Confidently Invest in Winnipeg Properties with Lexman
Local Winnipeg Property Investments
Lexman Enterprises is a real estate investment, management, and renovation company that was established in 2009 that specializes in Winnipeg property investments.
We own, manage, and rent commercial and residential properties from single family homes to multiple units such as, duplexes, townhouses, apartments and commercial properties.
Our focus has been on acquiring Winnipeg properties at a lower cost in need of rehabilitation to increase value and rental desirability. By increasing the value of our properties through renovations and structural repairs we are able to refinance and receive the initial investment back, thus repaying investors at a significant interest rate. Year after year we have focused on sound investment properties and developed strong relationships with investors, property owners, and tenants.
When acquiring properties or accepting new investors and properties to manage, we complete a comprehensive due diligence, in depth property investigation and property analysis for our clients whether it is a single dwelling, commercial property or an apartment complex.
Tenants have enjoyed long term relationships with Lexman Enterprises due to the importance that we place on recognizing the individuality of the families, individuals and companies that live and work in our managed properties. Strong relationships have been critical to Lexman’s success.
Our Local Investment Mission
"To add value to the lives of others"
Investors
Offering some of the highest returns available in the current market along with a better investing experience.
Economy
Providing our employees, contractors, and vendors with sustainable growth and employment.
Communities
Creating beautiful and functional properties that make safe and vibrant neighbourhoods.
Clients
Offering creative solutions to real estate-related problems through our purchases, as well as by creating luxurious properties suitable for inherent or sale.
Our Business Model
All projects must meet the following criteria (Note that ARV stands for ‘After Repair Value’, which is what the property is considered to be worth once all renovations are complete).
- 50-60% of ARV (+/-10%) for the purchase price
- 25% of ARV (+/-10%) for the renovation costs
- 10% of ARV (+/-5%) for the transactional, holding, and operational costs
- +15%of ARV (+/-10%) for the profit that is dispersed as a sale or held as long-term equity
- =100% ARV is the final value of the property which can then be sold or refinanced
What We Offer
Lexman Enterprises, as the “working partner”, brings to this partnership our contacts, knowledge and experience in the Winnipeg real estate market. As your working partner, we will be responsible for:
- Finding and securing profitable projects that fit within our business model
- Raising capital to purchase, renovate, and either sell or hold and rent the property long-term
- Acquiring, pre-qualifying, and managing quality contractors and vendors to tender bids and provide the necessary materials in order to renovate the properties
- Implementing renovation designs that maximize value
- Managing all financial aspects, such as accounting and bookkeeping, to ensure fiduciary accountability and transparency to all investors
- Managing the marketing and selling or renting of each property
- Managing all legal aspects of the property such as facilitating the purchase and sale, as well as any legal-related concerns that might arise in between
What We Need
You, as the “money partner”, bring to this partnership the finances required to purchase, hold and renovate these properties. As our partner, you must meet the following criteria.
Acknowledge and Accept
Acknowledgement and acceptance of our company’s mission statement.
Connection
Be either a friend or family member of Manny and Lexi or be an accredited investor.
How Is My Property Investment Secured?
With our company, your investment is secured in several ways.
- Written contract between you and our company–this secures your investment from both a legal and financial standpoint and outlines the terms of our agreement. With this agreement, you have the ability to register a lien/caveat on our properties, equipment, and cash at any time. Doing so can help to ensure that you are paid back as soon as possible upon the sale of these properties. This is the quickest, cheapest, and easiest way to secure your investment and is how most of our investors secure their investments.
- Mortgage instructions–Another option to protect your investment is to have your lawyer draft mortgage instructions for your investment. By drafting mortgage instructions, you are registered on the title of the property and are paid either first, second, or third upon sale; depending on what position you’re in. Another benefit of mortgage instructions are that, in the event that our company does not fulfill our financial obligations to you, mortgage instructions give you the power to foreclose our properties to ensure the property is sold and your investment is returned. This is the most expensive option as it requires lawyers to draft mortgage instructions ($400-$800); however, it is considered to provide the highest level of security.
- Property insurance–in the event of a fire, flood, theft, or vandalism your investment is secured by property insurance which is secured on possession day and is held current throughout
- Contractor insurance –Lexman Enterprises Inc. has a Commercial General Liability (CGL) insurance policy that covers our operations while acting as a General Contractor for our renovation projects. This policy covers up to $5 million for any: (i)person harmed while inside or on the property (ii) person working on our properties(iii) third party sustaining property damages (iv)legal defense costs in the event that we are sued by a contractor, the City of Winnipeg, or other members of the public.
- Personal insurance –In the event of Manny’s death or critical injury resulting in loss of mental functions, his wife, employees, and real estate team have explicit instructions to finish renovating all existing properties, sell them, and return all investor capital. In the unlikely event that monies are still owed to investors after all properties are sold, these outstanding monies will be returned to investors from part of Manny’s personal life insurance policy ($1 million of which is allocated to Lexman Enterprises Inc. as the beneficiary).
- Tangible asset–Real estate does not vanish into thin air such as with stocks and mutual funds. Therefore, there will always be a physical asset that can be renovated, rented, or sold to not only recoup the investment but also to help generate profit.
How Can I Invest in Local Winnipeg Properties?
Take advantage of investing in Winnipeg properties. Winnipeg is a growing and vibrant city with many beautiful neighbourhoods.
To invest, you will essentially act as a bank for our company in that you loan us monies to buy, renovate, and either sell or hold properties as long-term rentals.
We will pay you an annual interest rate of 10%. As an example, say $50,000 was invested for 5 months. The interest earned for the entire year is $50,000 x 10% = $5,000. That amount, divided by 12 months, means you make $416.67/month. So, for a 5-month investment you’ve made $2,083.33($416.67 x 5 months) in interest!
There is no minimum buy-in to invest. You can invest for any length of time. You can choose to either start receiving monthly interest-only payments immediately or you may re-invest the earnings, at which point the interest would compound on a monthly basis.
You can stop investing at any time and for any reason. If you’ve invested a relatively smaller amount, it would likely only take a few days or few weeks to get your investment back. However, if you’ve invested a relatively larg amount, it may take up to 3-6 months to have your investment returned in full.
Sample Investment Property in Winnipeg
Below you’ll find a sample of our investment property that we have transformed.
Browse our “diamond in the rough” and see how we have and can make property investment in Winnipeg easy and profitable for you.
Allenby Crescent
We took this property from a tired duplex to a beautiful family home. A lofty open concept floorplan and a gorgeous large basement were all part of this full refurbishment.
Key to the design was the use of light. We wanted to create spaces that felt connected and bright. We wanted to maximize the proportions so we broke down walls to take advantage of natural light flooding in from the large windows.
Light colours and added ascent lighting were key to the basement as we didn’t want to feel subterranean or dark.
- Property Type: Duplex
- Bedrooms: 3
- Bathroom: 2
- Floor Space 800 ft2
Langevin Street
This special project took an old house and transformed it into a beautiful family home by our team. A cozy floor plan and a redesigned open basement complete this complete renovation.
In re-thinking this building, maximizing space was a key component. Our goal was to create spaces that flow into each other giving a feeling of connectivity and spaciousness. Whenever possible, we brightened each room to make this cozy living space welcoming and functional.
A light color scheme and additional ascent lighting were used to avoid the feeling dark and dinginess.
- Property Type: House
- Bedrooms: 1
- Bathroom: 1
- Floor Space 750 ft2
Property Investment FAQ
Is real estate investment risky?
We feel that real estate is less risky than the stock market for example, notably when you partner with someone who has experience. We feel we’ve formulated a system that eliminates a lot of the risk. The value of real estate can only go up, especially when, in our case, we buy properties in need of repair and rehabilitate them to provide safe, clean, affordable housing for quality tenants.
What happens if a property is not appraised as high as you thought?
We have a contingency fund, so our investors always get paid with interest. Real estate markets and property valuations can fluctuate from time to time, so if a property does not appraise to the ARV (After repair value) we estimated, then we will pay the investor back from our own pockets. We call it leaving cash in the property after the refinance is complete.
Is there a minimum amount required to invest?
No. We will work with investors that have any comfort level.
Is my money guaranteed?
Yes, along with a signed contract, our investors have priority to be repaid in full along with the agreed upon interest first.
How long does a project usually take?
Depends on the size of the project. A single-family home or duplex will take about 3 months where a multi-plex/apartment of 4 units or more will take about 6 months.
I tried real estate before and I didn’t have the time and desire to deal with tenants and contractors when things went wrong.
When you invest with us, we eliminate all of the headaches of dealing with bad tenants, unpaid rents, repairs, and renovations for you.
Do I own the property too?
No. As your investment and/or interest is paid back to you when the property is refinanced or sold, you do not own a stake in the property, hence you do not share in any of the headaches of owning and operating said property.
Are you real estate agents, do I have to pay you a commission?
No, we are not real estate agents, but we do work with a number of agents to acquire properties. We have a realtor on our team which helps in the negotiation, structure, and analysis of our deals. We do not take a commission from our investors on the purchase or sale of properties.