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
February 13th., 2016
Volume 20, Issue 3
Dear Friends and Partners,
For the last few years we’ve seen a bit of a boom in RTO (Rent To Own) investments in Edmonton. There are a few ways to do them. You can bring in an investment partner and with full-disclosure they are perfectly legal. RTO, like many investment strategies, have risks and require their own set of due-diligence questions to go through.
Another investment that isn’t new, but has been popping up quite a bit is flipping and skip transfers (similar versions; wraps, sandwich leases).
Many of these strategies have been around for a long while. There are legal ways to do them and illegal ways to do them. With our market slowing considerably in Edmonton, you won’t find as many people employing this strategy; rather you will see people modifying it to entice a sale for a seller that wants rid of his property. Similar to shorting a stock.
Where you typically see flipping is in hot markets like Vancouver and Toronto. Peter Kinch clarifies what a skip-transfer is in this short video. Watch it here.
Downtown Edmonton: Oliver 9-Unit Apartment
Mechanical, roof and 6 units all upgraded. This property has a great suite mix; 6 X 2 bd and and 3 X studios, all parking stalls are energized and separately metered.
This property has a tried and true layout and is built to last. Purchase price includes reserve fund and estimated $30K in renos to make the property shine! This is a turn-key deal. Excellent access downtown and in the highly rent-able and desirable neighbourhood of Oliver. CAP rate of 6% and 5% C.O.C. return.
Comes complete with great tenants making this a totally turn-key property for you. Oliver is a mature neighbourhood that is desirable for tenants working in the downtown and attending NAIT. 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: $1.05M
Total Investment: $387K.
Your Estimated 5 Year Profit $151,968.
Your pre-tax Total ROI is 40% or 8% per year
These 9 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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Trudeau and Notely talk pipelines and slumping prices with oilpatch
By James Wood, Calgary Herald, February 4th, 2016
Justin Trudeau’s pledges of help were met with guarded optimism in the heart of the oilpatch Thursday, even as the prime minister made no concrete promises around pipeline proposals.
As Trudeau and Premier Rachel Notley hosted a round table meeting in his first visit to Calgary since becoming prime minister, he told a group of top energy executives the government wanted to hear ways Ottawa “can be a better partner in helping you through this difficult time.”
When he spoke to reporters later after touring the downtown YWCA, Trudeau said he believes the battered energy sector is open to a different approach from the federal government. FOLLOW THIS ARTICLE
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Jingle mail rears its ugly head in Alberta again
Federal government worried about Albertans making strategic defaults on their mortgages
By Tracy Johnson, CBC News, February 8th, 2016
One of the big bads from the 1980s is starting to emerge again in Alberta.
Jingle mail — the act of walking away from an underwater mortgage by mailing your keys back to the bank — is a peculiarity of the Alberta residential market and an act of desperation. However, a combination of high debt and lost jobs make it an option in a province going through a significant economic reckoning.
It's enough of a concern that the federal government is watching the Alberta market closely. Jingle mail, or strategic defaults, weaken the housing market and increase loan losses among Canada's banks. GRAB THIS STORY
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Edmonton real estate market gives reason for optimism
By Graham Hicks, Postmedia Network, February 11th, 2016
You have to forgive Realtors.
They are relentlessly optimistic.
The economy is dropping like a rock. A great time to buy!
The economy is sizzling red-hot. A great time to sell!
I was impressed with the reasonably objective research and conclusions of Edmonton Realtor (and ex-accountant) Kathy Schmidt, in her monthly The Schmidt Report.
The sky is not falling, she argues, not in Edmonton’s housing market.
It has crashed down in Fort McMurray, it’s falling in Calgary, but here, we’re just a little overcast.
Median house prices are down – about 3% — in most of Metropolitan Edmonton, a median price of about $340,000 compared to $350,000 at this time last year. 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.
“Accept the challenges so that you can feel the exhilaration of victory.” - George S. Patton
Warm Regards,
Todd and Danielle Millar
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