Friday, August 01, 2014

Dog Days of Summer

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:

August 1st., 2014
Volume 17, Issue 3

Dear Friends and Partners,

We’ve been having a ‘heatwave’ the past week. I say enjoy it while we’ve got it, kind of makes up for the long, cold winters. With the heat comes epic thunderstorms; prepare as best you can for them.

The economy is hot too but there are some clouds of worry; consumer debt is higher, housing prices in certain areas are higher and geo-political tension is burning like a fever.

When I write or review real estate articles I always look locally first, studying the economic drivers of the city and its growth demographics. I look at how the city and province's industries are influenced (or influencing) national growth or are affected by retraction and global impact.

It is never possible to predict exact outcomes but it is possible to plan for scenarios. Living in a province that is primarily energy driven (albeit that we are getting more and more economically diversified) its necessary to pay attention to the global ebb and flow of energy markets and its customers. The trick is not to get to caught up in the noise and to plan for the inevitable down cycles that follow the good ones.

Edmonton real estate is very affordable, rates are low, we are in an up cycle and have increasing population growth; many green lights, but you still have to look both ways before entering an intersection and always check the rear-view mirror!

You have an excellent opportunity to add to your portfolio now. But, remember to keep a time-frame that allows for hiccups in the economy. Your plan may be 2-5-10 years or longer. Successful real estate investing and generational wealth building is a marathon, not a sprint.

Please note: We’ll be soaking up the summer for the rest of August. Your newsletter will resume September 15th 2014. But, you can still catch us at our blog  Enjoy your summer ;) 

South Central Edmonton: Ritchie 4-Unit Cash flow Renovation Project

Turbo charge your portfolio.

This 1981 built Side by Side Duplex is located near Mill Creek Ravine and minutes from Whyte Ave and Whitemud Drive in the mature and desirable neighbourhood of Ritchie.

This property has front entrances for the 2 X 2BD main floor units and side entrances for the 2X 1BD lower units. This property was built as a duplex but has one suite added, another suite will be added to the second basement. This is a purchase plus improvements deal, meaning that we wrap the renovations into a new mortgage. Ensuite laundry to be added. 1 x double detached garage.  Excellent access to UOA, downtown and the Whitemud. Comes complete with great tenants making this a totally turn-key property for you.

Ritchie is a much sought after, mature area that is a desirable area for tenants and owners alike. HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

**Please note this is a renovation/conversion project. The property type is for a side by side duplex and renovations will not render it a legal 4-plex. Purchase price factors in the renos**

Purchase price: $675K
Total Investment: $165K
Your Estimated 5 Year Profit $93,707K
Your pre-tax Total ROI is 57% or 11% per year

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!


Oil Sands gushing jobs mark divide in Canadian economy

By Greg Quinn, Bloomberg, July 23rd, 2014

In Canada’s economy there’s Alberta, and there’s everywhere else.

The oil- and gas-rich western province was responsible for all of the country’s net employment growth over the past 12 months, adding 81,800 jobs while the rest of Canada lost 9,500. Alberta’s trade surplus, C$7.4 billion ($6.9 billion) in May, almost matched the deficit rung up everywhere else.

If growth trends over the past decade continue, Alberta would pass Quebec to become the country’s second-largest provincial economy in three years, according to data compiled by Bloomberg.  FOLLOW THIS ARTICLE


View from Alberta: Is oil by rail a sea change or a temporary bridge?

By Stephen Ewart, Calgary Herald, July 23rd, 2014

Other than Ottawa’s new speed limits on trains moving dangerous goods through urban areas, there was no slowing down the rail industry’s rapid advances into the oil and gas sector this spring.
Canadian Pacific Railway and Canadian National Railway reported record second-quarter financial results in the past week, based in part on strong North American energy markets that included the growing volumes of crude transported by rail as well as increased shipments of frac sand and drill pipe.   GRAB THIS STORY

TransCanada gets nod for new oil pipeline pipeline adds to 2,100 miles of pipe across Alberta

By Daniel J. Graeber, UPI, July 24th, 2014

CALGARY, Alberta, July 24 (UPI) --A 56-mile pipeline planned through Alberta will be a foundation to plans to increase oil sands production in the province, TransCanada said.
The Alberta Energy Regulator approved TransCanada's plans to build the Northern Courier pipeline from the Fort Hills oil sands extraction facility to a tank facility operated by energy company Suncor in Fort McMurray, Alberta. 

"We are pleased that the Alberta Energy Regulator has approved Northern Courier, which will be a critical piece of infrastructure to support the long-term plans for growth and increased production from the Alberta oil sands," Chief Executive Officer Russ Girling said in a statement.  GRAB THIS STORY

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.

“Deep summer is where laziness finds respectability."  - Sam Keen

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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