Tuesday, February 22, 2011
Interest Rates and Prices
We're most conscious of the price of a home and secondly of the rate at which we borrow money to pay for it. The jump in rates in Canada certainly took home ownership just a little farther from those depending on the historical low rates we'd been seeing. If you're price aware but interest rate blind it can cost you... a lot. Check out this interesting chart and breakdown of costs at The KCM Blog although it's for the US market simple math knows no borders.
Friday, February 18, 2011
The Deal
Ever wonder what 'The Deal' is? Everybody is always talking about getting a good deal. Sure, we use it in speech meaning, the truth. Other times (like now) we are referring to bargains, real estate or some form of financial win.
I work with 3 main Realtors in my network of 6 Real Estate Professionals. Each of the 6 has a defined specialty that they have honed for years. If I want to buy a suited bungalow in the SE, I call Tim. If I want to buy a 12-22 unit in Central, I call Val, etc..
But what you, I and everyone looking for a 'deal' need to understand is that we define a deal. And until we know what one is, set the parameters and have a check system in-place, deals will allude us.
The reason why I bring this up is that a wave of AFS (seller financed) properties have come across my desk the last couple of weeks. Three of my friends and associates have brought a total of 24 'deals' my way. Some with as little as $2K down, others requiring 20% down-payments.
Each of these properties is a solid bet and has attractive financing on it, but it is not a 'deal' for me. My core team is able to filter out what I buy based on criteria that I have given them. If a property makes it through my filters, they will present it. If it doesn't, I won't see it. I'm not worried about missing any properties because my parameters are well set. It saves me time and money to have my filter set so high, this way I can focus 100% on the ones that make it through because there is a greater chance that they will work.
With the 24 properties that came my way none worked for me, but they may work for you or your friend - but you'll never know unless you have a system in place to screen them. This is the same for buying a car, selecting a restaurant or taking a trip abroad. It is a matter of honing your unique system; you already have one in place. It is the same system that you mentally check off when you buy your groceries or dress your kids for school.
What got me thinking about all this was the frantic reply we got when we forwarded these properties on to some new investors we know who are just starting to build their portfolio. Rebecca replied right back asking us how little it was to get in, if she needed to qualify for the mortgages, how long she had to come up with the money and similar questions. Now, there is nothing wrong with any of these queries as they are all relevant - but they are not the first ones she needs to ask.
Rebecca was eager to get into a low down deal and was most concerned about catching it, then figuring out how to skin it. Danielle walked her through a system that first identified Rebecca's goals, both short and long-term, and asked the question 'Will this property get you closer or further away from your end goal?' That can be a hard question to answer if you don't have the end goal in mind.
With Danielle's help, Rebecca was able to organize her criteria and make a checklist that allows her to establish what a 'good deal' is for her. She focuses on the numbers and pays careful attention to what is in-front of her today and where the action of buying or not buying, will take her tomorrow.
I know that Rebecca got a lot out of this exercise, but so did we. It forced us to go back to the basics of what we look for in a property and why. The properties that have caused me the most grief are the ones that I bought when I deviated from my plan and acted in haste, chasing that investment down so it wouldn't get away. But, you know what? It had to be done because that was priceless education. I hope sharing this insight can save Rebecca a few dollars of that priceless education every investor pays.
I work with 3 main Realtors in my network of 6 Real Estate Professionals. Each of the 6 has a defined specialty that they have honed for years. If I want to buy a suited bungalow in the SE, I call Tim. If I want to buy a 12-22 unit in Central, I call Val, etc..
But what you, I and everyone looking for a 'deal' need to understand is that we define a deal. And until we know what one is, set the parameters and have a check system in-place, deals will allude us.
The reason why I bring this up is that a wave of AFS (seller financed) properties have come across my desk the last couple of weeks. Three of my friends and associates have brought a total of 24 'deals' my way. Some with as little as $2K down, others requiring 20% down-payments.
Each of these properties is a solid bet and has attractive financing on it, but it is not a 'deal' for me. My core team is able to filter out what I buy based on criteria that I have given them. If a property makes it through my filters, they will present it. If it doesn't, I won't see it. I'm not worried about missing any properties because my parameters are well set. It saves me time and money to have my filter set so high, this way I can focus 100% on the ones that make it through because there is a greater chance that they will work.
With the 24 properties that came my way none worked for me, but they may work for you or your friend - but you'll never know unless you have a system in place to screen them. This is the same for buying a car, selecting a restaurant or taking a trip abroad. It is a matter of honing your unique system; you already have one in place. It is the same system that you mentally check off when you buy your groceries or dress your kids for school.
What got me thinking about all this was the frantic reply we got when we forwarded these properties on to some new investors we know who are just starting to build their portfolio. Rebecca replied right back asking us how little it was to get in, if she needed to qualify for the mortgages, how long she had to come up with the money and similar questions. Now, there is nothing wrong with any of these queries as they are all relevant - but they are not the first ones she needs to ask.
Rebecca was eager to get into a low down deal and was most concerned about catching it, then figuring out how to skin it. Danielle walked her through a system that first identified Rebecca's goals, both short and long-term, and asked the question 'Will this property get you closer or further away from your end goal?' That can be a hard question to answer if you don't have the end goal in mind.
With Danielle's help, Rebecca was able to organize her criteria and make a checklist that allows her to establish what a 'good deal' is for her. She focuses on the numbers and pays careful attention to what is in-front of her today and where the action of buying or not buying, will take her tomorrow.
I know that Rebecca got a lot out of this exercise, but so did we. It forced us to go back to the basics of what we look for in a property and why. The properties that have caused me the most grief are the ones that I bought when I deviated from my plan and acted in haste, chasing that investment down so it wouldn't get away. But, you know what? It had to be done because that was priceless education. I hope sharing this insight can save Rebecca a few dollars of that priceless education every investor pays.
Wednesday, February 16, 2011
Edmonton City Center Airport design proposals
I'm so excited to see the proposals for the Edmonton City Center Airport site. All the proposals have common themes of history, green factor, lifestyle and designs worthy of an major international center. Submissions range from as far as Stockholm to Kansas and Rotterdam to Vancouver.I personally love the proposal by Perkins + Wil (conceptual drawing to the left) out of Vancouver. The gardens in an urban center remind me of Japan. I'm also very interested in the extension of the river valley to the city. All proposals include a major water feature/green space which is beautiful. I'm especially happy we have a four plex near here which will surely benefit from the changes to come!
View proposals and videos here
Tuesday, February 15, 2011
Test Drive A REIN Workshop!
Attend a REIN™ Workshop as a VIP Guest... and Get a Rare "Inside Look" at the Longest-Running and Most Successful Real Estate Success Program in Canada
Whenever someone asks me why our members are so successful I tell them it boils down to one very simple thing:
The ability to take clear, decisive action at exactly the right time
That's why everything we do at REIN™ is about supercharging our members with the information, research, and strategies they need to ACT FAST when opportunities arise. And the results speak for themselves.
Since 1992, our members have transacted a staggering $3.0+ Billion in real estate. Yes, you read that right – Billion.
That means we've created more real estate millionaires than any other Canadian organization I'm aware of. Don R. Campbell President Real Estate Investment Network
Sunday, February 13, 2011
Serious Value - Cash Cow 6 Unit Property - Excellent Return
I very rarely send out properties to my potential partners without knowing their exact criteria and having a target property profile in place.
However... An exceptionally well performing property is just becoming available. A property that in my mind will be an invaluable asset to your portfolio.
Without any hype or baloney you can enter into this profitable 6 unit building if you move quickly. The contract that I have on it ends 2/18/11 and then it will be listed publicly.
Tap into your equity, use your LOC or cash.
This is a 100% Turn-Key investment.
Property Details:
- 1971 Built 6 suiter.
- 6 kitchens, 6 bathrooms, 6 private entrances, 4 laundries en-suite, 2 shared (communal) laundry areas
- Shows a 10/10
- Recent upgrades (roof and interior)
- Good area in Central North East Edmonton neighborhood across from greenbelt. 3 minutes from the Yellowhead highway
- Fully tenanted
- $25K UNDER MARKET VALUE
5 Year Estimated Profits Based on 3% Appreciation:
- Your approximate 5 year pre-tax return is $94,554.00
- 77% ROI on Your Money: 15% Per Annum
- Monthly net cashflow is $1294.00
(Profits are calculated AFTER your initial capital has been returned)
Requirements:
- Partner must be able to qualify for $400K mortgage (this can be arranged)
- $122.3K Initial investment (includes downpayment, reserve fund, legal and repair)
- Approximate 5 year term
Actions Required:
- Call 1-888-780-5940 to speak directly with Todd regarding JVP structure to proceed
- Email info@glennsimoninc.com with your contact details and best time to call
- Full detailed pro-forma with pictures will be supplied
If you have a friend or colleague that you think can benefit from this investment, I welcome your personal introductions.
Thank you,
Todd Millar-
Saturday, February 12, 2011
Evictions and The Landlord
I had the pleasure of being "Scared Straight" at Kim Kahts owner of Associated Eviction Service's seminar yesterday. Kim is so knowledgeable - she's seen every scenario at every stage of the eviction process.
Sadly all relationships with tenants don't end ideally- some don't even start ideally!
My biggest takeaways from the seminar:
1. Follow your protocol - you have rules for a reason
2. Follow the law- document, document, document every interaction
3. Follow your actions to the end - don't let things peter out your inaction can hurt you in mediation
REIN teaches this and the seminar enforced it yesterday. Basically if you stick by your protocol it's a lot harder to get into unfavorable positions. Tenants understand "I just gotta follow the rules!"
Thanks Kim!
Sadly all relationships with tenants don't end ideally- some don't even start ideally!
My biggest takeaways from the seminar:
1. Follow your protocol - you have rules for a reason
2. Follow the law- document, document, document every interaction
3. Follow your actions to the end - don't let things peter out your inaction can hurt you in mediation
REIN teaches this and the seminar enforced it yesterday. Basically if you stick by your protocol it's a lot harder to get into unfavorable positions. Tenants understand "I just gotta follow the rules!"
Thanks Kim!
Thursday, February 10, 2011
A Different Oilsands
I saw the CENOVUS new ad campaign today - A different oilsands. It shows an aerial view Foster Creek their largest oilsands project - surrounded by beautiful forest. This company is dedicated to a greener, cleaner oilsands.
Check out their videos here
Monday, February 07, 2011
A Monster of a Weekend
The weather was beautiful this weekend. We got a lot of walks around our place and went to the pool for a quick swimming lesson.
The highlight for Ronan was Advanced Auto Parts Monster Jam. He's been into Monster Trucks for a few weeks and when I saw they were coming we grabbed tickets. It's a lot of fun for kids. We were thrilled by the motor-cross riders. They're fearless and the danger level intense.
We were given our first taste of the Edmonton-Calgary rivalry with some Calgary quad riders taking sling shots at Edmontonians.
"There are about 10,000 people here so that's about 1 empty trailer park." Very hammy but the kids loved it when Edmonton quad riders won the quad race.
Honestly no one seemed to care about the Edmonton- Calgary rivalry so I googled it - is it still alive? It started here but over time it has comes down to weather...
I love the person who wrote Millwoods is a dangerous neighbourhood! Been there lately? Yeah the desire for a gorgeous home might "rob" your wallet. Everywhere has dangerous areas.
Thursday, February 03, 2011
Get Money in Your Pockets - Great Cashflowing 4 Plex
West Central, Edmonton: Cashflowing Four-Plex In Queen Mary Park
Turbo charge your portfolio. Upgraded character 4-plex with separate entrances. There are two 3 bedroom upper suites with 1200 sqft each and private upper entry, coved ceilings and newer carpet. The two lower 1 bedroom suites have approximately 800 sqft.+ each private rear entry through landscaped, fenced yard. Tenants love the location with access to UOA, Grant MacEwan, hospital and transit. There have been many recent upgrades including new hot water tank and roof. There is also an oversized double detached garage generating extra revenue. These pictures show the detail and care that went into building this home.
Comes complete with great tenants making this a totally turn-key property for you. Convenient West Central area with easy access to LRT, Downtown and Yellow Head Highway. Excellent neighborhood that demands high resale value and rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's mature core.
Produces $769 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.
Poised for massive growth. These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!
Purchase price: $565K Total Investment: $127K. Your Estimated 5 Year Profit $84K. Your pre-tax Total ROI is 66% or 13% per year + $769 Cash Flow in Your Pocket Every Month
“Get into action and realize secure, long-term profits” Already producing a great RETURN.
Visit for the full FEATURE sheet and call 1-888-780-5940 to get started.
-Please remember: All investments carry RISK. Be sure to seek your own independent legal advice-
Turbo charge your portfolio. Upgraded character 4-plex with separate entrances. There are two 3 bedroom upper suites with 1200 sqft each and private upper entry, coved ceilings and newer carpet. The two lower 1 bedroom suites have approximately 800 sqft.+ each private rear entry through landscaped, fenced yard. Tenants love the location with access to UOA, Grant MacEwan, hospital and transit. There have been many recent upgrades including new hot water tank and roof. There is also an oversized double detached garage generating extra revenue. These pictures show the detail and care that went into building this home.
Comes complete with great tenants making this a totally turn-key property for you. Convenient West Central area with easy access to LRT, Downtown and Yellow Head Highway. Excellent neighborhood that demands high resale value and rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's mature core.
Produces $769 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.
Poised for massive growth. These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!
Purchase price: $565K Total Investment: $127K. Your Estimated 5 Year Profit $84K. Your pre-tax Total ROI is 66% or 13% per year + $769 Cash Flow in Your Pocket Every Month
“Get into action and realize secure, long-term profits” Already producing a great RETURN.
Visit for the full FEATURE sheet and call 1-888-780-5940 to get started.
-Please remember: All investments carry RISK. Be sure to seek your own independent legal advice-
Wednesday, February 02, 2011
Sayonara, Mr. Stelmach
To everyone's surprise Premier Ed Stelmach announced that he will be stepping down and leaving politics completely this year. Whether you think Mr. Stelmach's departure was premature or long overdue, the bigger debate that lies ahead is finding a capable replacement. Frankly I don't see any candidates emerging that could confidently coax my vote, yet.
But alas, it is still early as he only made his statement on the 26th. There is still time for a fresh, new candidate to step forward and bring forth new ideas. What Stelmach's sudden departure will initially do is put a chill in the air when it comes to doing business in Alberta and the energy sector, as uncertainty often does.
In my opinion, if the political rumours are to be believed, a leader who elects to depart before completing his term is admitting weakness and inability in controlling his party as well as governing his province. It is ignoble to bow out, to cop out, due to a lack of competence. It absolutely must be an incredibly difficult job to do, but one in which the challenges should have been weighed prior to enlisting for. At the end of the day, pulling out early without a succession plan in place ultimately shows a level of ignorance and apathy over what is best for Alberta. Of course without ever being in Ed Stelmach's skin I can't truly say for certain.
What I'd like so see in the new Premier is someone with the confidence and ability to lead, the business acumen to promote, develop and guide the Oil Sands to years of success and the financial savvy to build up Alberta's economic diversity while maintaining and striving for a high standard of living.
I am optimistic for what this change will bring. I think that Premier Stelmach's heart may have been in the right place. He has made great contributions. Moving forward we must choose a leader with heart, soul, brawn and brains to get us to the next level.
What are your thoughts? There are some polarized opinions and funny insights - like here, here and here. This Calgary Herald Gallery is a good example of the range of reactions.
I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth. Your success continues TODAY, let me help you build upon it.
"Nobody can go back and start a new beginning, but anyone can start today and make a new ending." -Maria Robinson Warm
Regards,
Todd and Danielle Millar
But alas, it is still early as he only made his statement on the 26th. There is still time for a fresh, new candidate to step forward and bring forth new ideas. What Stelmach's sudden departure will initially do is put a chill in the air when it comes to doing business in Alberta and the energy sector, as uncertainty often does.
In my opinion, if the political rumours are to be believed, a leader who elects to depart before completing his term is admitting weakness and inability in controlling his party as well as governing his province. It is ignoble to bow out, to cop out, due to a lack of competence. It absolutely must be an incredibly difficult job to do, but one in which the challenges should have been weighed prior to enlisting for. At the end of the day, pulling out early without a succession plan in place ultimately shows a level of ignorance and apathy over what is best for Alberta. Of course without ever being in Ed Stelmach's skin I can't truly say for certain.
What I'd like so see in the new Premier is someone with the confidence and ability to lead, the business acumen to promote, develop and guide the Oil Sands to years of success and the financial savvy to build up Alberta's economic diversity while maintaining and striving for a high standard of living.
I am optimistic for what this change will bring. I think that Premier Stelmach's heart may have been in the right place. He has made great contributions. Moving forward we must choose a leader with heart, soul, brawn and brains to get us to the next level.
What are your thoughts? There are some polarized opinions and funny insights - like here, here and here. This Calgary Herald Gallery is a good example of the range of reactions.
I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth. Your success continues TODAY, let me help you build upon it.
"Nobody can go back and start a new beginning, but anyone can start today and make a new ending." -Maria Robinson Warm
Regards,
Todd and Danielle Millar
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