Why is Inovo Design Build offering 50 per cent profit share? Why doesn’t Inovo finance their projects like all other developers?
A: Inovo is a profit and cause driven enterprise. It seeks to contribute to the urban landscape through purposeful design that caters to Canadians’ lifestyle and simultaneously commits to issues of social and financial parity.
Who can invest in home renovation?
A: Individuals and groups of friends and family who are approved for a mortgage can invest in home renovation.
Who is the owner of the house/property?
A: The investor(s) are the proprietors of the home. Inovo will require a guarantee for services rendered as defined in the service agreement.
What is the service agreement?
A: The agreement defines the obligations and privileges of the investors and Inovo in the investment. The agreement is included in the investors’ package and will be released to investors who have been pre approved. Accredited investors can access more information here.
I want to invest with my friends and family. What steps are involved?
A: A pre approved mortgage with Inovo’s financial institution is the first step. Approved clients will be presented with investment property within their budget. (See the investment ranges here.)
Do the investors get to choose the design and finishes of the renovation/build?
A: No. Inovo is an integrated design build service that specializes in home renovation. This expertise guarantees reduced construction costs and diminished timelines. Design, construction and subcontracting will be executed by Inovo Design Build.
What is cost plus pricing?
A: Cost plus pricing is a cost-based method for setting the prices of materials and services. With this approach, you add the direct material cost, direct labour cost, and overhead costs for the renovation. “Plus” refers to the agreed profit of the service provider. In this arrangement the investors mortgage the home and the direct cost of the renovation and agree to a 50 per cent profit share with Inovo Design Build.
What is the length of the investment?
A: The length of the investment will vary with the size of the project. Typically investment timelines for a home renovation will vary from 12-18 months, which spans the date of acquisition to the expected date of sale.
What happens if the house isn’t sold in the expected time frame? What risks are involved?
A: The contingency plan is determined in the service agreement, however, please consider all the risks involved before you invest in real estate.
How is real estate investment taxed?
A: We cannot offer legal or tax advice. We recommend you seek advice from your accountant or financial advisor regarding capital gains tax.
What is social innovation?
A: Social innovation is a novel solution to a social problem that is more effective or sustainable than present solutions and for which the value created accrues primarily for the benefit of society as a whole rather than private individuals.