Hectare Investments Ltd. (“Hectare”) is a privately-owned Canadian company that was incorporated in 1993, and was formed to purchase its first commercial property located at 6770 Davand Drive, Unit #43 in Mississauga, which it still owns today. The company now owns several investment properties throughout Mississauga and Brampton, Ontario.
The principal of the company, Dan Bates, has focused on other business interests over the past few years, and now in 2016, has included Hectare Investments and its’ future growth. The company intends to purchase additional properties over the coming years, throughout Mississauga, the GTA and surrounding areas as various opportunities arise. The philosophy of Hectare is straight forward. By borrowing against the property being purchased, with a positive cash flow from the time of purchase and closing the deal with a AAA tenant, secured by either commercial bank letters of credit, insurance bond guarantees for professionals (lawyers, dentists etc), personal guarantees or other forms of security, Hectare will continue to enjoy a high level of success.
Hectare has developed a unique niche to date by purchasing only properties that are managed by a registered Condominium Corporation. The advantages to this type of purchase is that all structural, landscaping, roof and other common areas, such as electrical room, sprinkler system, plumbing, insurance, etc. and other expenses are covered in the monthly Condominium Fees. These fees are paid each month by the Tenant to Hectare, so with the Reserve Fund in place, Hectare has virtually no maintenance costs or physical property risks. Hectare collects all net rent and additional rent in advance each month, with the final month’s rent held on deposit, and in some cases a security deposit against damages. By collecting all rents in advance each month, Hectare is then in control of paying and ensuring that all Property Taxes, Condominium Fees and Insurance Premiums are always in good standing. All leases are triple net leases, therefore making the Tenant 100% financially responsible for all maintenance and/or improvements inside each property. The company also charges a monthly management fee and maintenance fee. The additional maintenance fee is charged for replacement of carpet, new paint, window coverings or minor repairs inside the unit once a tenant leaves.
Hectare has designed a system to search for quality properties and through a rigid due diligence process and experienced negotiating skills will purchase the properties to grow the portfolio. Dan Bates is a registered and practicing real estate broker, so priority is given to avoiding vacancies, virtually eliminating or greatly reducing this as an expense. Developing and maintaining relationships with a team of real estate professionals, including commercial real estate agents, mortgage brokers, accountants, lawyers, property managers, local Chambers of Commerce, Economic Development Officers and other real estate investors has been tantamount to Hectare’s success.
Hectare now intends to grow the company by offering Joint Venture opportunities to selected investors seeking real estate investments. The company is committed to offering sound investment opportunities with integrity and devotion to professionalism while ensuring open communication and a strong commitment to the project.
As a member of REIN (Real Estate Investment Network), Hectare Investments and Dan Bates have access to Canada's premier real estate resource centre, which provides world-class real estate analysis, research and leadership to over 24,000 investors since 1992. REIN allows the company to align itself with highest-quality member experiences and a community of trusted, respected real estate experiences. Many of the "Articles of Interest", (section 14) are from the REIN Real Estate report printed each month.
In summary, Real Estate is not a suitable investment for everyone. Real Estate investing has risks associated with it. There are no guarantees that Real Estate will rise in value; in fact it could drop in value. While Hectare will always endeavor to provide as much due diligence as possible before any purchase, investors are always encouraged to seek their own information including legal and tax advice.