Profile of a Seasoned Real Estate Investor

Richard Crenian is President of Redev Corporation Ltd. His accomplishments are many and his failures were few.

He believes that you cannot be a good lifeguard if you have not seen and saved a drowning and he applies that to good real estate investing.

In 1979, Richard Crenian invested in a to-be built condo project on the island of Oahu, with a Calgary developer. The developer sold a dream, a dream to build a 27 story project in Makaha, an area outside Honolulu. With the setting of Hawaii who could lose?

Except the Town of Makaha only allowed a three story building, due to a height restriction, to be built on the site, and that its water rights had not been provided to the site. No water meant never any showers, flushing toilets or washing machines. So much so for a fledgling investor to be sure.

Crenian then understood what it meant not to do good due diligence.

Lesson 101, always ask questions, and never think the other guy knows what he is doing!

He also understood that the man who puts his arm around you to tell you that you are a good guy, may have his other hand in your pocket reaching for your wallet.

In 1980, at the start of the recession and high interest rates, and with the aid of others he started building and selling rental properties mostly duplexes, in the prairies. His first mid rise construction project was a 44 unit rental condominium, that he learned what it meant to have a good and accurate budget. He also learned how to deal with sub-trades and general contractors and learned to distinguish the wheat from the chaff!

One of his dearest friends, Darwin Forer who now runs Crenian’s operations in Asia, helped him with his start too!

When Crenian needed help with his marketing, administration and management, he turned to his old friend and super mentor Howard Manley. Their partnership has stemmed for more than thirty years.

By the mid 80s, Crenian and Manley were building all over Western Canada, and had built some 3500 units. It was then that they had decided to enter the largest market in Ontario and together they built and developed a further 7500 units.

During that time, further friendships flourished including a friendship with John Williams (now deceased) and together, Crenian et al built numerous strip shopping centres in Saskatchewan, Canada, and Winnipeg, Canada. Manley wanted to retire and wanted to golf more. His back was bad from all the travelling and he wanted to do some work, but in golf. Crenian and Manley parted ways and Manley went off to Palm Springs, California.

The recession of 1990 hit hard, and many condo projects were put into jeopardy, including some of Crenian’s as well. Those were difficult years though till 1996, but Crenian trudged on, hanging onto whatever gains he could manage. His pride and drive still in tact, in spite on the good spanking he had received from a negative, no growth, no financing economy, Crenian went on to build more condos and townhouses in and about Toronto.

In spite of a recovering economy, Crenian was amazed to the discovery that the sub trades and General Contractors with zero risk and no recourse were controlling the Developers by a famous word called extras. An extra is a just that, an extra that just won’t go away.

Here is a list of extras.

• Architect made a mistake (Architects in Ontario have a right of omission without recourse)
• Engineers made a mistake (similar to an architect)
• Site Adjustments
• Site Conditions (needs more fill, needs more electric, needs more… who knows?
• Non bonded sub contractor cannot fulfill his contract
• Schedule, sub contractor cannot deliver his product on time.

So what do you do when a General Contractor tells you he is over budget by 30 percent and needs you to pay? Answer- you fight like heck! How do you fight with someone who is not afraid to lose (the contractor?) when he has nothing to lose? (Extras, are always at the risk of a sub trade not the general contractor, and as always at the expense and the back of a developer.) You force a project into receivership and have the receiver deal with the general contractor. This is a risky move, but sometimes it is the only move one has, to recover your initial investment.

After developing and building condos for 21 years, Crenian decided to follow Manley and pack it in. It was no more fun to fight with contractors day and night, no more fun to go to the office and no more fun to risk money to lose. He looked for areas where he could retire and not have to deal with contractors and not have to micromanage every event, every detail and every cent.

Crenian forayed full time into commercial real estate ownership and management, and his timed it at the time when the market was to taking off. His long term relationships with financiers, financing companies and banks paid off. His long term relationship and his connections with Western Canada, paid off handsomely when Alberta started taking off. He remembers leaving Toronto to go to Alberta on his trips every two weeks, having the Toronto Landlords laugh at him, as to why he was going to (oh where is that place again?), Alberta. Why go someplace so far they said? Crenian shrugged his shoulders, smiled and carried on.

Crenian sees himself as a Turtle Investor, never rushing into a deal and a new deal will come along every fifteen minutes (like a bus!). He also likens himself as a lifeguard, having seen some drownings, and not drowning himself, he knows what to and what not to do. If some words would describe Crenian it would be an astute real estate investor and a survivor!

A developer does it for Guts and Glory. A seasoned investor couldn’t care less about the glory, nor does he want to play with his retirement funds.

In 2001, Crenian and Manley (just like Gretzy and Juri Kurri in hockey, did but only better!) reconnected to invest in long term commercial real estate projects. They are glad they did!

Richard Crenian appreciates life, loves his family, friends and faith. His favorite thing to do is to laugh at himself! Howard enjoys the sun in Tucson, and adores his grandchildren!

Richard’s Past Projects

• The Rosedale
  A two-tower comples with mixed use retail in downtown Vancouver. Land acquired, architecture completed and sold to an investment group from the Asia Pacific.
• Birdland Estates
  A 200 unit project in Surrey, British Columbia rezoned for 250 condominium units. Plans were in place and resold to an investment group.
• Ashley Gate
  72 unit complex condominium project in Surrey, British Columbia.
• The Mackenzie
  An 80 unit project in Langley, British Columbia.
• Terraces of Tuxedo
  180 unit townhouse condominium project in Winnipeg.
• Treetop Village
  70 unit townhouse project in Winnipeg.
• Eagle Ridge and Owl Ridge
  120 unit townhouse project in Winnipeg.
• Winnipeg Towers
  200 unit midrise condominiums on the riverfront of Winnipeg.
• Osborne on the Red
  105 unit condominium conversionon the riverfront of Winnipeg.