When Bruce Stewart was planning to develop the Founders Residences, he wanted to create a model that was a win-win for its senior residents and for the clients who purchased condominiums there. It’s for that reason that Stewart brought on a management company with a unique program called TermVest™.
If opted into, the TermVest™ structure allows the development purchasers to benefit from the three most important pillars of real estate: rental income, market appreciation and mortgage pay-down. All day-to-day property management tasks are taken care of including the payment of property taxes and maintenance fees.
The TermVest™ program delivers monthly cash flow to each purchaser with a five-year condominium lease in place from day one. Upon expiration of the lease, the management company will then purchase the units from the owner at the then current market value with a stipulation it will be for no less than the original purchase price. This commitment creates a safety net and gives purchasers peace-of-mind going into the sale. It also helps to avoid being surprised by a lot of typical things that can go if purchasers decided to lease the unit themselves.
Stewart believes the TermVest™ structure is perfect for real estate buyers that believe real estate is a great wealth building product but don’t want to be hands-on with all duties and responsibilities. The program combines monthly cashflow, mortgage paydown, and the potential for market appreciation while limiting the downside if we see a market correction.