FAQ
Do you require a minimum investment?
No. League was founded on the belief that our relationship with our Member-Partners is much more important than any principal amount they choose to invest with us in any one project. We have never set minimum investment requirements for any of our syndications, nor do we intend to in the foreseeable future.
Am I required to be an "Accredited Investor"?
No, unless you are a resident of the Provinces of Ontario or Quebec. At present, investors residing in Ontario or Quebec are subject to different securities regulations than those living in the rest of Canada. For instance, a resident of Ontario or Quebec who is not an accredited investor must invest a minimum of $150,000 to participate in a syndication. Elsewhere in Canada, there is no minimum investment requirement. To qualify as an accredited investor, the Securities Commissions allows you to select from several criteria, but the most common are these:
- an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000, or
- an individual whose net income before taxes exceeded $200,000 in each of the two most recent years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent years and who, in either case, reasonably expects to exceed that net income level in the current year, or
- an individual who, either alone or with a spouse, has net assets of at least $5,000,000. (See link below for more detail.)
A checklist of accredited investor qualifications can be found at: www.league.ca/pdf /aichecklist.pdf
How can you offer such high returns?
We have constructed our organization from the ground up to do the following things better than anyone else: To find, acquire, improve, and manage real estate properties with high profit potential, and to offer those opportunities directly to other like-minded investors in Member-Partnership. By combining the skill and experience of our team leaders and staff, we are able to accomplish greater results, faster.
But perhaps the simplest reason is that, unlike most syndicators, we at League roll up our sleeves and start rejuvenating tired properties that have unrealized potential. (See: League's Investment Guarantee).
Why do you call your investors, "member-partners"?
We invite new friends to become our members, and we and our staff in turn partner with them by investing our capital alongside theirs. Any units owned by League directors or staff have the same rights and restrictions as any of our Member-Partners.
What are your criteria for membership?
Because syndications are group investments, we believe that the more our Member-Partners have in common, the more stable the investment will be. When you join League in Member-Partnership, you become a Member in a like-minded group, as well as a Partner in our investments. It is a two-step process.
First you qualify as a potential Member candidate by showing that you are like-minded. This means you have read the Blue Book thoroughly, and then demonstrate to a League Member Services Manager that you understand the investment basics presented therein and identify with League's core values as well.
Next, you identify yourself as a candidate for Partnership by demonstrating that you have read and understand the Investment Overview and Offering Document for the investment you are interested in, as well as its risks and potential rewards. And finally that you are confident that through League's incentive compensation structure (also known as League's Investment Guarantee) management is motivated to continuously improve value of the investment.
So, before we invite you on as a Member-Partner, we want to make sure your interests will align with the others in your syndication group and that you are truly able to make an informed investment decision on your own. If we all agree, you will be welcomed as a full Member-Partner. This may seem a little out of the ordinary, but ours is a private investment firm, and being so allows us to be as old-fashioned (and selective) as we wish.
As a unitholder, what do I actually own?
Whatever the form of syndication, your interest in the properties is an indirect one. This legal structure is designed to protect every unitholder from liability. Title to the property is registered at the Land Titles office in the region in which the property is located, and in the name of the entity that holds title in trust for the Partnership.
Do I invest in one property, or all of them?
It depends. You may choose to become a unitholder of a Limited Partnership which may invest in just one property, or of the IGW REIT, which holds many properties. In either case you would share proportional ownership in all the properties currently in the asset pool, as well as any properties acquired in the future for that pool, if any.
Can I invest directly from my RRSP?
In the REIT, yes. League's RELPs are eligible on a case by case basis. Please call for more information.
How large is your territory?
At present we are focusing on real estate within Canada. We believe that Canada's strong economy, stable political system, and its abundance of natural resources, make it the best place in the world to invest in real estate. In addition, we eliminate any risk due to currency fluctuations.
What are your criteria for choosing properties to syndicate?
To qualify for acquisition, each property must exhibit all of the following characteristics:
- Advance successfully through each stage of our rigorous due diligence, risk, and future income analyses;
- Be a suitable long-term holding property to fulfill our mission to promote and sustain Intergenerational Wealth for our Member-Partners' families;
- Have the potential for revenue growth and capital appreciation;
- Have the potential to deliver our targeted return on investment of at least 15% per annum; and
- Exhibit strong upside potential through the filling current vacancies or adding new leasable space, increasing rental rates, and/or development or redevelopment of the property to produce additional income and value.
Who manages the properties?
Every property we acquire is under the monitoring and managerial direction of League at all times. After all, our incentive compensation depends on it. (Go to: "League's Investment Guarantee"). On a micro-level, our property management providers manage the day-to-day operations of the properties and make sure our tenants are happy and the properties are kept in top condition.
How "liquid" is my investment?
Unforeseen personal situations may require an investor to liquidate his holdings. To allow for this, the REIT allows investors to redeem their units. RELPs are not generally redeemable, but we may be able to help you find a third-party buyer for your units. For more information, see the Investment Overview for the specific League-sponsored investment that interests you.
How much of my investment stake is diluted by management?
League takes neither ownership nor a share of the income up front, so all your money is working for you from day one. We provide full disclosure of our fees for each entity we administer in the applicable offering document or Partnership Management Agreement.
Do you ever demand cash-calls that require unit holders to invest more money?
No. League investments do not allow cash-calls to be made on investors. If the project requires additional funds at a later stage, we will raise additional capital.What happens to my income if the property burns down and the zoning changes?
As necessary, income and by-law insurance is purchased, and paid for by the tenants. If fire or an earthquake destroyed the property and by-law changes prevented the same type of structure to be re-built, the income insurance would replace the full gross rent. The by-law insurance would pay out the value of the building.
Have you ever suspended distribution of cash flow to the unitholders?
No.
How often do you keep in touch with your member-partners?
We keep members informed of all new developments by timely newsletters, announcements, audited annual statements, and in some cases, periodic reports. In short, we keep you abreast of all significant events that affect your investment.
What will my accountant need to do?
Not much. At tax time, we will provide you with your tax slip. You or your accountant will transfer the information from the slip to the appropriate space on your tax return and process it as usual.
It sounds too good to be true.
Although this is technically not a "Frequently Asked Question," we hear this comment often enough that it makes sense to address it here.
First of all, thank you for the compliment! However, we respectfully disagree. We believe that there is no such thing as being "too good." "Too good" should be the standard for the marketplace-not the exception.
We at League live by Our Credo and operate our affairs following the principles of positive interdependence. Meaning, what's good for you, is good for us, and vice versa. So, if you're still thinking "it sounds too good to be true," ask for a copy of our current Investment Overview and see for yourself.
How do I do my due diligence on a League investment?
Required disclosure regarding the investment is provided in the applicable offering document or Partnership Management Agreement in accordance with all securities commission regulations. A copy will be sent to you upon receiving your Notice of Interest (the last page of the Investment Overview). Property and project-specific updates are always available on League's website at www.league.ca/updates
How do I become a member-partner in League?
The first step is to read this Blue Book-so you're already halfway there. If then you feel that a League syndication fulfills your investment needs, and you also share our values, the next step is to download (or call to request) a copy of the Investment Overview for the IGW REIT or one of our other investment vehicles. In it, the project is clearly explained and you will be introduced to the newest acquisition target. You will learn our plans for the property, the returns it provides, and how to become a Member-Partner.
At this point you may still have some questions. This is your chance to get them answered and get to know us at the same time. When you're ready, call our office, and one of League's Members' Services Managers will make themselves available to answer your questions personally.
