In today’s Saturday Spotlight, I asked Amit Parmar — Commercial Realtor, Multi-Industry Operator, Investor and CMHC Multi-Family Mortgage Broker — to share his insights as it relates to our week on liquidity, Financial Hide and Seek, and the Equity Bridge.
Amit is one of the most disciplined operators I know in real estate. Here is his take on the structural traps that quietly shape investing:
1. The False Bottom
On my first investment property, I didn’t pay myself for nearly 3 years. My priority wasn’t income. It was education and execution. I made costly mistakes with property managers, underestimated CapEx, and misjudged NOI improvements. But those mistakes shaped a more disciplined approach.
My situation is unique: my operating business funds my life, while my investments fuel long-term portfolio growth. I prioritize diversification across asset classes to mitigate risk. As a result, I view investment income not as a source of immediate cash flow, but as fuel for continued portfolio expansion.
Over time, I’ve come to understand that while reinvestment is powerful, it must be intentional — not reactive. The key is knowing when you are building value vs. simply deferring income. My objective remains clear: build a resilient, diversified portfolio that compounds over time, rather than optimizing for short-term income.
2. Asset-Rich, Cash-Poor
For over a decade, I operated as ASSET-RICH but CASH-POOR and didn’t fully recognize the imbalance. My growth was supported by conservative underwriting, a focus on forced appreciation, calculated risk-taking, diversification and, candidly, a degree of timing and luck.
Over the past 5 years, despite significant market volatility and interest rate shifts, I have remained in both growth and acquisition mode due to my adaptability.
But I’ve learned: Growth without liquidity creates constant pressure. Liquidity without growth limits long-term upside. The goal isn’t just to keep acquiring — it’s to build sustainably while maintaining control over your financial reality.
3. Surviving The Equity Bridge
I experienced this early on with a 59-unit property I renovated over 3 years using my own capital with limited understanding of structured strategies like BRRR. Rising interest rates reduced my refinance equity, and capital recovery took 5 years instead of 3. It created ongoing pressure. That experience forced me to build three structural rules:
- Capital Recovery Timeline: I only pursue deals where I can recover invested capital in 3 years (max 5 under conservative scenarios).
- Refi from Day 1: Every acquisition is underwritten with the refinance as a core strategy, not a future event.
- Staggered Cycles: By acquiring consistently, properties stabilize and equity releases on a rolling basis. Liquidity becomes predictable, not dependent on a single event.
The Equity Bridge doesn’t become less risky with experience. It becomes manageable with structure.