and Salim,

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maybe you can add to this, there are so many other companies that want to move into that area

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that are just held back by the housing.

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It's true. The town has a industrial zone and they've, last year, they put them up for sale,

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the industrial sites, and those got gobbled up. And there's a lot of companies that are

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slowly coming in, whether they're a car wash or a service company mechanic. There's been

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companies that have moved in there for simple things that people need on an everyday basis,

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like a storage, an RV park. There's also talks of other industries coming in,

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furniture manufacturers, being close to the lumber industry. So, there's a lot of industries

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that do want to come, but they basically stop because they know that there isn't housing there

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for their employees. You're looking at companies that want to come in with 30, 40 plus people that

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they want to employ and bring industry, because Princeton has really excellent price points for

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industrial land. That's very cheap compared to the rest of the province. And that's been

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done by design by the town and the mayor. They're very forward-thinking. So, they've done that

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strategically. They have fiber that's really important for us to mention in the town of

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Princeton, allowing people to work remotely and attract other industries. So, there's a lot of

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industries, and they have phenomenal power. There's no shortage of power in the town. So,

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any other industry that wants to come on board, that wants to come into Princeton,

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there's no deterrent. The deterrent is housing. So, this development that we're doing is

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we validate the vision of the town, and it essentially is an excellent investment to make,

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because it checks all the boxes for industry, for tourism, and anyone that just wants to just retire.

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So, as we mentioned, there are lots of local amenities at your fingertips. There's also a

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minor hockey, golfing, breathtaking trails in the Kettle Valley Trail, world-class fishing. And you're

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never more than five minutes away from all these conveniences. And so, this map sort of indicates,

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you can see Savon Foods, which is a large grocery chain here in BC, is already present,

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a large grocery chain here in BC is already present, Shoppers Drug Mart.

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So, even though it's a smaller community,

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community, and then home hardware, they've got a lot of things that, you know, you wouldn't

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expect in a smaller town.

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And one thing to point out as well, just with this map, you know, you can see this middle

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part here where all the numbers are, that's kind of the downtown area.

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So we're just outside the downtown area, so you're not right in the hustle and bustle.

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And yet, you've also noticed that there is an airport and a hospital as well.

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So this this small town has everything that that people possibly could want.

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So

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if I can jump in as well, it also has the, you know, elementary school and your secondary

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school as well.

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So it has the necessary school requirements as well for anyone that wants to reside in

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Princeton.

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Now, just what Salim was saying earlier, just in regards to all the industries that are

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coming in and the need for housing.

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So the mayor of Princeton has put a position forward that they need between 300 to 500

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homes to come into Princeton in order to achieve what they want in terms of growth

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from the industry, from being able to provide housing to all the employees that are coming

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in.

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So this is a large undertaking for such a small town.

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They haven't had this level of development in decades.

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So this project here is just a small piece of what is actually required to hit that mandate

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at this point.

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And this project is, Salim, is 150 units, correct, in the two phases?

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Correct.

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Yeah.

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And I think one of the shocking things you'll notice is the mayor is extremely young.

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And you know, you don't see young mayors like this very often.

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So very progressive.

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Yeah.

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And very pro-business.

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Yeah, the whole staff is young and progressive and full, and they're all about growth.

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And they're, and you know, you know, as a developer, or even as a salesperson, you know,

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I had the mayor's cell phone number.

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He gave it to me.

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If I have any questions, any concerns, give him a call.

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So this is, talk about, you know, government working with private industry.

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It is very, very refreshing to say that in our industry.

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I think we all can agree on that.

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100%.

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Absolutely.

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Absolutely.

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And with regards to the mines, you can see here on the screen that the daily capacity

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is 45,000 tonnes of the primary metals.

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And then there's also a daily mill capacity of another 5,300 tonnes, which is fairly significant.

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In terms of what you've seen with the mine, I believe there's been a bunch more hiring

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of people for the mines.

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Is that correct, Slim?

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Yeah, there's been, I think, in this presentation, we've got it at 450, but I think they've hired

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up to 750 new hires.

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And that number is going to continue to increase.

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The mine has another shelf life, mine life of 21 years.

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And they're expanding into an adjacent mountain, the original mountain that they started their

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mining operations in.

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With new technology, they're going back and, you know, re-mining that mountain.

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I'll give a little context as well.

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So Copper Mountain Mine was sold to Hud Bay around two years ago.

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So Hud Bay being one of the largest mining companies in Canada, bought this mine and

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they replaced, you would say, dated mining equipment and technology with, you know, state-of-the-art

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mining equipment and technology.

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And they've basically given this mine horsepower.

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And Slim's correct.

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At the time of that sale, there was 450 employees.

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Now there's 681 employees.

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This does not include contractors.

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This is employed by Hud Bay.

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So there's probably right now another 100 to 150 contractors, like engineers, specialty

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contractors, geotechs that come up under contract and they come to Princeton.

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They stay for one or two weeks at a time and then they go back home.

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And you know, there really is probably more of an 800 to 850 person operation right now.

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And they're continuing to hire more and more as they expand the mine.

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Another really good point about the mine is that it is tariff-proof.

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So Mitsubishi has the rights to 85% of the copper of the mine, and that's all pre-sold.

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So regardless of what happens with the U.S., they've already sold all the copper.

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So the more that they can produce, the more that will be purchased by Mitsubishi.

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And this is a huge reason why this is an outlying industry, especially in Princeton.

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It is recession-proof.

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And we've already seen that.

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that we're you know it is a pair of proof we've already seen that and this

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is one of the only economies in in BC that's thriving in both real estate and

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in industry because of that in the natural resource sector.

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And I think also to add to what you've just said Nick the thing that

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investors need to understand is that the sawmill the hospital and the mine all

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have above average income levels for their workers so you know it's not

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uncommon for workers to be making you know a hundred thousand in this area so

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in terms of the offering for what they would want to live in you know something

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brand new like these condos would be perfect.

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And affordable in that price range with their income like very affordable.

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Yeah yeah you nailed it on the head Kelly you know they're being paid really well

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up at that mine in the mill they're treated really well.

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So I guess this is just um you know recent hiring posts that the mine has

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put out or Hudbay has put out and you can see it's all just in July

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alone.

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Yeah the touch on that so yeah so when I was talking to one of the directors

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of the mine up there their their starting wages are a hundred thousand

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but the but the average starting reach is about 140,000 a year

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and that's for a basic labor on site. So if you're if you're if you are

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you know if you are just a roughneck up there working on the site you're making

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probably 140,000 plus bonuses every year.

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So there is a lot of money in Princeton it is a very

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rich community. Yeah speaking about very rich community

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the last line here on this part where it says it's a very expensive

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it's very expensive to rent here because there's no availability. This is as

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investors what we also want to be looking for very low vacancy which is

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driving rents up. So when you're getting in at an

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affordable price you know that the rents are going to be high enough

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to be able to generate cash flow and we will show you guys some examples of some

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four ways to win a little later on. But these properties will cash flow just

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in like just straight rentals at this point

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and then you've got the fact of Airbnb not being blocked in this

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this area there's several other advantages that you have here

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and it's just because there's literally no availability for housing both on

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purchasing as well as for the rental aspect.

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Well that's the bit that's the stuff that really made me excited about the

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project when I sent it over is it's always been hard to find

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pre-construction condos that are cash flowing at day one.

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You know a lot of times people were looking at them making the acquisition

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and really betting on the appreciation of what was happening in the market as

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it grew more so than the day-to-day operation.

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So seeing it cash flowing from day one where it carries its own

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weight I think is really valuable especially in today's market.

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Absolutely. Now maybe Salim you could speak to the features and finishes here

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that we're seeing on the screen since you're the one responsible.

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Yeah no no problem. I just want to finish up with what

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Mike was saying too about the affordability you know we're 10%

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down the project cash flows and it does

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the cash flow positivity was when the interest rates were up

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when we ran the numbers. So you run the numbers today

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when the interest rates now have been you know stabilized and they've been

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decreased with potential decreases coming in the future by what I read

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yesterday. I think it it bodes well for the

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investors coming in. Absolutely. Touching on the the finishing

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we really wanted to give the town of Princeton

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something you know that we could be proud of

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and they would be proud of too and we wanted to come in with a

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contemporary kitchen you know with you know really great

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lighting that is that you wouldn't see up in

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Princeton and that you would basically see in

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you know down in the lower mainland. So we wanted to have

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you know the name brand you know faucets and toilets and

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having the nice backsplashes the proper stainless steel

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fridges with the full appliance package and dishwasher as well.

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Being a community that's also you know that fluctuates with climate in

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the summer it's quite hot and winter gets quite cold we wanted to

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have you know a proper system where we can also

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you know offer air conditioning which you know a lot of people don't

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have in you know in the area that have

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older units the newer units.

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are getting air conditioning. So we really wanted to offer amenities that you would see in the lower

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mainland or in other cosmopolitan cities in Princeton. So anyone that wants to rent a unit,

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they'll get higher rents than what's being offered in the market currently.

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I'd like to add to that as well, for the finishings as well. So we sat down with intent

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before, rather than just putting together a basic finishing package, with the developer,

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asking who's going to be our buyer. And knowing that investors are going to be buying, well,

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we need to provide maintenance-friendly finishings as well. So there's laminate

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flooring throughout. There's no carpet, which is very good for investors. And it's very nice

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laminate too. So it's not cheap plastic laminate. It's a really nice, it's a beautiful laminate

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flooring that they selected. And it's going to be aesthetically pleasing and maintenance-friendly

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as well. Being an investor myself, owning multiple properties, carpet is terrible.

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Also touching on being a low-rise building, oftentimes you'll see baseboard heating

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systems with optional sort of attached to the wall, AC units. This is central air.

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This isn't baseboard heating. This is all heating and cooling through a central air system,

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which is a notable upgrade in any community with low-rise wood frame development.

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Yeah, we don't see it often.

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You don't, no. So this is a very, very nice addition. And then the modern finishes like

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quartzite countertops, very easy to maintain, beautiful sleek finishes, two-tone cabinetry.

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Again, the developer is so great in this aspect, sitting down with the architect and the agents,

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especially agents that are experienced, that have a lot of influence on what's

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being delivered today. And we're so happy to present nice floor plans that are efficient,

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beautiful finishes, proper sized living areas. I'm sure as investors, we've all seen floor plans

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that don't make any sense. It's like, we can't fit a bed in this location. We can't fit a couch

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in this location. We can't fit a dining area in this location. These floor plans in all typologies

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are fantastic. And where we can offer beautiful balconies, we have those as well in all the

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one-bedrooms and up. The studios don't have balconies, but every single unit that's a

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one-bedroom and bigger have beautiful balconies. And yeah, we're very proud to present these floor

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plans and these finishing packages to our buyers. They're fantastic. And they're by far,

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hands down, better than anything in Princeton right now. Not even close.

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Sorry, Kelly. Nick, if I can just jump in, Nick makes a really good point about the balconies.

404
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We've got a great view of the river. So we wanted to take advantage of that and allow

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anyone that has a balcony to enjoy those viewpoints that they may get on the riverside.

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We've also got a rooftop deck which is on the west side and it is going to be something

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really special for anyone that lives there. We're planning on having gas barbecues up there,

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a couple of hot tubs as part of the amenities that we would offer and allow people to enjoy

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that outdoor space. So Salim, I had a question that has come up when we talked about this

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project with other people in the past. And it's just in regards to the fact that you do have the

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river view, but that also creates some concern with potential flooding. So I know you guys had

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investigated that as well. Maybe you can touch on why you guys are where the location is. It's

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not going to have any issues in that area. Oh, it's a great point, Cameron. And it's something

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that we addressed from the very beginning. When that flood happened, that was a 500-year event

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and it was devastating to the town of Princeton as well as Hope and we saw in Abbotsford as well

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and other communities in Merritt. But the nice thing about this property, it is right next to

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the river, but it is up higher. The elevation is much higher than that 500-year event. So it would

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not reach the building. If it did, we designed the building in such a way where we have the first

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floor is all

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concrete slab. And we also have the original design had an underground, which would prevent

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any flooding to basically affect any of the other units. So it's designed in such a way where

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if it did surpass that 500 year event, which we really don't think it would because it didn't,

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it wasn't, the water level never ever reached that level. And we've also set the building back

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to a 30 meter setback from the river, which is 15 meters more than a lot of other communities.

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So, you know, those are the three factors which we've implemented, you know, to make sure that

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the building is going to be sound from a flood standpoint.

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Really well thought out storm water management plan.

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Correct.

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Yeah. And just some more context here as well. Even within that 15 meter setback,

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when we had that 500 year event, the water did not reach that elevation. So the be back 30 meters

431
00:36:12.880 --> 00:36:16.720
is it's, it's effectively foolproof at this point.

432
00:36:18.240 --> 00:36:19.040
That's good to know.

433
00:36:22.080 --> 00:36:27.760
Wow. That's all I have to say about these numbers. So you can see this

434
00:36:28.800 --> 00:36:33.040
500 under $500,000 for the biggest unit in the building.

435
00:36:33.680 --> 00:36:39.200
Yeah. I mean, 269,000 for a studio. I mean, it's, it's kind of like what a parking stall costs

436
00:36:39.200 --> 00:36:45.840
here. So, you know, we love that starting price, one bedroom starting at 339, two bedrooms at 449.

437
00:36:45.840 --> 00:36:51.040
And these are big one bedrooms, like we sell one, two, or sorry, two bedrooms, we sell them,

438
00:36:51.040 --> 00:36:56.000
and they're like 683 square feet or 700. So these are a good size.

439
00:36:56.000 --> 00:37:02.640
I've got a junior two on the market right now that is like 620 square feet right now. And

440
00:37:02.640 --> 00:37:07.120
the second bedroom does not have a window because it's a junior two. So just gives you perspective

441
00:37:07.120 --> 00:37:09.200
of the types of units that they're building right now.

442
00:37:09.920 --> 00:37:15.040
And so you can see below on the long term rental side, you know, even the studios are commanding

443
00:37:15.040 --> 00:37:24.320
1350 to 1450, the one bedroom 1600 to 1700, and the two bedrooms 1900 to 2200. And that's like,

444
00:37:24.320 --> 00:37:28.720
quite comparable to what we would see in the lower mainline here. So they, you know, it's very

445
00:37:28.720 --> 00:37:35.120
impressive. And these are not aggressive targets. These are quite expected conservative targets.

446
00:37:35.120 --> 00:37:41.200
Then you can see the short term rental rates, assuming a 60% occupancy, $100 a night, 125 a

447
00:37:41.200 --> 00:37:47.760
night and 150 a night, all quite reasonable. Yeah, yeah. And I'll touch on that. Oh, sorry.

448
00:37:47.760 --> 00:37:48.880
Yeah, no, go ahead, Nick.

449
00:37:48.880 --> 00:37:52.320
Yeah, I'll touch on a bit more as well. We and we use conservative numbers as well,

450
00:37:52.320 --> 00:37:59.520
that the average one bedroom rate in BC is just over as 2050 per month. And the average, you know,

451
00:37:59.520 --> 00:38:04.800
as we know, as agents, the average one bedroom is, it's probably in the studio size around the 450

452
00:38:04.800 --> 00:38:11.760
to $500 a square foot or 500, sorry, square feet. So these are conservative, I honestly feel

453
00:38:11.760 --> 00:38:16.960
based on the strength of the Princeton rental market, these numbers are going to be, you know,

454
00:38:16.960 --> 00:38:22.160
could be at least 10-20% higher. But as we're running our numbers as an investor, we should

455
00:38:22.160 --> 00:38:27.280
always be running our numbers at a C or B level and shooting for A's. So these are our C and B

456
00:38:27.280 --> 00:38:33.760
levels in our in terms of our revenue reports, however, likely will be much higher. And even on

457
00:38:33.760 --> 00:38:39.920
the short term rental side, like I said, you know, the options in Princeton for a hotel room

458
00:38:39.920 --> 00:38:46.240
are very limited. But these hotel room rates are much higher than $100 per night, the 13140 number

459
00:38:46.240 --> 00:38:52.000
for a just a basic room with with maybe if you're lucky, a little kitchenette with like a little

460
00:38:52.000 --> 00:38:58.720
coffee maker. Remember, these are full kitchens in our in our units, these are these are condos

461
00:38:58.720 --> 00:39:04.000
that you would live in. So the demand for a product like this is going to be much higher

462
00:39:04.000 --> 00:39:08.160
for for the consumer than it would be for a little motel unit.

463
00:39:11.040 --> 00:39:14.320
I think something I'll point out here as well, just where it says anticipated market rents,

464
00:39:14.320 --> 00:39:20.720
these are also based on 2023 reports as well. And in these areas, we're going to be experiencing

465
00:39:20.720 --> 00:39:25.840
with with a low vacancy, it's going to put that upward pressure. And we also have the build time,

466
00:39:25.840 --> 00:39:30.640
right. So we're analyzing these with rents that we would think we could generate if this

467
00:39:30.640 --> 00:39:37.120
building was done today. And so in most of these situations, if you have an extended period of low

468
00:39:37.120 --> 00:39:41.600
vacancy, that upward pressure by the time the building is completed will likely see

469
00:39:41.600 --> 00:39:46.080
the conservative numbers also being higher by the time that's done as well. So yeah,

470
00:39:46.080 --> 00:39:50.960
I've seen it in other buildings where the average rental rate, you know, will top somewhere between

471
00:39:50.960 --> 00:39:56.160
five to 7% by the time the building is completed from the projected numbers that we worked out at

472
00:39:56.160 --> 00:39:58.000
the time we did it. No.

473
00:40:00.000 --> 00:40:05.000
Just touching base on those rent numbers,

474
00:40:07.080 --> 00:40:08.680
anybody that wants to,

475
00:40:08.680 --> 00:40:12.040
like Kelly had mentioned earlier on in the call,

476
00:40:12.040 --> 00:40:15.600
was that we're exempt from Airbnb.

477
00:40:15.600 --> 00:40:20.600
So anyone that wants to have their unit Airbnb,

478
00:40:21.360 --> 00:40:23.280
they're gonna get much higher rates

479
00:40:23.280 --> 00:40:26.380
than those $100, $150 daily rates.

480
00:40:27.380 --> 00:40:28.940
They'll command a lot more,

481
00:40:28.940 --> 00:40:33.860
especially with the views and the deck and the jacuzzis,

482
00:40:33.860 --> 00:40:36.020
they'll be able to command a lot higher.

483
00:40:36.020 --> 00:40:39.080
None of the hotels have any of those type of features

484
00:40:39.080 --> 00:40:41.180
that we will have.

485
00:40:41.180 --> 00:40:42.500
The walking trails,

486
00:40:42.500 --> 00:40:46.140
we're gonna also have walking trails around the property

487
00:40:46.140 --> 00:40:48.420
that goes right down to the river.

488
00:40:48.420 --> 00:40:51.940
So it's gonna be not only beautiful, new,

489
00:40:53.380 --> 00:40:55.660
it's the top line of everything,

490
00:40:55.660 --> 00:41:00.100
it's going to be something unique in the town of Princeton.

491
00:41:00.100 --> 00:41:02.980
Yes, so this is the other stuff that I really liked

492
00:41:02.980 --> 00:41:04.900
was the foreign buyer exemption.

493
00:41:04.900 --> 00:41:06.100
It gives us an opportunity

494
00:41:06.100 --> 00:41:08.300
for not only our Canadian Keyspire members

495
00:41:08.300 --> 00:41:10.180
to take advantage of the opportunity,

496
00:41:10.180 --> 00:41:12.420
but our American investors

497
00:41:12.420 --> 00:41:13.960
that are part of our Keyspire community

498
00:41:13.960 --> 00:41:17.080
to be able to take advantage of the opportunity as well,

499
00:41:17.080 --> 00:41:20.900
which is really, really an incentive for us

500
00:41:20.900 --> 00:41:22.640
to be able to put it to the membership

501
00:41:22.640 --> 00:41:25.020
because everyone can have a chance

502
00:41:25.020 --> 00:41:26.660
to take an opportunity at it.

503
00:41:26.660 --> 00:41:28.020
I know that foreign buyer ban

504
00:41:28.020 --> 00:41:29.620
in a lot of the other major markets

505
00:41:29.620 --> 00:41:32.440
has really kind of held back that expectation

506
00:41:32.440 --> 00:41:34.580
or ability for them to be able to enter.

507
00:41:34.580 --> 00:41:35.780
So this is another good thing.

508
00:41:35.780 --> 00:41:36.620
And with the dollar,

509
00:41:36.620 --> 00:41:38.780
the way it is against the US dollar

510
00:41:38.780 --> 00:41:40.820
makes it even more value for them.

511
00:41:40.820 --> 00:41:43.460
Yeah, these properties are very affordable

512
00:41:43.460 --> 00:41:44.420
with the US dollars.

513
00:41:44.420 --> 00:41:48.780
But yeah, no, to your point,

514
00:41:50.060 --> 00:41:51.440
and Salim, I know you've done the research

515
00:41:51.440 --> 00:41:52.280
on this a little bit more,

516
00:41:52.280 --> 00:41:53.780
but both the first two points there,

517
00:41:53.780 --> 00:41:55.380
the foreign buyer tax exempt

518
00:41:55.380 --> 00:41:57.900
as well as the short-term rental restrictions

519
00:41:57.900 --> 00:42:01.180
is a big part is due to the size of Princeton, right?

520
00:42:01.180 --> 00:42:03.580
Their population falls under the threshold

521
00:42:03.580 --> 00:42:05.180
for both of these restrictions,

522
00:42:05.180 --> 00:42:08.300
meaning that investors that normally would be restricted

523
00:42:08.300 --> 00:42:09.320
in the major markets,

524
00:42:09.320 --> 00:42:10.660
even in the Fraser Valley,

525
00:42:10.660 --> 00:42:12.640
like Abbotsford, Mich, and Chilliwack,

526
00:42:12.640 --> 00:42:16.280
they're exempt due to the fact that the population,

527
00:42:16.280 --> 00:42:20.260
the permanent population is quite low in these areas.

528
00:42:20.260 --> 00:42:23.180
Maybe Salim, you can expand a little bit on that.

529
00:42:23.200 --> 00:42:28.060
Yeah, that's quite true based on the provincial guidelines,

530
00:42:28.060 --> 00:42:32.220
but it has also been a mandate by the mayor and council.

531
00:42:32.220 --> 00:42:34.800
They want to attract tourism.

532
00:42:36.060 --> 00:42:38.380
We just saw on the earlier slides

533
00:42:38.380 --> 00:42:40.980
what there is to do in Princeton.

534
00:42:40.980 --> 00:42:42.340
And based on that,

535
00:42:43.540 --> 00:42:47.020
they have shortages of hotel rooms.

536
00:42:47.020 --> 00:42:49.540
And they really feel that if they are able

537
00:42:49.540 --> 00:42:52.660
to attract Airbnbs

538
00:42:52.660 --> 00:42:56.940
and offer additional type of tourism accommodation,

539
00:42:56.940 --> 00:43:00.300
then they feel that it is gonna add a lot more value

540
00:43:00.300 --> 00:43:02.620
to the town as well.

541
00:43:02.620 --> 00:43:06.140
And it'll open up more space for the hotels as well

542
00:43:06.140 --> 00:43:10.100
to offer a different product to other tourists

543
00:43:10.100 --> 00:43:12.140
that are coming into town.

544
00:43:12.140 --> 00:43:14.020
And that goes completely opposite

545
00:43:14.020 --> 00:43:17.220
of what most other city councils are doing out there,

546
00:43:17.220 --> 00:43:18.860
where some of the smaller towns

547
00:43:18.860 --> 00:43:20.820
will opt into these rental bans

548
00:43:20.820 --> 00:43:23.940
following misguided reports and everything.

549
00:43:23.940 --> 00:43:25.940
Whereas they understand the need for it

550
00:43:25.940 --> 00:43:28.100
and having that progressive mentality,

551
00:43:28.100 --> 00:43:29.740
they're keeping that restriction

552
00:43:29.740 --> 00:43:32.060
off of the city of Princeton.

553
00:43:32.060 --> 00:43:33.980
They already fall under the exempt,

554
00:43:33.980 --> 00:43:35.660
but then cities can opt in.

555
00:43:35.660 --> 00:43:38.140
They're opting not to opt in.

556
00:43:38.140 --> 00:43:39.100
That's a great point.

557
00:43:39.100 --> 00:43:40.380
And I was just gonna mention that as well.

558
00:43:40.380 --> 00:43:44.060
City, investor-friendly areas like Tofino, BC,

559
00:43:44.060 --> 00:43:46.260
where the Airbnb market was very strong,

560
00:43:46.340 --> 00:43:51.340
Tofino opted in to banning Airbnb.

561
00:43:52.020 --> 00:43:55.580
So Spencer has been very vocal saying that Princeton,

562
00:43:55.580 --> 00:43:56.780
it will not be doing this.

563
00:43:56.780 --> 00:43:58.820
They understand that short-term rental

564
00:43:58.820 --> 00:44:02.980
is a key part of the success of their town.

565
00:44:02.980 --> 00:44:07.340
And because they have so many sort of one to two week,

566
00:44:08.620 --> 00:44:10.220
contractors that come in and out

567
00:44:10.220 --> 00:44:12.140
for the mine and for the mill.

568
00:44:12.140 --> 00:44:14.620
So this is not changing.

569
00:44:14.620 --> 00:44:16.060
Well, it's such an important thing

570
00:44:16.060 --> 00:44:18.740
for people to consider in a community that's growing

571
00:44:18.740 --> 00:44:21.260
and the population's booming and they're trying to come in

572
00:44:21.260 --> 00:44:23.180
and they're trying to get their footing on the ground

573
00:44:23.180 --> 00:44:24.820
and decide, is this the place

574
00:44:24.820 --> 00:44:26.460
that we wanna make our transition

575
00:44:26.460 --> 00:44:31.460
as employment opportunities grow in the community?

576
00:44:31.700 --> 00:44:33.580
People are coming there to kind of research,

577
00:44:33.580 --> 00:44:36.420
is this the right fit for me to bring my family?

578
00:44:36.420 --> 00:44:38.940
And when there's limited places for them to stay,

579
00:44:38.940 --> 00:44:42.100
it hinders the ability for them to do the right research.

580
00:44:42.100 --> 00:44:47.100
So I think that a progressive community like Princeton

581
00:44:47.900 --> 00:44:51.060
is a chance for investors.

582
00:44:51.060 --> 00:44:53.420
I always look at it like, hey, this is,

583
00:44:53.420 --> 00:44:56.660
we're always looking for that space

584
00:44:56.660 --> 00:44:59.300
that's the up-and-coming locations

585
00:44:59.300 --> 00:45:00.140
that's got all the-

586
00:45:00.000 --> 00:45:06.080
checkboxes that are working. This really seems to have all of the key points of where an investor

587
00:45:06.080 --> 00:45:12.880
would want to place their money in today's market. One thing I wanted to add to Mike is that we've

588
00:45:12.880 --> 00:45:17.120
shown the long-term rental and we've shown the short-term but we haven't shown the furnished

589
00:45:17.120 --> 00:45:22.960
midterm and I think there's a really good bump up there as well on income for just furnishing it for

590
00:45:22.960 --> 00:45:31.600
the longer-term contracts. All right, I believe that's the end of this presentation. Awesome,

591
00:45:32.240 --> 00:45:37.680
so maybe we get a chance to go into some numbers if that works for you, Cam, because I think that

592
00:45:37.680 --> 00:45:42.560
that's the most exciting part that I've seen is these, these four ways to win. These are,

593
00:45:43.120 --> 00:45:48.000
you know, I mean how often do we see cash flow like this in any given market? We just don't.

594
00:45:48.400 --> 00:45:53.120
Yeah, so this one, this one here is based off of one of the two-bedroom units here, so

595
00:45:53.120 --> 00:45:58.480
as you can see here the purchase price is $499, however obviously we have to factor in there's

596
00:45:58.480 --> 00:46:02.160
always going to be GST when you've got new construction, so the final price is going to be

597
00:46:02.160 --> 00:46:08.400
$440, $895 on this. We ran these based on the conservative, now we bumped up the occupancy

598
00:46:08.400 --> 00:46:12.800
to about 70% because we really believe that, you know, 60% is not going to happen, it's going to

599
00:46:12.800 --> 00:46:16.560
be much higher than that. We're maybe a little, we're still conservative, maybe a little more

600
00:46:17.520 --> 00:46:22.480
aggressive. Factoring all that in, you can see here, once you factor in all of your expenses,

601
00:46:22.480 --> 00:46:27.760
the cash flow is quite strong at $730 a month, and again that's being very conservative. There

602
00:46:27.760 --> 00:46:31.840
are going to be times where your rents are going to be higher, there's going to be the,

603
00:46:31.840 --> 00:46:36.880
the summer times where you might blow that out of the water, especially if you've got people coming

604
00:46:36.880 --> 00:46:42.480
in for all the recreation. This is just kind of factoring on one base rent all the way across

605
00:46:43.040 --> 00:46:48.960
the month. So as you can see here, you're generating about a 25%, almost 26% return on

606
00:46:48.960 --> 00:46:54.480
your money, which we haven't seen ROI like that in the Lower Mainland in like nearly a decade at

607
00:46:54.480 --> 00:47:00.640
this point. We were lucky if we were breaking 20%, so there's very strong cash flow. Now,

608
00:47:00.640 --> 00:47:05.920
Kelly, do you want to add anything to that or? Yeah, well as someone who ran 23 Airbnbs myself

609
00:47:05.920 --> 00:47:11.840
before I got shut down by the government, you know, I look at, I look at this and I say okay,

610
00:47:11.840 --> 00:47:14.240
I've got a lot of furniture by the way, so if anybody needs them,

611
00:47:16.800 --> 00:47:22.640
you know, this, this is good because it's got an 18% property management in here, it's got the 3%

612
00:47:22.640 --> 00:47:29.360
Airbnb fee, it's got supply costs, like this is very realistic, but having gone into the long-term

613
00:47:29.360 --> 00:47:34.640
furnished market myself now to try and, you know, handle these shutdowns of my other Airbnbs,

614
00:47:36.080 --> 00:47:40.960
you could still make this kind of cash flow on a long-term furnished because you wouldn't have a

615
00:47:40.960 --> 00:47:45.600
lot of these expenses on a long-term furnished, so it's quite achievable even on a mid-term

616
00:47:45.600 --> 00:47:50.000
rental here. And something else I wanted to point out just as I'm re-looking at this here,

617
00:47:50.560 --> 00:47:53.760
Salim had mentioned when we were running our numbers before, we were running them,

618
00:47:53.760 --> 00:47:57.520
you know, months ago when interest rates were higher, so as you can see here, we're running

619
00:47:57.520 --> 00:48:01.840
this at a slightly higher interest rate, you can probably get a little bit better than that today,

620
00:48:01.840 --> 00:48:05.920
and two years from now we, I'm assuming, you know, as things balance out, we'll probably see

621
00:48:05.920 --> 00:48:10.160
a little bit lower from there as well, but the big, big key thing here, and this is to a point

622
00:48:10.160 --> 00:48:16.080
that Mike, you and I had a conversation, Kelly and I, about a lot of cities right now are having

623
00:48:16.080 --> 00:48:20.800
to run their cash flow numbers with higher down payments, right, we're looking 25, 30% down

624
00:48:20.800 --> 00:48:25.120
payments just to make cash flow work, and as you can see here, we're running this based off of your

625
00:48:25.120 --> 00:48:31.520
standard investment 20%, so these do cash flow, just putting the standard investment 20% down.

626
00:48:32.400 --> 00:48:37.040
Well, and it's still showing $734 positive cash flow.

627
00:48:37.360 --> 00:48:41.840
And again, other things that we see out there in the market is there's not a lot of properties or

628
00:48:41.840 --> 00:48:49.120
opportunities that people can access with $100,000 down, you know, most of the income properties that

629
00:48:49.120 --> 00:48:54.640
I'm seeing now, I mean, you know, a couple different obstacles to it is, one, the price

630
00:48:54.640 --> 00:49:00.640
points are higher, closer to the $600,000 to $800,000 mark to get started on anything, two,

631
00:49:00.640 --> 00:49:05.440
they don't cash flow, you know, and three, a lot of them are older buildings that need a bunch of

632
00:49:05.440 --> 00:49:11.280
improvements in work, and you're limited to the tenancy that's in the building. It's what's there

633
00:49:11.280 --> 00:49:16.640
is what you're stuck with. So, I mean, we all struggle with older properties and trying to

634
00:49:16.640 --> 00:49:21.440
turn tenants over to be able to get the best value, or to be able to get vacancy on it so that

635
00:49:21.440 --> 00:49:26.080
you can do the rehabs that are needed. This is the kind of thing that's just simple and clean,

636
00:49:26.080 --> 00:49:33.280
it's turnkey, it's relatively hands-off overall, for a first-time investor to get in and get

637
00:49:33.280 --> 00:49:38.320
started. And from all the indicators that you guys have shown me, it sounds like the economy

638
00:49:38.320 --> 00:49:42.960
there in that market is going to have a relatively strong growth in value.

639
00:49:44.960 --> 00:49:49.040
And I don't know if you've noticed, too, we've got the furniture in the cash required to close

640
00:49:49.040 --> 00:49:51.120
there, as well as the other costs. Yeah, I see that.

641
00:49:51.120 --> 00:49:54.240
So your cash required to close is actually under $100,000.

642
00:49:56.560 --> 00:49:59.840
That's unbelievable, and I love her numbers, too, because they are conservative.

643
00:50:00.000 --> 00:50:04.260
And that's how I really appreciate when, when people are honest with their

644
00:50:04.260 --> 00:50:09.540
numbers and, um, with, with growth, with potential to actually improve on them.

645
00:50:09.820 --> 00:50:13.340
These are very conservative numbers and, and the acquisition price on a two

646
00:50:13.340 --> 00:50:15.120
bedroom under $500 a square foot.

647
00:50:15.140 --> 00:50:16.380
Like, where do you see that?

648
00:50:16.440 --> 00:50:19.400
And anywhere anymore, you don't, right.

649
00:50:19.400 --> 00:50:22.260
You know, you're in the, in the Vancouver market, the Fraser Valley market.

650
00:50:22.280 --> 00:50:23.980
You're at, you know, I'm actually Vancouver.

651
00:50:23.980 --> 00:50:26.060
We don't even look at that, but at Fraser Valley, you're probably

652
00:50:26.060 --> 00:50:28.260
now at 700 to $800 a square foot.

653
00:50:28.640 --> 00:50:31.620
Uh, Kelowna, you're at, you know, a thousand dollars a square foot now for

654
00:50:31.620 --> 00:50:35.760
anything that's worth even looking at, but your, your price, your prices are

655
00:50:35.760 --> 00:50:39.200
now for a two bedroom and you're, you're adding a couple hundred thousand

656
00:50:39.200 --> 00:50:40.920
dollars onto that ticket price.

657
00:50:41.140 --> 00:50:46.220
So the actual attainability of the, of, of, and this isn't, this isn't a

658
00:50:46.260 --> 00:50:50.000
outlier two bedroom as being the, you know, the, the cheapest unit.

659
00:50:50.340 --> 00:50:54.980
This is what a standard two bedroom will go for on a second or third

660
00:50:54.980 --> 00:50:56.980
level, and then they go up from there.

661
00:50:57.200 --> 00:51:01.260
But you can, but, but the numbers are just absolutely fantastic.

662
00:51:01.300 --> 00:51:09.180
And, um, and to see a return like this in, in, in numbers that make sense is very

663
00:51:09.180 --> 00:51:11.260
exciting for any market in Canada now.

664
00:51:12.820 --> 00:51:16.800
Uh, Nick and Salim, can you speak to the appreciation rate in that area?

665
00:51:16.800 --> 00:51:20.680
Because we've only used a modest 3.5% for Princeton.

666
00:51:21.820 --> 00:51:23.280
Yeah, we're just looking at that.

667
00:51:23.280 --> 00:51:28.840
And, um, I'm, I don't know what the exact numbers are going to be.

668
00:51:29.000 --> 00:51:33.320
Um, and, uh, but I think your appreciation rate at three and a half

669
00:51:33.320 --> 00:51:39.200
percent is, is on the low side, um, based on, you know, what we see the future

670
00:51:39.200 --> 00:51:46.200
growth of, of Princeton and the outlying areas, um, I'm going to defer to Nick,

671
00:51:46.200 --> 00:51:53.720
but before I do, you know, I really feel that the, the, the product is new.

672
00:51:54.120 --> 00:52:00.120
Um, the real estate market right now currently is a anomaly in BC.

673
00:52:00.480 --> 00:52:06.360
It's roughly around 38%, uh, growth, um, year over year in the

674
00:52:06.360 --> 00:52:09.320
last two years, um, in, in Princeton.

675
00:52:09.320 --> 00:52:11.400
So there is a high demand.

676
00:52:11.440 --> 00:52:14.200
There is people that want to come into the town.

677
00:52:14.200 --> 00:52:19.760
And I think with, uh, new product like this coming in, into the town of

678
00:52:19.760 --> 00:52:26.480
Princeton is going to, uh, then spear other industries to come in and, and,

679
00:52:26.480 --> 00:52:30.760
you know, the whole cycle of creating appreciation and growth in a, in a

680
00:52:30.760 --> 00:52:36.360
town, um, is, is going to kind of snowball effect, um, you know, with this

681
00:52:36.360 --> 00:52:41.440
development, but I'll let Nick maybe Nick's a little bit more in tune to some

682
00:52:41.440 --> 00:52:44.280
of the numbers of appreciation in, in the market.

683
00:52:45.400 --> 00:52:48.200
Yeah, this, again, this is a complete outlier market.

684
00:52:48.200 --> 00:52:54.640
So where the average price dropped between two to 4% in, um, 24 or

685
00:52:54.640 --> 00:53:00.600
2020 or 2025, um, Princeton saw a 14% growth in price.

686
00:53:02.000 --> 00:53:02.360
Yeah.

687
00:53:02.480 --> 00:53:02.760
Yeah.

688
00:53:04.760 --> 00:53:10.680
I mean, it's supply and demand when you got a whole bunch of employment and you

689
00:53:10.680 --> 00:53:14.920
got a whole bunch of people moving to an area, then you've got high paying jobs

690
00:53:15.680 --> 00:53:17.640
and there's no houses to live in.

691
00:53:17.960 --> 00:53:23.480
The prices go up because they're pushing, you know, and, uh, for the older people

692
00:53:23.480 --> 00:53:27.240
who own the homes for a long period of time, they hit the lotto, you know, and

693
00:53:28.320 --> 00:53:31.840
the ones coming in, they still feel like it's good value, which is really, really

694
00:53:31.840 --> 00:53:33.760
what's important in the market space, right.

695
00:53:33.760 --> 00:53:37.480
Is to see things that are still of what people feel is good value.

696
00:53:38.320 --> 00:53:40.520
It is, that is the truth.

697
00:53:40.520 --> 00:53:45.880
I mean, you know, the, and just to see a really cool outlier market like this

698
00:53:45.880 --> 00:53:51.360
performs so well, um, you know, and, and to be in a market that doesn't really

699
00:53:51.360 --> 00:53:55.920
exist right now, which, which is this type of, um, like I would, this, this

700
00:53:55.920 --> 00:53:58.240
would be considered luxury condo market in that space.

701
00:53:58.680 --> 00:54:03.400
Um, yeah, it's, you know, I'm going to tell you right now, if, if, if these

702
00:54:04.280 --> 00:54:08.120
are ready today, they'd be, you know, there would be a lineup of people right

703
00:54:08.120 --> 00:54:12.280
now looking for rentals, long-term short-term midterm, you name it.

704
00:54:12.720 --> 00:54:13.880
There isn't enough.

705
00:54:13.880 --> 00:54:19.360
And I, and I, and don't just listen to us go on, go on marketplace, have a

706
00:54:19.360 --> 00:54:23.760
look at what's available in a short-term midterm long-term right now in Princeton,

707
00:54:23.760 --> 00:54:25.440
BC, you'll see it for yourself.

708
00:54:25.480 --> 00:54:32.560
It's, it is absolutely, um, uh, incredible to see a market thrive like this.

709
00:54:32.560 --> 00:54:36.400
And this, again, you know, this, you would think you'd be looking at 2015,

710
00:54:36.400 --> 00:54:40.680
2016 numbers, or at least through that lens at a real estate market, but it's

711
00:54:40.680 --> 00:54:43.640
2025 and it is stronger than ever.

712
00:54:44.000 --> 00:54:46.560
Um, the agents up there have been selling, I talk to them all the time.

713
00:54:46.560 --> 00:54:48.760
They've been selling more of this in the last year than they've

714
00:54:48.760 --> 00:54:51.960
sold in, you know, 2022, 2023.

715
00:54:51.960 --> 00:54:56.120
So with the introduction of, of HUD bay by an upper mountain

716
00:54:56.120 --> 00:54:58.120
mine, that has changed everything.

717
00:55:00.000 --> 00:55:01.720
Nick, Celine, quick question for you guys.

718
00:55:01.720 --> 00:55:05.040
So, you know, a lot of the members who are watching this

719
00:55:05.040 --> 00:55:07.840
are likely not in and around the BC market.

720
00:55:07.840 --> 00:55:10.000
Some might be, we might be looking at some people

721
00:55:10.000 --> 00:55:14.120
in Alberta, Toronto, Montreal, maybe even the US.

722
00:55:14.120 --> 00:55:17.280
What kind of options do they have for, you know,

723
00:55:17.280 --> 00:55:19.480
hands off ownership of this

724
00:55:19.480 --> 00:55:21.000
in terms of having property management

725
00:55:21.000 --> 00:55:22.920
either on the regular management

726
00:55:22.920 --> 00:55:25.260
or on the Airbnb side of it?

727
00:55:28.120 --> 00:55:29.720
Yeah, I can talk to that a bit more.

728
00:55:29.720 --> 00:55:32.400
So there are a couple of dedicated property managers

729
00:55:32.400 --> 00:55:37.400
in Princeton that we would recommend

730
00:55:37.480 --> 00:55:40.520
that are fully aligned with the project,

731
00:55:40.520 --> 00:55:43.160
one being from Century 21.

732
00:55:43.160 --> 00:55:47.640
And we've vetted these agents well

733
00:55:47.640 --> 00:55:49.800
and they perform extremely well.

734
00:55:49.800 --> 00:55:53.040
So we have that covered fully.

735
00:55:53.040 --> 00:55:56.480
We also have somebody who's pretty cool.

736
00:55:56.480 --> 00:55:59.280
His name is Braden.

737
00:55:59.600 --> 00:56:02.080
You may know him as Mr. Airbnb on social media.

738
00:56:02.080 --> 00:56:07.080
He's one of the more popular hosts in Canada.

739
00:56:07.800 --> 00:56:10.120
And he's fully on board with this project.

740
00:56:10.120 --> 00:56:12.240
This is the only project in British Columbia

741
00:56:12.240 --> 00:56:14.360
that he'll put his name behind.

742
00:56:14.360 --> 00:56:17.960
So if you wanted to use his services and his expertise,

743
00:56:17.960 --> 00:56:22.680
he would gladly be your host for short-term rental.

744
00:56:22.680 --> 00:56:24.640
So we have everything covered

745
00:56:24.640 --> 00:56:26.200
and we can provide more information

746
00:56:26.200 --> 00:56:28.720
about these service providers.

747
00:56:29.280 --> 00:56:30.400
And I just wanted to point out too,

748
00:56:30.400 --> 00:56:31.280
so bringing that up,

749
00:56:31.280 --> 00:56:33.880
we did factor that into our calculation as well.

750
00:56:33.880 --> 00:56:38.120
And 18%, obviously Airbnb is a higher percent management fee

751
00:56:38.120 --> 00:56:40.200
and yet you're paying 18%

752
00:56:40.200 --> 00:56:42.880
and you're still cash flowing significantly in that market.

753
00:56:42.880 --> 00:56:46.480
So these continue to show the performance

754
00:56:46.480 --> 00:56:48.760
that is possible in this area.

755
00:56:49.880 --> 00:56:51.000
I mean, I just want to add,

756
00:56:51.000 --> 00:56:53.520
as someone who ran multiple Airbnbs

757
00:56:53.520 --> 00:56:55.480
all over the Fraser Valley,

758
00:56:55.480 --> 00:57:00.480
I ran at about 24 day average for the entire year

759
00:57:00.520 --> 00:57:01.960
across all my properties.

760
00:57:01.960 --> 00:57:05.600
I mean, it was no problem to be full all the time.

761
00:57:12.800 --> 00:57:14.240
That's amazing.

762
00:57:14.240 --> 00:57:16.520
It's all I can say, you know.

763
00:57:16.520 --> 00:57:17.360
Cashflow.

764
00:57:17.360 --> 00:57:18.760
I don't know where those people are staying now

765
00:57:18.760 --> 00:57:20.120
because I can't help them.

766
00:57:20.320 --> 00:57:21.160
Yeah.

767
00:57:22.800 --> 00:57:25.960
In their car, I'm thinking, right?

768
00:57:25.960 --> 00:57:27.360
Walmart parking lot.

769
00:57:27.360 --> 00:57:28.200
Yeah.

770
00:57:28.200 --> 00:57:29.040
Oh boy.

771
00:57:29.040 --> 00:57:30.880
There's more and more of those happening.

772
00:57:32.520 --> 00:57:36.800
And for multiple reasons too, you know.

773
00:57:36.800 --> 00:57:38.240
So I really wanted to get a chance

774
00:57:38.240 --> 00:57:39.400
to thank you guys so much.

775
00:57:39.400 --> 00:57:40.920
I appreciate it so much.

776
00:57:40.920 --> 00:57:43.360
If those of you who are listening or watching

777
00:57:43.360 --> 00:57:45.640
want to get in contact with Kelly and Cam,

778
00:57:45.640 --> 00:57:47.520
want to get some more information,

779
00:57:47.560 --> 00:57:49.480
we are posting this opportunity

780
00:57:49.480 --> 00:57:51.600
in your Keyspire Connect app.

781
00:57:51.600 --> 00:57:53.520
You will find it under the deals of the week.

782
00:57:53.520 --> 00:57:56.880
You'll also find it in our upcoming previews.

783
00:57:56.880 --> 00:58:00.200
So we'll have this video recorded

784
00:58:00.200 --> 00:58:01.880
and then replayed in there.

785
00:58:01.880 --> 00:58:04.640
So you'll get a chance to get all the detailed information

786
00:58:04.640 --> 00:58:06.320
that you need for the project,

787
00:58:06.320 --> 00:58:08.960
as well as the four ways to win.

788
00:58:08.960 --> 00:58:11.040
If you have any questions, as I mentioned,

789
00:58:11.040 --> 00:58:15.240
reach out to us at keyspire at referralnetworkrealty.com

790
00:58:15.240 --> 00:58:17.920
or you can click your Keyspire Referral Network

791
00:58:17.920 --> 00:58:21.200
Realty Manager contact in there, book a call,

792
00:58:21.200 --> 00:58:22.880
and we'll be happy to get you guys connected

793
00:58:22.880 --> 00:58:24.280
to Kelly and Cam.

794
00:58:24.280 --> 00:58:25.720
Kelly, you had something else to say?

795
00:58:25.720 --> 00:58:28.320
I just wanted to add one more thing.

796
00:58:28.320 --> 00:58:31.120
The deposit structure is extremely low.

797
00:58:31.120 --> 00:58:33.960
It's like 5%, two and a half, two and a half.

798
00:58:33.960 --> 00:58:36.920
So, I mean, it's very little cash to tie up

799
00:58:36.920 --> 00:58:39.960
for such a great project, you know, opportunity.

800
00:58:39.960 --> 00:58:42.680
And how many opportunities do we have in the building?

801
00:58:43.680 --> 00:58:46.800
So you say there's 25 or 30 units

802
00:58:46.800 --> 00:58:50.040
that we'd be able to make available to members?

803
00:58:50.040 --> 00:58:52.800
Yeah, I would say we could, for you guys,

804
00:58:52.800 --> 00:58:55.280
we can make 30 available.

805
00:58:55.280 --> 00:58:56.960
And the two and a half and two and a half

806
00:58:56.960 --> 00:58:58.200
for the second and third deposit

807
00:58:58.200 --> 00:59:01.840
are only for Keyspire members and for Kelly Frye's team.

808
00:59:01.840 --> 00:59:02.920
That's not to the market.

809
00:59:02.920 --> 00:59:04.880
So normally it's five and five,

810
00:59:04.880 --> 00:59:08.680
but we can make it more flexible for your team, no problem.

811
00:59:08.680 --> 00:59:11.400
And no assignment fee too.

812
00:59:11.400 --> 00:59:12.240
Yeah.

813
00:59:13.000 --> 00:59:14.240
We're going to remove the assignment fee

814
00:59:14.240 --> 00:59:19.240
for Kelly Frye and Keyspire customers.

815
00:59:19.840 --> 00:59:23.280
And I want to add one other thing that we've noticed

816
00:59:23.280 --> 00:59:25.800
that's been really successful for members

817
00:59:25.800 --> 00:59:27.160
is the sense of community

818
00:59:27.160 --> 00:59:29.640
that we actually are able to obtain

819
00:59:29.640 --> 00:59:32.480
by billing with multiple members in a building.

820
00:59:32.480 --> 00:59:35.200
It's a, you know, strength in numbers,

821
00:59:35.200 --> 00:59:38.040
camaraderie feel to the organization

822
00:59:38.040 --> 00:59:40.920
and the ability and success of these projects.

823
00:59:40.960 --> 00:59:42.480
You know, we've had great success

824
00:59:42.480 --> 00:59:45.080
with some of our Keyspire community projects

825
00:59:45.080 --> 00:59:48.280
in the Ontario market, in the Alberta market.

826
00:59:48.280 --> 00:59:50.320
Now we've finally got something here

827
00:59:50.320 --> 00:59:53.640
that I think is really unique in a really cool location

828
00:59:53.640 --> 00:59:55.320
with all of the check boxes

829
00:59:55.320 --> 00:59:57.960
that people want to look at in an investor market.

830
00:59:57.960 --> 01:00:00.080
This is a, not just a place for one.

831
01:00:00.000 --> 01:00:03.180
individual to be able to buy in, but it's a chance for people to

832
01:00:03.180 --> 01:00:06.360
work together as a team to really bring something together

833
01:00:06.360 --> 01:00:08.640
within a community that we can be proud of.

834
01:00:10.000 --> 01:00:12.880
And to your point, Mike, I've experienced this on projects

835
01:00:12.880 --> 01:00:16.120
where we sold a lot for Keyspire. We can then stack the

836
01:00:16.120 --> 01:00:19.680
Strata Council with all Keyspire members, which means it's pro

837
01:00:19.680 --> 01:00:23.280
investor, and you know, we stop any insanity from happening.

838
01:00:23.920 --> 01:00:27.080
Just to that point as well. I mean, as much as the community

839
01:00:27.080 --> 01:00:31.800
is trying to promote Airbnb, at the end of the day, the Strata

840
01:00:31.800 --> 01:00:34.880
can still pass bylaws in British Columbia. So if you do have a

841
01:00:34.880 --> 01:00:37.920
community, you know, Selim can only do so much, but once he's

842
01:00:37.920 --> 01:00:39.760
out of the building, and it's all into the hands of the

843
01:00:39.760 --> 01:00:43.720
owners, they need to make sure that they maintain the bylaws

844
01:00:43.720 --> 01:00:46.120
in a way that are investor friendly and continue to

845
01:00:46.120 --> 01:00:48.920
perform well. And so if you've got a large community of

846
01:00:48.920 --> 01:00:51.920
investors that all get together purchasing this building, go on

847
01:00:51.920 --> 01:00:55.640
the council and make sure this building is run efficiently, at

848
01:00:55.640 --> 01:00:58.440
the same time investor friendly, that will protect your

849
01:00:58.440 --> 01:00:59.400
investment long term.

850
01:00:59.800 --> 01:01:02.280
That's terrific. I really appreciate you guys coming out

851
01:01:02.280 --> 01:01:06.240
today. I love the opportunity. I'm excited to get it out to all

852
01:01:06.240 --> 01:01:08.840
the membership. I'm hoping that we're going to have lots of

853
01:01:08.840 --> 01:01:12.440
members that are interested in the area. And we look forward to

854
01:01:12.440 --> 01:01:14.800
getting a chance to do another call with everyone soon.

855
01:01:16.080 --> 01:01:16.840
Awesome. Thank you.

856
01:01:17.120 --> 01:01:19.080
Thank you, everyone. Thanks.