How to find real estate investment partners in Atlantic Canada

The short answer

To find a real estate investment partner in Atlantic Canada, be specific about the kind of partner you need, then put yourself in the rooms where active investors and owners already are: private networks, industry associations, investor meetups and conferences. Ask your lawyer, accountant and mortgage broker who is active. Bring a one-page summary of the deal and of yourself, and put the terms in writing before any money moves.

First, decide what kind of partner you need

"Partner" covers very different roles, and the right place to look depends on which one is missing from your deal.

• A capital partner. You have the deal and the ability to run it, and you need equity alongside your own.
• An operating partner. You have capital and want someone with the experience to find, build or manage the asset.
• A partner for the financing. Lenders look at the net worth and track record behind a loan. A partner with a stronger balance sheet or more experience can change what a lender will offer.
• A development partner. A landowner and a builder, or a developer and an investor, each bringing what the other lacks.

Write down which of these you are, and which you are looking for. It is the first thing a serious person will ask.

Where partners actually meet in Atlantic Canada

Private networks

Commercial Group Canada is a private, by-application network of commercial real estate investors, owners, developers and selected professionals across Atlantic Canada. It holds invite-only evenings in Halifax and runs a members' deal room between them. It is free to join, and the room is built primarily for investors and owners.

Industry associations

Associations bring owners and developers together around advocacy, education and trade events. In Nova Scotia these include Rental Housing Providers Nova Scotia for rental property owners, the Urban Development Institute of Nova Scotia for the development industry, and BOMA Nova Scotia for commercial building owners and managers. New Brunswick and Prince Edward Island have their own rental housing provider associations.

Investor meetups and conferences

Open investor meetup groups run in Halifax, Dartmouth and Moncton, with one for Prince Edward Island, and are a good place to learn and to meet people early in their investing. The Atlantic Real Estate Forum is an annual commercial real estate conference in Halifax. All of these are compared in the guide to investor groups in Atlantic Canada, and dated events are on the events page.

Your own professionals

Commercial mortgage brokers, lenders, real estate lawyers, accountants and commercial realtors see who is buying, building and looking. Tell them plainly what you are looking for. An introduction from someone both sides trust is worth more than a cold approach.

People already in your deals

Co-owners, vendors, contractors and property managers from past transactions already know how you work. Many partnerships are a second deal between people who met on a first.

What to bring to the first conversation

You do not need a glossy package. You need to be clear and honest on one page.

• The asset. What it is, where it is, and why this one.
• The numbers. Price, current income and expenses, the financing you expect, and the equity required. Say which numbers are actual and which are projections.
• The plan. What you will do with the property, how long you expect to hold it, and how a partner gets their money back.
• Your role and your track record. What you have done before, what you will do on this deal, and how much of your own money is going in.
• What you are asking for. The amount, the role, and the structure you have in mind.
• The risks. What could go wrong and what you would do about it. People trust the person who raises the problems first.

Common ways partnerships are structured

These are the structures investors most often discuss. Which one fits depends on tax, liability and financing, and those are questions for your lawyer and accountant, not for a guide.

• Co-ownership. Two or more people or companies hold title together and sign a co-ownership agreement covering decisions, costs and exits.
• A joint venture. The parties sign a joint venture agreement for a specific project and each keeps its own interest. A joint venture is generally a contractual arrangement and not a separate legal entity. The label does not settle it, though: an arrangement called a joint venture can still be a partnership in law, with different tax and liability results.
• A corporation. The partners are shareholders of a company that owns the property, with a shareholders' agreement between them.
• A limited partnership. A general partner runs the project and limited partners invest passively. This is the usual form for a syndication.

How to vet a partner

• Check the track record. Ask for specific past projects, then confirm them. Talk to people who have been in deals with them, including lenders.
• Check the company. Corporate registries are public. In Nova Scotia, the Registry of Joint Stock Companies shows who is behind a company. Your lawyer can search for judgments and liens.
• Check for alignment. How long do they want to hold? What happens if the project needs more money? Who decides when to sell or refinance?
• Agree on the hard cases now. Default, death, disability, divorce and disagreement. If you cannot agree on these while things are friendly, you will not agree on them later.
• Put it in writing. Have a lawyer draft the agreement, and have each side get its own advice, before any money moves.

Getting value from a room

Networking in real estate works the way it does anywhere else, with a few specifics.

• Be specific. "I'm looking for a partner on 12 to 30 unit buildings in Dartmouth" gets introductions. "I'm open to anything" does not.
• Ask about them first. What they own, what they are working on, what they need. The best partners are found by being useful.
• Do not pitch a room. Have conversations. If a deal is right for someone, a one-to-one follow-up is the place for it.
• Follow up within a few days, with something concrete: the introduction you promised, the summary they asked for.
• Keep showing up. Trust in a small market is built over several conversations, not one.

Next step

If you invest in, own or develop commercial property in Atlantic Canada, apply to join Commercial Group Canada. There is no fee, applications are reviewed personally within 3 to 5 business days, and the next evening in Halifax is on the events page.