Online Marketplace

Invest in LPS with preferred return.

General Info

All about equity capital raise and investment process

Agreement & On-boarding

Capital Flow Network (Capital Partner) enters into an initial agreement with Developer.

Deal Preparation

Capital Flow Network engages it’s own solicitors to review and/or draft detailed LP or Pref Share.

Vetted & Screened Sponsors

Sponsor and real estate project is vetted in full detail and screened by Capital Flow Network.

Marketplace Distribution

We are online portal + financial advisory team to distribute the product to it’s qualified.

FAQ'S

Capital Flow Network is an online portal for real estate investing and capital raising. Qualified Investors are able to invest in commercial real estate investments online through our simple and secure online platform.

Our team has decades of experience working with large Financial and Real estate firms such as BMO, RBC, CIBC, JLL and more. We tend to use large and credible firms for underwriting and due diligence help. For e.g., Colliers for valuation services

Only sophisticated and high net worth investors are typically allowed into our deals. Individuals who are interested will have to apply through our online portal and if we feel that they are sophisticated enough and have sufficient financial capacity, we allow them to start investing with us.

We use similar encryption that is used by major banks all over the world. We also use advanced technology to monitor and prevent security breaches.

All of our investors and developers are vetted and approved before membership access is granted. Each of our real estate deals and projects are thoroughly checked and vetted before being approved.

Capital Flow Network is approved as an EMD in 7 Canadian provinces under “The Securities Act”

Every investment including GIC, Mutual Funds, Stocks and Bonds carry inherent risk. Real Estate investing via REITs, MICs, Private REITs or LPs is no different. While we endeavor to mitigate risk as much as we can during our deal structuring process, it can never be fully eliminated. For e.g., construction delays, cost over-runs can reduce or eliminate returns.

We encourage our investors to put their capital in multiple deals instead of one in order to further mitigate risk by way of diversification.

Every investment including GIC, Mutual Funds, Stocks and Bonds carry inherent risk. Real Estate investing via REITs, MICs, Private REITs or LPs is no different. While we endeavor to mitigate risk as much as we can during our deal structuring process, it can never be fully eliminated. For e.g., construction delays, cost over-runs can reduce or eliminate returns.

We encourage our investors to put their capital in multiple deals instead of one in order to further mitigate risk by way of diversification.

 
 
 
 

Yes. Funds are transferred electronically via strategic payment gateway partner that is a publicly listed TSX company. Investor’s funds are held in a trust account with RBC/CIBC.

Investors

All about equity capital raise and investment process

Investors: Institutional + Retail

Our investments are not open to the general public. We are highly selective on who we allow becoming our investor.

Invest Digitally or in Person

We thoroughly underwrite each and every deal that we bring to our investors.

Curated Product

We conduct a very rigorous analysis of every investment that goes on our portal. Some of the key files that are available for your perusal

Your Portfolio Online

Monitor your portfolio of property investments 24/7. features real-time analytics

Capital Flow Network tends to act in the capacity of a “capital partner” at the project level. For e.g., on the Development LPs, Capital Flow Network will often work for several months with the developer to conceptualize the project, assess it’s capital needs, define an appropriate legal structure and pref return for the investor etc. Unlike, a typical EMD, Capital Flow Network will actively negotiate preferred terms on behalf of it’s investors, will work on sourcing senior/mezz debt and ensure sufficient capital is available to get the project to it’s completion. Ultimately, project sponsor i.e the developer is responsible for project completion but Capital Flow Network acts as a second set of eyes on the project and gets compensated to do so.

We interview all of our sponsors in person and underwrite the deals fully after reviewing third-party property reports like Appraisals, Building reports, Environmental reports etc. Property cash flow for the last 3 years is also analyzed along with future cash flow projections. We also review leases, perform property visits and do tenant background checks. Most of the deals on our platform have secured senior debt through one of Canada’s major financial institutions (FI).

R2 is an Exempt Market Dealer in ON, AB, BC, MB, NS, QC & SK. After you create an account on our platform, we perform a verification of your investor status and grant access if we find that our investments are suitable for you.

We offer the following types of investments:

– MICs
– Private REITs
– Income producing property LPs
– Development project level LPs

Our portal offers a wide variety of curated deals that are diversified across geography and asset type: retail, office, industrial, apartments, mixed-use, student housing, seniors housing, self-storage, and more. We offer investment projects outside of Canada as well.

Our underwriting group conducts a detailed review of various projects that come across our desk. Typically, every investment Capital Flow Network has an appraisal completed by an AACI who follows the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), which establishes an independent opinion of value. Whenever possible the appraisal is completed by our valuation partner – Colliers. Our principals worked with Canada’s largest Financial Institutions like BMO, RBC, CIBC, Sunlife etc in the past and have underwritten billions of dollars in real estate transactions. We use the similar rigour of underwriting on our projects; which includes a thorough rent roll review, cash flow stabilization, 3 year historical financial analysis, investigation and background checks into the sponsors, among other things to evaluate each project before it is listed.

Sponsors & Developers

All about equity capital raise and investment process.

Relationships are the key

We only work with property owners that are reputable and have good projects from a viability and economical/financial standpoint.

Capital is global today.

Equity financing in a way that is most conducive to project ROI. We use the power of technology to scale product distribution.

How do we raise Debt?

Having financed billions of dollars of real estate in Canada and US, we have a deep network of traditional relationships in the industry.

Capital is global today

Our principals were key executives at JLL (a global CRE powerhouse) prior to launching this platform and through their past affliliations and partnerships.

Industry 3rd Party Partners

Principals of R2 through their past employment at large FI’s such as CIBC, BMO, RBC, Sunlife & JLL have financed billions of dollars in real estate and have well established relationships with Industry consultants such as Appraisal, Environmental, Building Engineers, Lawyers, Financial Institutions, Title insurance and Payment firms that are well recognized by industry practitioners. These relationships allow us to conduct proper due diligence on each file.