Tuesday, December 01, 2015

Crane Spotting

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 1st., 2015
Volume 19, Issue 9

Dear Friends and Partners,

It’s getting tougher to pick ‘positive' articles for our newsletter and remain balanced. The fact is that there are good news stories, but there are many more ‘bad’ or truly; uncertain ones. Make no mistake, Alberta is in a tough place right now and it’s going to take a while to dig ourselves out and get the economy back on track - that looks far into the future.

Now, with that said it doesn’t mean that everything is bad. There is much opportunity for businesses in the greening, environmental improvements and infrastructure sectors, for example. There is also opportunity for development in the EAD for the skillful and experienced investor; noobs will run a very high risk of losing their shirts wading into this market.

And what for the strategic long-term investor?  Buy and holds must be patient, build up cash reserves and weather the downturn. Yes, there is opportunity to add to your portfolio when you buy right, buy for cash-flow and know your exit.

The first article I have used shows how Terry Paranych, long-term Edmonton investor, continues to buy. Terry has been buying for 30+ years. His strategy is to build up massive cash-flow, not sell units. For investors needing to exit in a short time frame, this might not work unless you are a skilled wholesaler that can buy, add value and sell at discount - with profit. The other articles are cautionary; we do have real issues in Alberta that need our attention and care to navigate.

South Central Edmonton: Hazeldean 2-Unit Cashflow 


Great, 1200 sqft bungalow with suite; a winner to add to any portfolio. 1957 built, located a few blocks from 99th St., on an inner road insulated from traffic. Terrific access to local amenities in trendy Hazeldean. Walking distance to schools, transport and close to downtown. This property has separate entrances to each suite; 1 X 3 bd up and and 1 X 2 bd, there is also a double garage and small driveway.
This property has a tried and true layout and was built to last. Included in purchase price is an estimated $30K in renos to legalize suite and make the property shine! This is a turn-key deal. Good access to downtown and in a highly rentable and desirable neighbourhood.

Comes complete with great tenants making this a totally turn-key property for you. Hazeldean is a mature neighbourhood that is desirable for tenants working in the South and downtown. 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: $380,000
Total Investment: $90,120
Your Estimated 5 Year Profit $51,057
Your pre-tax Total ROI is 56%

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!

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Edmonton’s Ice District spurring new real estate projects

By Omar Mouallem, Globe and Mail, November 20th, 2015

From the driver’s seat of his Escalade, real estate investor Terry Paranych is recreating the moment he found his newest buy on the northern fringe of downtown Edmonton. He was picking up Chinese food in a rough part of town that had been neglected for decades, until Edmonton Oilers owner Daryl Katz turned his attention to it for the team’s new home.

“I was looking at all the cranes,” Mr. Paranych, who’s better known as a residential agent, says. “All of a sudden I see a commercial real estate sign on the corner.” He points to a red, humble, six-unit apartment he  secured for a $505,000 bargain.   GRAB THIS STORY

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Debt delinquencies rise in Alberta, bucking national trend
TransUnion says ripple effect of oil price slump seeing more consumers struggling to make payments

By CBC News, November 18th, 2015

"Credit and loan delinquencies are starting to pile up in Alberta as consumers cope with the ripple effects of the collapse in the price of oil, a new report says.

The credit agency TransUnion released figures Wednesday showing that Alberta surpassed the Canadian average in delinquencies in the third quarter of this year."   READ MORE HERE


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Oilwell drilling contractors expect one of the worst years in history

Canadian Association of Oilwell Drilling Contractors (CAODC) releases grim forecast for 2016

By Kyle Bakx, CBC News, November 18th., 2015 

The Canadian Association of Oilwell Drilling Contractors has released a bleak forecast for the upcoming year that projects the downturn will only get worse for the sector.

CAODC projects 4,728 wells to be drilled, a decrease of 58 per cent from the 11,226 wells drilled in 2014.

"The 2016 forecast is grim or as we call it in our office, butt ugly," said Brian Krausert with Beaver Drilling, who delivered the CAODC forecast to the organization's members at an event in downtown Calgary. "It's not a pretty sight, but I know the industry is resilient enough and hopefully we'll be here next year."   FOLLOW THIS ARTICLE


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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.

“Resilience is accepting your new reality, even if it’s less good than the one you had before.” Elizabeth Edwards 

Warm Regards,

Todd and Danielle Millar


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