Edmonton Real Estate Investor: July 2013

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

July 27, 2013
Volume 15, Issue 1

Dear Friends and Partners,

I'm inspired by triple-triple.

That's a meme started by a young Edmontonian that decided to pay forward 500 double-doubles at Tim Horton's. He inspired a trend that has seen at least three other people, in three other cities across Canada follow.

I am inspired by Danielle's 1000th blog post that she made last week. I am inspired by the seemingly un-ending fruit supply that my backyard (and ravine) yield.

I am inspired by the truth in the fact that 'people move to Alberta for work; rent for approximately 2 years, 20% move back to home province, 50% continue to rent and 30% buy their own home."

It's a good place to be. Be inspiring today.

Central West Edmonton: Reno-Deal 4-Plex Cashflow Property in Inglewood

Turbo charge your portfolio. This is a larger renovation deal that will add 2 new suites to the existing two units. Upgraded 1977 built legal duplex property with front and rear entrances to suites.

Two 3BD units have been upgraded and two 2 BD suites will be added, using our PPI strategy at purchase time and wrapping renovation costs into mortgage. You'll find 2 X 3BD units upstairs with attached garages and 2 X 2BD units downstairs. Spacious upper units shine with new laminate, fixtures and paint. The lower units to get full kitchen, bathroom, vanity and top of the line flooring.

Each unit to have en-suite laundry. Each unit has its own parking space, plus upper units have attached garages. Excellent location near the developing downtown core and in the sought after, mature area of Inglewood. A short walk to Coronation Park, Telus Centre and minutes to NAIT, Royal Alec and Down Town. Fast access to bus routes and Yellowhead.

Comes complete with great tenants making this a totally turn-key property for you. Convenient west central area with easy access to transit and downtown. Inglewood is an established, sought after neighbourhood. Highly rentable; solid value and increasing rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $510K
Total Investment: $141,745K.
Your Estimated 5 Year Profit $88,303K.
Your pre-tax Total ROI is 62% or 12% per year and Cash Flow in Your Pocket Every Month

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, 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!

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The Canadian Economy's Two Great Blessings

By Alex Carrick, Reed Data, July 25th 2013

The Canadian economy has two great blessings: exceptional resource wealth and a relatively strong rate of population growth. The fact they are closely related is easy to overlook. Young immigrant workers needed to support a higher proportion of seniors are attracted by the job opportunities in raw materials and construction.
Alex Carrick, Reed Construction Data's Chief Economist Canada, shares insight into two of the the country's greatest assets. FOLLOW THIS ARTICLE

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What Debate? Canada is Ready for a Clean Energy Future

By Smith, Olewiler and Heintzman, The Globe and Mail, July 23rd 2013

Over the past year energy issues have featured heavily in political and public debate across the country. And Canadians might be forgiven for feeling confused (if they haven’t tuned out) given how polarized things have become:

Are we purveyors of “ethical oil” or “dirty oil?” Are we on track to fulfill our commitments to reduce carbon pollution and tackle climate disruption, or destined to fall short? Are we an emerging energy superpower or a laggard in the accelerating transition to a global low carbon economy?

All this conflict has only served to obscure important signals that should be guiding our leaders as they weigh how best to address Canada’s energy and climate challenges.

When Canada’s premiers met at the Council of the Federation in Halifax a year ago they kick-started the development of a Canadian energy strategy. GRAB THIS STORY

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Premiers Positive About Pipeline From Alberta to New Brunswick

By Adrian Morrow, The Globe and Mail, July 25th, 2013

The premiers promoting a west-east oil pipeline are “bullish” on its prospects after TransCanada Energy, the company behind the proposal, signalled it is moving closer to being able to build it.

The topic, however, had to be dealt with delicately at a Council of the Federation meeting in light of the disaster in Lac-Mégantic, Que., in which a train carrying crude oil derailed and blew up.

The pipeline would run from Alberta’s oil sands to refineries in Saint John, N.B., traversing six provinces. TransCanada has been working to secure commitments on oil shipments that would make the project viable, which it indicated is going well.

New Brunswick Premier David Alward was similarly optimistic, and said he has had good signs from the other provinces. READ MORE HERE

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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 EVERYDAY, let me help you build for tomorrow.

"Dreams are often most profound when they seem the most crazy." -Sigmund Freud

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start homestudy sets at a discount. Get your copy of the Canadian Success Stories book and the 2010-2014 Top Ten Investment Towns of Alberta and Ontario.

I wrote about the man who donated coffee at Tim Hortons to the next few hundred patrons. Since then it has happened three other times.

The comments on this article range from gratitude to disdain calling it a publicity stunt. Since most of the donors remain anonymous it seems a horribly ill thought out publicity plan....

A quick aside I'm sure everyone is waiting to find out of Michael Dunahee has indeed been found, after 22 years, living in Surrey. It would be such a wonderful ending to a terrible story. I keep checking google but no news yet.

A man (angel on earth) walked into Tim Horton's and paid for the next 1000 coffees - what a great gesture and that means a lot to Canadians - free double double? Nice.

I think this is a great story. I initially heard about it on the radio and I am surprised it made print amongst all the 'bad' news. Paying it forward is cool. Do it with action, money or intention.

Another neat thing I learned was that my neighbourhood has a Facebook page, that's just plain awesome. It list community events, businesses and mainly interaction and activities for our 'hood. If your neighbourhood doesn't yet do this, why not start it?

I posted my 1000th blog and only noticed after I was at 1002. It's been about 7 years of blogging - I started in 2006. I remember my first post.

I've been a lax blogger and prodigious at times over the years 2007 was my peak with 248 blogs. Then came children....

Since I've started blogging we've been in a few books, numerous magazines, become a regular contributor to real estate sites so it's certainly paid off.

We did a three part series for NuWire Investor - it's a really good read full of crucial information for new and even experienced investors.

When you start anything there are always moments when you say "Why didn't anyone tell me about that?" These articles cover THAT stuff (some of it anyways).

Take a look

Reach your real estate goals with filters that clarify your targets Jump

Devil is in the Details - The Numbers Go

Devil is in the Details - Finding the perfect tenant - Read

We took a day off on Sunday and went to the lake with our sons. Todd and Ronan went out in our 300lb (not exact weight just very heavy) canoe.

It was beautiful. Pristine lake, nice weather, not crowded and a great clean site.

This was all about 1 hour from my door. Usually we would try and tackle K-Days but none of us seem into it this year.

I'm always so happy to go to the River Valley. It's minutes from our house and amazing but was it ever nice to go a bit further and see another part of Alberta.

Every few months I got to the Edmonton Stories site. I love reading about people moving to Edmonton and what brought them here.

Recently we've seen a huge transition of tenants moving to home owners. I've had about 8 vacancies this month half of which are tenants moving into their own home.

It proves the transition that you'll hope to see in your rental property. People come to the city and rent your home, then they move and buy a home. That means that your property has two sources of income either as a rental or at sale. It's a natural transition.

Time line on rate hike is long -
The rate debate is forefront when you are considering a new mortgage or readjusting your current. For longer holds, locking into a 10 year flat rate offers excellent value right now. If you are contemplating selling, choose to ride the fickle variable rate; still low, but watch keep an eye on the bond market to anticipate increases. Read Here

Canadian banks get ready to lend -
Relaxed mortgage criteria, LOC, business loans? Maybe, maybe not. But when a group of banks is sitting on a pot of money and your credit is good and you have a solid investment property lined up - the lights are green! Read More

Labour shortage costs Alberta Billions
I'm torn on this. Ideally the province (or arguably, the country) should first draw from its own labour pool before outsourcing. If it involves more training and extending the opportunity for employment to other provinces, than that is fantastic. But, if you have a complacent work force that isn't willing to do the work available - then hiring, training and providing an opportunity for those abroad is proactive. My comment is simplistic and assumes that salaries are balanced and workload equal based upon experience. JUMP

Alberta Oil Sands Investment Real Estate News®

Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

July 13th., 2013
Volume 14, Issue 10

Dear Friends and Partners,

Danielle and I were talking about the need, want and habit of complaining. Danielle read in Gaye Hendricks' The Most Important 14 Pages You'll Ever Read In Your Life, that if you complain more than three times about anything then it is something that you are inviting into your life that you need to 'clean up'. And how true that is.

I look at my simple annoyances and am often pushed to put them off rather than 'fix' them; it could be the need to organize the cupboard to caulk the tub. If the recurring complaint is BIG, tackle it faster and 'eat that frog'.

Some things take more time to complete but when they are approached quickly, can save a lot of pain; after all that is what we (people) are trying to avoid.

South West Edmonton: Tri-Plex Cash Flow Property in Ekota
Turbo charge your portfolio. This is a renovation deal that will add a new suite to the existing two units. Upgraded 1975 built legal duplex property with front and rear entrances to suites. Two units have been upgraded and a third 2 BD suite will be added, using our PPI strategy at purchase time and wrapping renovation costs into mortgage. You'll find 2 X 3BD units and 1 X 2BD unit. Spacious upper units boat new laminate, fixtures and paint. The lower unit to get full kitchen, bathroom, vanity and top of the line flooring. Each unit has en-suite laundry. Each unit has its own parking space. Excellent location in the South West with a short walk to Millwoods Park, malls and minutes to the Anthony Henday and Whitemud highway, Grey Nuns hospital is less than 5 minutes away. Fast access to to all bus routes.

Comes complete with great tenants making this a totally turn-key property for you. Convenient south west area with easy access to transit and downtown. Ekota is an established, sought after neighbourhood in the Millwoods community. Highly rentable; solid value and increasing rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable Southend.

Purchase price: $545K
Total Investment: $126,611.47K
Your Estimated 5 Year Profit $73,877.93K
Your pre-tax Total ROI is 58% or 12% per year

These 3 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, 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!
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Alberta to Lead Canadian Economic Growth 2014

By Mario Toneguzzi, Calgary Herald, July 10th 2013

CALGARY — Alberta is expected to lead the country in economic growth next year, according to a new report released Wednesday by TD Economics.

The report said Alberta’s Real GDP growth will be 3.6 per cent in 2014 following a 2.8 per cent hike this year. Economic growth in the province in 2013 will be behind only Newfoundland & Labrador’s nation-leading 4.5 per cent increase.

“Despite the recent flooding, Alberta will be one strongest economies in Canada in 2013. Total energy sector revenue and reinvestment is expected to be higher than in 2012, when provincial GDP growth was four per cent,” said Ben Brunnen, a Calgary economic consultant and former chief economist of the Calgary Chamber of Commerce.

“Our unemployment rate is low, net interprovincial migration is high, and May residential building permits are the highest they’ve been since 2007. While the recent flooding will take some of the wind out the economic sails for southern Alberta, particularly in the retail sector, major project announcements such as the Brookfield Herald block and the Telus Sky demonstrate long-term confidence in Calgary and Alberta’s fundamentals.” FOLLOW THIS ARTICLE

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Oil Rises Near US $106 a Barrel for 3rd Weekly Increase, Gasoline Futures Soar

By The Associated Press, July 12th 2013

NEW YORK, N.Y. - The price of oil rose to near US$106 a barrel Friday, supported by continuing tensions in Egypt and a sharp drop of U.S. crude stockpiles.

Benchmark crude oil for August delivery gained $1.04 to $105.95 a barrel on the New York Mercantile Exchange.

Even with a drop of $1.60 a barrel Thursday, the price of oil rose $2.73 this week and is up nearly 10 per cent in July.

Oil has risen from around $97 on July 1, mainly for two reasons. Traders are concerned that unrest in Egypt could affect oil shipments through the Suez Canal, a key shipping lane. And U.S. supplies of oil and gasoline have dropped dramatically in the past two weeks, signalling a rise in demand in the world's largest economy.

Brent crude gained $1.08 to $108.81 on the ICE Futures exchange in London. GRAB THIS STORY

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Pay-for-use lounge takes off at Edmonton airport

By Bill Mah, Edmonton Journal, July 13th, 2013

Domestic and international travellers who face long waits at the Edmonton International Airport can now enjoy a first-class lounge experience with the opening of a new pay-for-use facility.

On Thursday, Hong Kong-based Plaza Premium Lounge officially opened a 4,520-square-foot location at the airport's domestic-international departures lounge. A sister facility, in the airport's U.S. departures terminal, opened in 2012.

The lounges are open to all paying customers, regardless of airline or travel class, and cater especially to business and conference travelers.

Plaza Premium Lounge got its start when founder Song Hoi See left his job as an investment banker to start his own business, leaving behind the luxury of first class for the rigors of economy class. READ MORE HERE

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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 EVERYDAY, let me help you build for tomorrow.

"I cannot make my days longer so I strive to make them better." -Paul Theroux

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start homestudy sets at a discount. Get your copy of the Canadian Success Stories book and the 2010-2014 Top Ten Investment Towns of Alberta and Ontario.

I was reading the Globe and Mail online today when a link on the side caught my eye. The title "Could investment in a second property go sideways?" I chuckled. If you have to ask then you shouldn't be buying a second property...

However, there are so many "Real Estate Riches" seminars that tell you how great real estate is (which it is) showing the insane returns possible (which there are) because of the leverage a mortgage allows. The allure is strong but the hours, days and years of WORK after the thrill of buying your investment is almost never covered.

I want to tell you, as a seasoned investor, that the most important thing you should think about when you buy a second property is it going sideways - and what your Plan A, B, C to X will be.

When you can handle any situation that your property throws at you, you are a real estate investor.

Bad Things that have happened in my rentals:
Floods
Mould
Death ( Natural and Unnatural)
Evictions
Destruction
No rent
Huge Renovations
Tenant Bankruptcy
Midnight Moves

Good things that have happened in my rentals:
Exponential ROI
Excellent tenants that improved the property
Insurance Funds coming through
Helping tenants become homeowners
Getting my initial investment out and still having the property
Mortgage free ownership
Cashflow every month
Repairs on or under budget
Increase in flexibility/time/freedom

It's ying and yang! No investment is all up and no down. That's just a life fact and yes - it even applies to investments.