Would you want to buy shares in a Kelowna real estate property? A Vancouver company is offering a new way to invest in a share of residential properties with no financial limitations. Photo: Capital News files

Would you want to buy shares in a Kelowna real estate property? A Vancouver company is offering a new way to invest in a share of residential properties with no financial limitations. Photo: Capital News files

Micro-investing in B.C. real estate properties

Company launches opportunity to buy shares in property investments

A Vancouver entrepreneur believes he is at the forefront of revolutionizing how real estate is bought and sold.

Stephen Jagger, co-founder of IMBY Real Estate Corporation, says his company has created an investment pathway that eliminates any financial barriers for property investment.

“Anyone can invest for as little as $1 and take advantage of lucrative real estate investment opportunities in Vancouver and other secondary markets such as Kelowna, Kamloops, Victoria, Nanaimo that otherwise are limited to wealthy property developers,” Jagger said.

The concept behind IMBY is for the company to invest in a 51 per cent share in a rental property, and open the remaining 49 per cent to outside investors, similar in idea to investors buying stock in a company.

In turn, the outside investment can be used as financial leverage to expand a particular portfolio by buying other properties to increase the potential value of that initial share investment.

“You might start out with a house in Vancouver, but you can use that leverage from investors to buy another house in Kelowna and maybe a townhouse in Vernon,” he said.

RELATED: Kelowna named top city for real estate investment in Western Canada

Speaking at the Okanagan chapter of the Urban Development Institute monthly luncheon at the Coast Capri Hotel in Kelowna this week, Jagger explained the genesis behind IMBY’s business concept and how he feels it will transform the future of real estate transactions.

Jagger said other companies are already looking at IMBY’s idea, adding that a major New York City hotel has already made headlines in seeking to raise $400 million by selling off a 25 per cent share in the hotel at $100 per share.

The end result was the creation of IMBY (In My Back Yard), which Jagger says they believe was the first company to offer a share of ownership of a home, a $1.6 million property in Vancouver’s Trout Lake residential area.

The offering attracted a total of 287 investors to be part of that 49 per cent interest.

“The average investment was about $4,000 and 33 per cent of our investors were in the 19 to 35 age group,” Jagger said.

“Technology hasn’t really changed the real estate game in the past 20 years. But this concept will change the game.”

Jagger said what they learned from his first deal was a wide public interest to invest in real estate for a longer-term gain as there is a five and seven year locked-in share offering provision; people were interested less in Vancouver often and more in secondary markets like Kelowna, Victoria, Nanaimo and Kamloops; the renter for the Trout Lakehouse opted to invest himself in the property.

RELATED: Real estate investment scheme turned into a fraud

“There is one benefit we see as each transaction is creating a rental opportunity to address that issue, but we see potential benefits in a renter who actually has a financial interest in the property, which gets away from that adversarial relationship between landlord and renter, and that may lend itself to the renter taking greater interest in the upkeep of the property,” he said.

Jagger said real estate agents would feel the greatest impact of this change, taking them out of the traditional equation of a house deal.

“There is good and bad in this for realtors. The big thing is we are no longer selling real estate, but selling shares in something, so the transaction doesn’t fall under real estate board rules but those of a securities commission. That changes the structure of the deal in a totally divergent way as it is governed by a totally different set of rules.”

On the plus side, Jagger thinks realtors under this deal structure would function more like a traditional stockbroker which would open other avenues for income potential to replace the traditional commission on the sale of a property.

“It would be different and a bit of a re-adjustment, but feel it will be a huge opportunity. I foresee the day when someone will want to invest $20,000 in Kelowna real estate shares, perhaps no more than $1,000 or $5,000 per property, and look to a realtor to utilize their knowledge of the local market to find those opportunities.”

Marv Beer, president of the Okanagan Mainline Real Estate Board, said he was familiar with Jagger’s business concept, saying it tends to fall under the guise of other property investment models rather than the traditional homeowner looking to buy or sell a house.

RELATED: Amazon effect in the Okanagan

“There is risk in looking for a short-return on buying and selling houses in a volatile market, especially when you see how the Vancouver market has tanked right now. I might be attractive for people with an appetite for risk on a smaller scale,” Beer said.

While technology has introduced changes in how people buy and sell homes, he said the role of the real estate agent has remained a central element of the transaction who helps guide buyers and sellers through the process.

“That’s what we do for a living and we are experts in that. A lot of people still want that person involved in a transaction because it offers some sense of security, ” Beer said.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Carolyn Howe, a kindergarten teacher and vice president of the Greater Victoria Teachers’ Association, says educators are feeling the strain of the COVID-19 pandemic and the influx of pressure that comes with it. (Nina Grossman/News Staff)
Stress leave, tears and insomnia: Greater Victoria teachers feel the strain of COVID-19

One year in, teachers still adjusting to mask and cleaning rules, pressure from families

Richard Pierce is the Goldstream Gazette’s 2021 Unsung Hero of the Year. (Don Denton/Black Press Media)
Navy veteran helping others cope with post-traumatic stress disorder

Rich Pearce is the West Shore 2021 Unsung Hero

The value of new construction in North Saanich topped $52.1 million in 2020 (Peninsula News Review)
Value of new construction in North Saanich topped $52.1 million in 2020

New figures also show 25 per cent increase in number of new secondary suites

Greg Chow is the 2021 Local Hero of the Year. (Don Denton/Black Press Media)
Fighting fire a family affair for Colwood Assistant Chief Greg Chow

With 38 years of service, Greg Chow is the 2021 Hero of the Year

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

Dr. Bonnie Henry talk about the next steps in B.C.'s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
456 new COVID-19 cases in B.C., 2 deaths

Since January 2020, 78,278 have tested positive for the novel coronavirus in B.C.

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Feb. 23

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

(Black Press Media File Photo)
POLL: Are you struggling with Greater Victoria’s cost of housing?

While Victoria remains one of the most expensive cities in the country… Continue reading

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

According to a new poll, a majority of Canadians want to see illicit drugs decriminalized. (THE ASSOCIATED PRESS)
Majority of Canadians think it’s high time to decriminalize illicit drugs: poll

More than two-times the B.C. residents know someone who died from an overdose compared to rest of Canada

Photograph By @KAYLAXANDERSON
VIDEO: Lynx grabs lunch in Kamloops

A lynx surprises a group of ducks and picks one off for lunch

Two women were arrested in Nanaimo for refusing to wear masks and causing disturbance on a BC Ferries vessel. (File photo)
B.C. ferry passengers arrested and fined for disturbance, refusing to wear masks

Police said woman threatened their pensions in Feb. 21 incident aboard Nanaimo-bound boat

When his owner had knee surgery, Kevin, 2, was able to continue to go for walks thanks to volunteers from Elder Dog Canada. (Contributed photo)
B.C. woman has nothing but praise for Elder Dog Canada

National organization has a fleet of volunteer walkers ready, but needs more clients to serve

Most Read