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

The COVID-19 outbreak at the two Coastal GasLink workforce lodges has officially been declared over. (Lakes District News file photo)
COVID-19 outbreak at Coastal GasLink worksites declared over

In total, 56 cases were associated with the outbreak in the Burns Lake and Nechako LHAs

Prince Rupert Fire Rescue was dispatched to a boat fire on Jan. 21 at Fairview Marina. (Photo: supplied)
Boat fire under investigation

Prince Rupert Fire Rescue attended boat fire at Fairview Marina

Toronto-based director Michelle Latimer was recently scrutinized after years of claiming she was of Algonquin and Metis descent. (CANADIAN PRESS/Chris Young)
Haida activist calls for hefty fines, jail time against those who claim to be Indigenous

Filmmaker Tamara Bell proposing the Indigenous Identity Act – to dissuade ‘Indigenous identity theft’

Prince Rupert lawyer, Donald A. Silversides has been appointed to the BC Liberals Election Organizing Committee, announced the party on Jan 21. (Contributed photo)
Don Silversides appointed to BC Liberal election organizing committee

Prince Rupert lawyer is the current BC Liberals acting president

Brett Alexander Jones is wanted on several warrants province-wide, in connection with multiple charges. Jan. 21, 2021. Kitimat RCMP photo
Kitimat RCMP searching for man wanted on several warrants province-wide

Jones is described as a five-foot 10-inches Caucasian man, with blond hair and blue eyes.

Toronto Public Health nurse Lalaine Agarin sets up for mass vaccination clinic in Toronto, Jan. 17, 2021. B.C. is set to to begin its large-scale immunization program for the general public starting in April. THE CANADIAN PRESS/Frank Gunn
B.C.’s COVID-19 mass vaccinations expected to start in April

Clinics to immunize four million people by September

Police are searching for an alleged sex offender, Nicole Edwards, who they say has not returned to her Vancouver halfway house. (Police handout)
Police hunt for woman charged in ‘horrific’ assault who failed to return to Surrey halfway house

Call 911 immediately if you see alleged sex offender Nicole Edwards, police say

A screenshot from a local Instagram account video. The account appeared to be frequented by Mission students, and showed violent videos of students assaulting and bullying other students.
Parents, former students describe ‘culture of bullying’ in Mission school district

Nearly two dozen voices come forward speaking of abuse haunting the hallways in Mission, B.C.

Joe Biden, then the U.S. vice-president, and Prime Minister Justin Trudeau take their seats at the start of the First Ministers and National Indigenous Leaders meeting in Ottawa, Friday, Dec. 9, 2016. THE CANADIAN PRESS/Adrian Wyld
Trudeau, Biden to talk today as death of Keystone XL reverberates in Canada

President Joe Biden opposed the Keystone XL expansion as vice-president under Barack Obama

Prince Edward Island’s provincial flag flies on a flag pole in Ottawa, Friday July 3, 2020. A lozenge plant in Prince Edward Island has laid off 30 workers, citing an “almost non-existent” cold and cough season amid COVID-19 restrictions. THE CANADIAN PRESS/Adrian Wyld
‘Almost non-existent’ cold and cough season: P.E.I. lozenge plant lays off 30 workers

The apparent drop in winter colds across the country seems to have weakened demand for medicine and natural remedies

Robert Riley Saunders. (File)
Disgraced Kelowna social worker faces another class-action lawsuit

Zackary Alphonse claims he was not informed of resources available to him upon leaving government care

A specialized RCMP team is investigating a suspicious trailer, which might have connections to the illicit drug trade, found abandoned outside a Cache Creek motel. (Photo credit: <em>Journal</em> files)
Police probe U-Haul trailer linked to illicit drugs left outside Cache Creek motel

Hazardous materials found inside believed to be consistent with the production of illicit drugs

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Interprovincial travel restrictions a no-go, Horgan says after reviewing legal options

The B.C. NDP government sought legal advice as concerns of travel continue

Gem Lake Top, at Big White Ski Resort, seen at Jan. 8. (Big White Ski Resort)
Big White cancels $7.3M in lift tickets, accommodations due to COVID-19 orders

Since November, the ski resort has been forced to make several changes

Most Read