Questions to Ask Before Entering a Property Investment

Real estate is tangible, which can make investment offers built around it feel safer than they are. A few questions separate sound opportunities from avoidable risks.

What exactly would I own?

Direct ownership of a property, registered on title, is very different from a unit in a fund, a share of a company or a promissory note. If you would not be on title, you are likely being offered a security.

Is the offering registered or exempt?

Securities sold to the public in Ontario generally require a prospectus or a valid exemption, and those selling them generally must be registered. The Ontario Securities Commission provides tools to check registration.

What are the returns based on?

Be cautious of promised or "guaranteed" returns. Ask what rents, expenses, vacancy and financing assumptions underpin any figures, and who verified them.

Who controls the money?

Understand where funds are held, who can move them, and what reporting you will receive.

What happens if things go wrong?

Ask how you can exit, what priority you have if the project fails, and what independent professionals have reviewed the arrangement.

Haider Real Estate Group does not offer securities or pooled investments. These questions are offered as general guidance.