Your next building shouldn't cost you the last one.
Silverbrick provides most of the down payment. You find the building, you operate it and you keep most of the ownership. At refinancing, the fund's capital is repaid. You haven't sold a thing.
You're not short on opportunities. You're short on capital.
With your own funds
Your down payment sits in the building until refinancing. As long as it's there: no next purchase, no team, no bigger building.
In a traditional partnership
The terms work against you and the split isn't fair. Whoever brings the project and manages it should receive more than the others: that's what makes fast growth possible.
In both cases, your capital is illiquid: to get it back, you have to sell the project or wait for the term to mature. With Silverbrick, most of your capital stays available.
What you gain
Capital, on better terms
The fund provides most of the down payment. You put in the rest, out of your own pocket.
Most of the ownership
The fund's stake is set project by project. The rest is yours: 65% in the example below.
An exit without a sale
The intended exit is refinancing, without selling the building. You keep your stake, and Silverbrick keeps its own.
Your management, paid
Management fees on the building's gross revenue, for as long as you manage it.
Operations stay yours
Tenants, residential leases, routine maintenance, suppliers, TAL files: you decide.
The right financing
CMHC standard, MLI Select, conventional, private: chosen to fit the building, with the best mortgage brokers.
Same building, two structures
Sixteen units on Montréal's North Shore, $505,000 of capital at purchase.
Less in absolute value on this building. Nearly double the value per dollar invested, and the capital for a single building can finance close to three.
Simulation based on a real building owned by the founder, held in a traditional partnership. Refinancing at the end of the term, using the conservative parameters of the intended financing. The fund's stake, 35% here, is set project by project. If the building is worth less than expected, the fund is paid first and your cash at refinancing may be nil. No result is guaranteed.
Your equity, freed up for the next one
Once the building is refinanced and stabilized, your equity doesn't have to stay locked in. If you need it for a next project, the fund can free up part of it, on favourable terms.
The terms, plain and simple
A share of the down payment, out of your own pocket. The amount varies by project; the principle doesn't.
At refinancing or sale, the fund recovers its capital and its priority return before any split. Your capital comes next, then the balance according to ownership. If the project returns less than expected, the fund first receives whatever is available.
After refinancing, the fund keeps its stake in the building. It decides on financing, refinancing, sale, the holding period, distributions and off-plan spending. No distribution is mandatory during the holding period. Day-to-day operations stay in your hands, and our approval timelines are written into the agreement.
Monthly and quarterly reports, produced in the fund's accounting and property-management tools.
A structuring fee at purchase and a fund management fee, set in writing before closing.
Each party's rights, non-competition, events of default, exit: everything is set out in the shareholders' agreement, before the first dollar.
The projects we finance
Multi-residential buildings of 12 to 100 units in Québec, starting with Greater Montréal. Repositioning, targeted development, recent buildings. A two- to five-year horizon. A first building is not ruled out.
Who is behind Silverbrick
Nick Slobodinuk, founder. Eighteen years structuring real estate transactions, more than $250M in transaction volume as a broker, and an active multi-residential investor. He lived this capital shortage as an operator before building the fund. Silverbrick operates no buildings: we finance operators, without competing with them.
Got a building in sight? Let's talk.
Describe the building in a few lines: area, number of units, where you're at. Nick replies personally.