What is a Konfidis Top Reviewed Property?

Konfidis’ revolutionary investment platform combines the expertise of Canada’s top real estate and financial investment advisors with data and analysis. We use the latest in tech and big data to provide user-friendly reports and features to empower seasoned and novice investors alike to make sound real estate investment decisions.

We’ve become one of Canada’s leading real estate investment companies by identifying and curating listings of investment properties in Ontario that are expected to outperform the market. More importantly, these properties may not necessarily be close by.

With our Top Reviewed Property feature, we highlight the most anticipatedly profitable properties throughout Ontario to help investors narrow down their options. By serving up properties that have been identified as the best of the best, we help take the fear out of real estate investing for new investors and provide experienced investors with valuable time savings.

When you are ready to act on a Top Reviewed Property, we walk you through the financial calculations and make the comparison, evaluation, and purchase process seamless and easy to understand.

How Does Konfidis Identify Top Properties for Investment?

Our Top Reviewed Property feature provides a showcase of the top investment properties selected by our algorithm and vetted by our experts.

Like the Konfidis platform itself, the Top Reviewed Property feature tracks and factors in crucial data points of a property and everything happening around it that impacts its value as an investment.

Some of the key data we research and analyze to identify top investment properties include:

• Cities with optimal house price appreciation for investors, i.e., where house prices are expected to rise and increase the property value.

• Comparable sold listings & predicted selling price – We look at similar properties that have recently sold in the area and use the listed price, final sale price, and number of days on the market to predict what a property will sell for/how much it will cost to purchase.

• Comparable rental listings & expected rental income – We also look at local, comparable properties that were available to rent, what the listed rental price was, how much it is currently being rented for and the number of days it was listed on the market before a tenant took occupancy to accurately forecast how much an investor can reasonably expect to earn in rental income.

There are other factors and characteristics our experts consider that differentiate Konfidis’ analyses from the advice you would receive from a real estate sales representative to give investors deeper insights and more accurate predictions of an investment property’s potential. Keep reading to learn some of the other factors we look at in identifying a Top Property.

1. Tracking & Monitoring

Our cutting-edge proprietary tech combines input from real estate and financial experts with real-time big data to track and monitor crucial data points that have the greatest impact on the profitability of investment properties. Some of the factors we track and monitor include:

Transit

A key element affecting the selling price and amount of rent an investment property accrues over time is its access to transit. This includes its proximity to highways and public transportation, such as subways, LRTs and GO Transit.

The Konfidis platform takes real estate investment guidance to the next level by also tracking transit routes that are in the planning and development phases. Tracking up-to-the-minute information on future transit availability provides a more accurate, deeper insight into a property’s long-term revenue generating potential.

Schools

The number of quality institutions accessible to an investment home is critical to its value. The Konfidis real estate investing platform uses Frasier Institute scoring as part of our consideration by factoring in the proximity of high-performing schools to help you find the most desirable neighbourhoods families want to live in for optimal returns on your investment capital.

Costs

Costs including capital expenditures required upfront on expenses such as renovations and land transfer taxes are factored into the financial calculations used to accurately identify your profit margins. More details are provided in the Due Diligence section below.

Location

Location plays a significant role in the value of a property. The Konfidis platform gives you a real-time heat map that quickly illustrates regions across Ontario that generate the highest gross yields for income investors and house price appreciation rates for total return real estate investors. It also allows you to add filters to narrow down your search and create email and SMS alerts to notify you when new properties become available.

2. Data Science

The reality is that the best returns and fastest growing markets are often in overlooked areas. By following proven Data science techniques, Konfidis is able to find the best areas, communities, and properties with investment potential across Ontario. Our algorithm is informed by real estate, tech and financial experts and uses aggregated data on other key variables such as recent and historical purchase prices, location profitability, operating costs, current and historic rental income in an area and more.

3. Pre-Selection

Using the set parameters and real-time market data, the Konfidis algorithm pre-selects properties listed for sale, tracks the related activity and alerts our team. We then do a deep dive on these pre-selected properties to determine which can be identified as a Top Property.

The Konfidis Due Diligence Process

Our Top Property due diligence reports combine all the information gathered during the pre-selection process and combines it with a site visit by one of our real estate local professionals to answer these key questions:

• Why am I looking at this property?

• What is its rentability?

• What will be the property appreciation?

• What will it sell for?

• What is the condition of the house and are there any issues with it?

Our due diligence reports are designed to provide a 360⁰ view of an investment property, the upfront capital required, maintenance and operating costs and investment return potential so that you can easily compare investment properties, make an informed investment decision and even make a purchase without visiting a property if need be.

Our due diligence reports are based on two key elements:

Financial Analyses

To help you determine a property’s potential profitability, key financial metrics are calculated using the estimated selling price and rental income. Our real estate and financial experts crunch the numbers to find the most profitable for the Top Property feature. These benchmarks include:

• Total uses of funds which includes closing costs such as the purchase price, land transfer tax, legal fees, and disbursements.

• Monthly and annual rental income minus bad debt and vacancy allowances.

• Operating expenses paid by the landlord that may include property taxes, utilities, municipal services, insurance, repairs and maintenance.

• Net operating income calculated by subtracting the operating expenses from the rental income and expressed as a percentage and monthly and annual dollar amounts.

• Gross yield to show an investment property’s top line revenue as a percentage of the purchase price (asset value).

• Capitalization (Cap) rate for a quick indication of the rate of return on an investment property using its net income as a percentage of the initial investment. Cap rate does not include mortgage expenses, future cash flows the time value of money among other considerations.

• An estimated 5-year internal rate of return (IRR) that excludes external factors such as financial risk, inflation and cost of capital among other factors.

• Levered pre-tax cash flow which shows the predicted profitability (before tax) of a property by including future cash flows anticipated with property improvements minus interest and fees on borrowed capital.

• Levered pre-tax cash flow yield which is a property’s pre-tax profitability calculated using levered pre-tax cash flow divided by the total equity needed to complete the purchase. It’s used to compare the cash flow of an investment property after mortgage payments over a specific time period to the total cash invested in the property.

• Annualized total return which shows your return on investment as a percentage that includes rental income growth, expenditure growth, home price appreciation, levered pre-tax cash flow, and paying down the principal on a mortgage.

Visual Inspection

After the Konfidis algorithm identifies properties with potential to outperform the market, a member of our team performs an on-site inspection to physically review the property. They do a room-by room examination, take notes and photos that are included in a detailed due diligence report based on our comprehensive 50-point checklist.

Our real estate expert scrutinizes the property and ensures that every detail is reported including:

• Lot size and room dimensions.

• Number of bedrooms and bathrooms.

• Type of heating and cooling used.

• Property type.

• Type and condition of the roof.

• Basement description.

• Type and condition of driveway and number of parking spaces.

• Type and condition of exterior walls, windows, foundation, landscaping, decks/patios, etc.

• Details on the furnace, hot water heater, electrical panel, wiring, plumbing and security systems.

• Features such as flooring, lighting, condition of bathrooms, kitchen and appliances.

Making a Bid on a Top Reviewed Property

So how does it work if, for example, you decide to make an offer on an investment property in London, Ontario? Simply contact Konfidis to set up a screening appointment at a time that’s convenient for you.

After your acceptance, our team guides you through the acquisition and closing process and represents you for the purchase, negotiates the bid on your behalf, coordinates with all involved parties for you and closes the deal.

Be the proud owner of an investment property tenants want to live in that generates returns that outperform the market.