Tuesday, January 31, 2017

There is no Canadian Real Estate Market

I read this article the other day. It's not bad advice, all markets crash, it's not news to anyone. Although sometimes is a bad surprise if you're in that tumbling market. 

Part of being an investor is going through some really bad stuff, losing money, losing tenants, damaged properties and (gasp) the 3am toilet call. 

The biggest problem is there is no Canadian market. There's the Vancouver market and the Galiano market and the Cape Breton market and though they are all Canadian they couldn't be any more different.

So, yes, your market will crash, hopefully you aren't over exposed. If you are learn something from it get up and start over. Certainly don't run away and never look back because "investing is dangerous".

Not investing is more dangerous. 

Monday, January 30, 2017

A united front in Alberta

Saskatchewan Premier Brad Wall watching potential Alberta merger  - "But their proposals have a marked difference. Kenney's five-point plan sees a new party rise from nothing, whereas Jean wants a united conservative front using the Wildrose Party's legal entity as a base.

There's not enough time to create something out of nothing, Jean says, echoing the arguments against Kenney's plan made by PC leadership hopefuls Richard Starke and Byron Nelson.

In 1997, the Saskatchewan Party had nothing — no support base, no constituency associations and, most importantly, no cash.

At nightly town hall meetings across the province, MLAs would try to sell memberships and get people involved as volunteers or potential candidates.

Although Kenney insists the question of transferring money between parties in Alberta is up for debate, the province's chief electoral officer, Glen Resler, says it's not allowed.

That would leave a new party starting from scratch, hoping it can raise enough money to effectively contest the 2019 election.

For Jean, the risks are untenable.

Wildrose raised $2 million last year, saving a large chunk of it in a war chest for the next election.

Dissolving the party would mean giving that back to donors or, worse, the government. It would also mean surrendering assets including every single computer, giving up leases and getting rid of staff.

"The idea of blowing up both parties and starting a new one is, in my opinion, very, very dangerous," Jean said.

He insists his plan would allow a united conservative force to hit the ground running, and eliminates the risk of a party in disarray if Premier Rachel Notley calls a snap election." Read full article

Tuesday, January 17, 2017

Cash flow tips for Entrepreneurs

No one has money to spend, sales are down and the Christmas spending frenzy visa bill is coming in the mail. What can you do to increase your cash flow in tight times?

This article is excellent 7 cash flow resolutions for entrepreneurs in 2017

Real estate is different in that you can't upsell your rent once you're in a lease. Once popular add-ons, like the monthly pet fee, are exactly what causes tenants to move to cheaper places.

So keep expenses low. Keep good tenants even if it means a decrease in rent. It's better to not have to renovate AND drop rent to meet market prices.

Upkeep is crucial now as you can nip a bigger problem in the bud. For example I pay for all the tenant's furnace filters, it's much cheaper to spend $30 of prevention than $90 plus for a flame sensor that's dirty.

People will always need places to live and Edmonton is a vibrant city going through a rough patch...

 I heard the other day $60 is the new $90 regarding oil prices:

"On average, the well cost assumptions for these producers have fallen by almost 25%. At the same time, the expected recovery per well has climbed by a similar amount. In other words, on lower costs and improvements in extraction, producers in these three light oil plays are spending almost 40% less, on average, to recover a barrel of oil."

Let this be an example on how to run your properties, make do with less and when the economy bounces back you'll have increased your cash flow. 

Monday, January 16, 2017

Lemonade from Lemons

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

January 16th., 2016

Volume 22, Issue 01

Dear Friends and Partners,

Happy New Year!

Hopefully you’re rested and recharged for the year ahead. We’ve got some big changes in the U.S. that undoubtedly will influence us in some way, hopefully for the better. Despite a gloomy start to 2017, there are some bright spots with pipelines, steadier oil prices and lower real estate values (good for buyers, bad for sellers). This year is looking similar to 2016 but with some relief in the later half of Q3 being projected.

When investing for the long-term, cyclical dips present good opportunities to expand your portfolio. Seasoned investors understand that down cycles occur, no matter how protracted one is - it will change direction.

As for adages; slow and steady wins the race & make lemonade from the lemons life gives you are good ones to follow. Change and creativity come from challenges, this is a time to improve and invent - we can shape a good year ahead.

South Central Edmonton: Queen Alexandra, Legal 6-Unit Cashflow 

Turbo charge your portfolio. For those wanting a low risk investment in a great area with 6 units under one roof - here it is. 6-unit with 5,600 sqft, steps from trendy Whyte Ave. and across the road from school. 5 minutes to U.O.A., 6 minutes to Hospital, 10 to downtown.

 This is property has many recent upgrades and offers a self contained basement unit. 3 X 1 bedroom units with balcony, 3 X bachelor suites. 1916 built, RF3 zoned building. 6 Parking stalls and single garage. Terrific access to local amenities in sought after Queen Alexandra.
Purchase price to include reserve fund and light renovation budget to make it standout - rolled into mortgage. This is a turn-key deal. Excellent access downtown and in this highly rent-able mature U.O.A. neighbourhood.

Comes complete with great tenants making this a totally turn-key property for you. Queen Alexandra is a mature neighbourhood that is convenient for tenants working downtown or attending UOA. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton’s growing centre and University Hospital.

Purchase price: $628,000
Total Investment: $179,000
Your Estimated 5 Year Profit $91,846
Your pre-tax Total ROI is 51% or 10% per year

These 6 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!


10 Stories that shook Alberta’s economy in 2016

By Chris Varcoe, Calgary Sun, December 29th., 2016

Fires, recession, pink slips and deficits.

At times, 2016 delivered so much negative news, it felt like Alberta's economy was a punching bag, swinging back wildly from one blow only to be pummelled by another.

The fire that ravaged the community of Fort McMurray in May caused thousands of people to flee and the entire oilsands area to shut down.

In tandem, the second year of recession saw Alberta's jobless rate soar. Oil prices sank below US$30 a barrel in January and February before recovering, topping $50 by the end the year.READ MORE HERE 


Sturgeon refinery could be the start of something even bigger chairman says

By Gordon Kent, Edmonton Journal, December 2nd, 2016

A small army of tradespeople is piecing together the giant storage tanks and kilometres of tubing for a major project that could kickstart even more industrial development in the Edmonton region.
The $8.5-billion first phase of the Sturgeon refinery isn’t scheduled to start turning bitumen into ultra low-sulphur diesel and other products until late 2017, but North West Refining chief executive and chair Ian MacGregor is champing at the bit to begin the other two phases.  GRAB THIS ARTICLE


How will the Trump factor affect Alberta? Economists say they’re optimistic

By Stuart Thomson, Edmonton Journal, January 8th., 2017

Two of Alberta’s top economists say they’re more optimistic than most people about Donald Trump’s effect on the province’s economy.

Catherine Rothrock, Alberta’s chief economist, said there’s one big caveat about predicting what the president-elect of the United States has planned, though.

“I don’t think anyone knows,” Rothrock said at a real estate conference on Wednesday morning.

“We have spent some time trying to wade through the Trump factor,” she said. “I’m probably a little more optimistic than other people, especially on the trade side.”FOLLOW 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.

“Write it on your heart that every day is the best day in the year.” -Ralph Waldo Emerson

Warm Regards,

Todd and Danielle Millar


P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.


Monday, January 09, 2017

Best Winter Festival City

Edmonton's Ice on Whyte Festival ranked third as a must see Canadian winter festival.  Ice on Whyte is really fun but it's only one of many, many winter festivals this city has to offer.

We've been to so many incredible FREE festivals that cater to all ages. This is the best spot to find everything going on is here Things to Do this Weekend in Edmonton

Coming up this weekend is the  Deep Freeze A Byzantine Winter Festival

Thursday, January 05, 2017

Good Advice for 2017

It seems everyone is glad to see the back of 2016. For so many different reasons it was a hard year. We hope 2017 is better but it could be worse. The only smart thing to do is protect yourself and your assets. Don't be misinformed or dis-informed both are rampant in our society now.

Having said that Robert Kiyosaki has an investment take on 2017:

“We’re on the edge of a cliff right now. We have never been here before. If you’re still saving money when interest rates are negative, you’ve got to be crazy. When you’re investing for the long-term in the stock market, where there is no connection between stock price and reality, you’re crazy." Rich Dad author, Robert Kiyosaki 

Read more here