Thursday, December 04, 2014

5 Factors to Real Estate Success

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


December 4th., 2014
Volume 17, Issue 9

Dear Friends and Partners,

Over the last few months we’ve heard a lot of feedback from readers like you, about our NuWire series. What we’re hearing is: “Keep it coming!”

Investors have an insatiable thirst for knowledge. In that spirit, we’re re-posting a few of our earlier NuWire articles to help you define your target area, property and tenant profile.

Before we jump into this month’s issue though, we want to wish you and your family a wonderful Holiday Season!

We’ll be taking a winter break and this will be the last issue for 2014. New issues (#10 Volume 17) will resume January 15th, 2015. Take a break, recharge, and get ready for a rocking year ahead!

Real Estate Investing: Focus on the Fundamentals
There are three main criteria that must be addressed before moving ahead with any real estate investment. The key to a successful property purchase comes first from an evaluation and understanding of the area in which you'll potentially be pouring your capital. Today we'll focus on the fundamentals.

What makes a good property investment? First, look at what is driving the market. I'll give you the formula that I use to make profitable purchases. You can use these rules of thumb in any market to help you separate fact from fiction and leave emotion out of the investment.

The Top 5 factors you need to study:


Economy: Does your target area have a diverse economy or a single industry economy? The more diverse the economy, the better the buffer to weather out economic storms, especially when there are several industries that ebb and flow at different times, which creates more stability. Is there outside investment? If so, on what scale—millions or billions of dollars?

Population: Is your target region experiencing an increase of new workers, students or families? A growing population increases the demand for rental housing and home purchases. The younger the population demographic, the better; retirees may represent a niche market to sell property to, but they are unlikely to produce a long term rental and resale base. You need to determine whether there is an overall housing demand in the area. Is it growing faster than average?

Real estate cycle: Is your area beginning to grow and flourish, or is it nearing the end of its peak? Don Campbell, an author and real estate investor, breaks down the real estate cycle into four seasons—spring, summer, fall and winter—in his book Real Estate Investing in Canada. Like any good farmer, you should plant your seeds—buy your properties—in the spring, tend to them—repair, rent and manage them—in the summer and harvest—sell them—in the fall. In the winter, take a rest as you start preparing for the next planting season by doing research into the next target area and getting ready for the next buying opportunity.

Political leadership: Is there a positive, growth oriented atmosphere in your region, one that will foster long term growth?

Transportation improvements:
On a macro scale, look for areas that will benefit from a change in infrastructure or a transitional change in demographics as well as the beginning of renewal.

Keeping your investments straightforward, unemotional and grounded in reality pays. Choose a place where you can grow your money slow and steadily. When it's time to take profits, have your exit strategy in  place to ensure success.


 Central Edmonton: Terrace Heights 4-Unit Cashflow (PPI Deal)


This 1963 built Side X Side Bungalow with in-law suites is located of Wayne Gretzky Drive in Terrace Heights. Easy access to Downtown, UOA and the Yellowhead as well as many parks and schools to enjoy in this neighbourhood.

This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites. This property was built as a duplex and will need renovations to operate the (non-conforming) in-law suites.

This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage. En-suite laundry to be added. Property has parking pad. Excellent access to downtown, transit and Sherwood Park.

Comes complete with great tenants making this a totally turn-key property for you. Terrace Heights is a great mature area that is a desirable for tenants working in the city or attending U.O.A..

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. Purchase price factors in renovations. P.P. of $575K + $25K renovations = $595K.

Purchase price: $595,000K
Total Investment: $139,000K.
Your Estimated 5 Year Profit $94,475K.
Your pre-tax Total ROI is 68% or 13.6% 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!


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Two 51 story towers planned for Edmonton’s downtown
By Caley Ramsey, Global News, November 15th., 2014
Turbo charge your portfolio.

Watch above: It’s described as one of the city’s biggest residential infill projects. One with the potential to change downtown Edmonton. As Eric Szeto reports, the latest condo development proposal is a reflection of Edmonton’s hot market.
EDMONTON – Yet another mixed-use development is in the works for Edmonton’s ever-booming downtown.

An Ontario development company is currently preparing a rezoning application to build two 51-storey towers near MacEwan University. FOLLOW THIS ARTICLE

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Jim Prentice says Alberta forgot some simple truths on energy industry

By CBC News, November 23rd, 2014

Jim Prentice says Alberta 'forgot some simple truths' on energy industry
Premier says goal is to work towards building pipelines in every direction possible

Alberta Premier Jim Prentice says the province has forgotten some key points about the sustainability of the energy industry and is vowing to work towards building as many pipelines as possible.
In a speech to the Economic Club's Canadian Energy Summit in Calgary on Friday, Prentice said the province needs to remember that hydrocarbons are only valuable when there are competing customers — and if there are multiple ways to ship the resource.

"For a period of time we lived comfortably in a world of insatiable American demand for Canada's energy products," said Prentice.

"Along the way we forgot some simple truths. We forgot that hydrocarbons are only valuable if there is someone willing to pay for them and moreover, someone who has the ability to receive them." READ MORE HERE
 
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We’ll be taking a winter break and this will be the last issue for 2014. New issues (#10, Volume 17) will resume January 15th 2015. Take a break, recharge, and get ready for a rocking year ahead!

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.

“Life is really simple, but we insist on making it complicated."  - Confucius

Warm Regards,

Todd and Danielle Millar

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