Buying a 30- or 50-unit building may feel out of reach for most individual investors, especially for those entering Alberta’s booming market from out of province. But here’s the secret: you don’t have to do it alone.
In Calgary and its surrounding towns, joint ventures (JVs) are quickly becoming one of the smartest ways to scale into larger, cash-flowing multi-unit properties. By pooling capital, knowledge, and resources, investors can unlock opportunities that would otherwise remain on the sidelines.
Why Joint Ventures Make Sense in Calgary
- Affordability Meets Opportunity
Calgary remains far more affordable than Toronto or Vancouver, yet it’s experiencing rapid population growth. Inner-city neighborhoods like Renfrew, Mount Pleasant, and Killarney are seeing demand from young professionals and downsizing retirees. Meanwhile, towns like Airdrie, Chestermere, and Okotoks are booming with families who need rentals. JVs allow investors to grab larger properties that meet this demand. - Capital Pooling for Bigger Deals
A 40-unit building might require millions in down payment, but two or three investors working together can easily share the financial load. This is especially helpful for newcomers who want to enter with just 5% down through CMHC MLI Select financing, a program designed for long-term, stable multi-unit housing. - Shared Risk, Shared Reward
Investing alone can be daunting. By partnering, you spread not just the financial risk but also the decision-making load. One partner may bring the funds, another the experience, and a third the local market knowledge.
An Example in Action
Imagine three investors pooling their resources for a 20-unit building in Cochrane. One lives locally and manages day-to-day operations, another brings experience from Toronto’s condo market, and the third contributes capital from Vancouver. Together, they not only secure financing but also benefit from Alberta’s landlord-friendly laws (no rent caps, flexible tenant rules) and strong demand.
The result? A profitable investment none of them could have achieved alone.
Tips for Structuring Joint Ventures
- Put It in Writing: Always create a JV agreement that outlines roles, responsibilities, and profit-sharing.
- Choose Complementary Partners: The best partnerships bring together different strengths, capital, expertise, and local presence.
- Plan for Exit Strategies: Whether selling, refinancing, or buying out, define what happens when someone wants out.
Final Thoughts
In Calgary’s thriving rental market, whether it’s a new apartment block in Airdrie or a character-filled walk-up in Renfrew, joint ventures can be the key to bigger deals, faster growth, and long-term stability.
