Saturday, February 01, 2014

Freezer Burn

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   email:

February 1st., 2014
Volume 16, Issue 1

Dear Friends and Partners,

The last two weeks have found Edmonton smack in the middle of a very warm freeze-thaw cycle. The correlation to the current RE market couldn't be more similar. The multi-family market is frozen-tight with nary a new listing and it's a challenge to 'thaw' local property owners too sell as well. Where we are beginning to see some warmer activity is with residential and suited houses. In the past 10 days there have been 4 properties that I have viewed for suited house potential, two turned out to be complete write offs due to serious structural/mechanical deficiencies. The other two properties turned out to have decent enough potential, albeit rather highly priced. So what happened? ALL of the 4 properties have sold (2 unconditional) or are pending-sale subject to conditions; two $10K+ over list price. Insights to take away from this are that when you have a specific target property and neighbourhood - act fast!

Sure there's a glut of stale properties festering on the MLS that have 90 days on market; many of which are overpriced and/or under-renovated. Add hungry buyers looking for reasonably priced homes, means new listings sell fast and for good dollar.  The current demand for property will shift and soften as more homes hit the market this spring and balance things out.  Multifamily remains tight and sellers know it. I've seen many properties the last few months and far and few between that warrant writing on. Pick quality over quantity, work your off list (non-MLS) sellers and comb your area. There are deals to be had, it just takes a little longer to strike the right balance of quality and price.

North West Edmonton: Cash-flow: Suited Bungalow Reno Property in Glengarry

Turbo charge your portfolio. This semi-suited bungalow is located in the mature area of Glengarry. It is rough, ugly and bought for good value.

This 1962 built property has a front entrance for the upper unit and a rear entry for the lower suite. Our renovation team will fix this from top to bottom.

Renos to include all flooring, kitchens, bathrooms, fixtures, paint and much more. We use our special PPI strategy to wrap the repairs into the mortgage.

The suite is to be completed up to city code. 3 BD upper, 1 BD lower, en suite laundry and detached garage. Great access to 137 AV and 82nd st right to the Yellowhead and downtown.

Purchase price is $265K + $50K renovation package for a total of $315K - CF all day long and equity of approximately $20K.

Comes complete with great tenants making this a totally turn-key property for you. Convenient north west area with easy access to transit and downtown. Glengarry is a mature area with plenty of schools, park and amenities. Highly rent-able; 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: $315K
Total Investment: $75,341K.
Your Estimated 5 Year Profit $42,432.65K.
Your pre-tax Total ROI is 56% or 11% per year

These 2 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!


The split personality of Alberta's job juggernaut

By Todd Hirsch, Special to The Globe and Mail, January 17th, 2014

It’s a well-known truism about economic indicators that one month does not a trend make. That’s encouraging news for Canada’s job market. If the loss of 46,000 jobs in December were to mark a trend, the country would be in serious trouble.
Alberta – the economic powerhouse of the country – also shed nearly 12,000 jobs last month. But trends are built over several months, and December’s loss comes on the heels of five consecutive months of gains in Alberta.  FOLLOW THIS ARTICLE


Canada's Alberta May Be The Strongest Economy in the World

By Jeb Handwerger, Wall Street Sector Selector, January 16th, 2014

Currently, there is an explosion of economic growth in Western Canada, most notably Alberta.

While the media dazzles you with the money being made in high flying overvalued social media stocks, behind the scenes China is buying up North American energy (NYSEARCA:XLE) resources and one of the beneficiaries has been Western Canada. 

Currently, there is an explosion of economic growth in Western Canada most notably Alberta.  Due to the increased demand for energy coming from Asia, Western Canada may be one of the best economies in the world right now.  Unemployed Americans and Europeans with technical skills are already finding high paying jobs.   GRAB THIS STORY


Oil industry rebuts 'trash talking' celebrity critics

By Shawn McCarthy and Richard Blackwell, Globe and Mail, January 16th, 2014

Two of Calgary’s most prominent oil executives delivered a scathing rebuttal to celebrity critics such as rock star Neil Young, as the industry attempts to win support for pipeline projects that are essential to its ambitious growth plans for the oil sands.

Cenovus Energy Inc. chief executive Brian Ferguson and TransCanada Corp. chair Russ Girling brought an aggressive message to a joint presentation at Toronto’s Canadian Club, in which they defended the country’s current approach to environmental protection and resource development.    READ MORE HERE

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.

"Winning takes talent, to repeat takes character." - John Wooden

Warm Regards,

Todd and Danielle Millar


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.

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