Edmonton Real Estate Investor: 5 year plan to investing 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

February 1st., 2017

Volume 22, Issue 02

Dear Friends and Partners,

Lately, I’ve been reminded of Nate Silver’s quote; “We must become more comfortable with probability and uncertainty.” That may feel like understatement, but it's not a determent. When your surroundings seem unstable it is natural to stop and take stock before moving forward. Paradoxically, we do the same when things are good. If your life is going well, you may be less likely to make pivotal changes.

I find it a necessary and rewarding exercise to force the question of ‘purpose’ to myself at these times. You can ask this question in any facet of your life; money, health, relationships. It is particularly good for investing in unsettled times and helps focus on the core rational for doing so. If you’re not already doing it, try it. Identify and clarify the ‘purpose’ of what you are doing and check it to see how compatible it is in your big picture. Relevancy matters.

The actions we choose either lead us closer or further away from our core goals. Taking regular stock of these goals and purposes is how we measure where we are and determine our overall state of happiness, safety and health.

Whether looking to stocks, precious metals, mutual funds, GICs or a plethora of other investments you’ll be hard pressed to find investments that produce as stable a return as income property. Real Estate isn’t immune to downturns either, and you’d be naive to think otherwise. Cycles may be longer or shorter, valleys deeper and peaks not quite so high or any variance in between; this is the uncertainty we all face.

Check out this terrific article that Steven Kaufman wrote on The 7 Tips Entrepreneurs need to know before investing in Real Estate, good stuff!

Central (Downtown) Edmonton: West Jasper Place, 6-Unit Cashflow Apartment

Turbo charge your portfolio. For those wanting a low risk investment in a gentrifying area with 6 units under one roof - here it is. This 6-plex offers is 5 minutes to Grant MacEwan, 6 minutes to Hospital, 10 to downtown.

This is property has many 3 of the 6 units recently upgraded. 4 X 1BD, 1 X 2 bedroom and 1 X BACH, all units are above grade (no basement suites). 1974 built, 6 parking stalls and great curb appeal.

Terrific access to local amenities in highly rent-able West Jasper Place. Property is zoned R7 and is a legal, purpose built apartment. 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 the transitioning neighbourhood of WJP.

Comes complete with great tenants making this a totally turn-key property for you. WJP is a mature neighbourhood that is convenient for tenants working downtown or attending Grant MacEwan. 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.

Purchase price: $680,000
Total Investment: $161,200
Your Estimated Pre-Tax 5 Year Profit $102,145
Total ROI is 63% or 12.6% per year

These 6 (legal) 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 real estate market looking unsettled, expert says
By Gordon Kent, Edmonton Sun, January 17th., 2017

Edmonton has been sailing through relatively calm waters during Alberta's economic meltdown, but there could be choppy days ahead, real estate specialist Don Campbell said Tuesday.

The capital has benefited from a stable government workforce and such major construction projects as northeast Anthony Henday Drive, Rogers Place and towers in the Ice District, said Campbell, senior analyst at the Real Estate Investment Network. READ MORE HERE

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Alberta’s ‘bittersweet’ recovery: Don’t expect a job surge anytime soon, TD warns
Despite GDP growth forecast, report says ‘it will likely take some time to filter through the job market'

By Robson Fletcher, CBC News, December 20th, 2016

Alberta's economy is still expected to lead the country in growth over the next two years, according to the latest forecast from TD Economics, but the report warns that doesn't mean jobs will suddenly come surging back to the province.

"This year's top performing economies, B.C. and Ontario, are expected to lose some momentum thanks to a cooling in the housing market, while Alberta and Saskatchewan head to the top of the leaderboard," the report reads.

"But, this will be bittersweet, as the job markets in these oil-producing economies are expected to remain soft, leaving unemployment rates historically elevated.” GRAB THIS ARTICLE

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Kevin Libin: Why is Alberta’s economy the only one the Trudeau Liberals are plotting to ‘phase out’?

By Kevin Libin, Financial Post, January 30th., 2017

Which Canadian leader will finally lay out a national plan to phase out Ontario’s auto industry?

Obviously, with the auto sector accounting for half-a-million jobs in Canada, at least 1,200 Ontario parts and equipment suppliers, and about 20 per cent of Ontario’s GDP and 12 per cent of Canada’s, it’s not something we can phase out tomorrow, naturally. But the more than two-million vehicles produced in Ontario annually burn billions of litres of carbon-heavy gasoline every year, emitting tens of millions of tonnes of carbon dioxide. This cannot go on. FOLLOW THIS STORY

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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.

“It’s always good to be underestimated.” - Donald Trump

Warm Regards,

Todd and Danielle Millar

"The West Coast actor turned real estate guru says investors should concentrate more on what is happening in their backyard than what the mainstream media has to bemoan about the property market.

The RE/MAX agent says when he purchased his first property in Vancouver in 2000, the media then was also giving buyer pause for thought."

“Based on the media reports then, I was convinced I bought it for too much,” he says. “The same is happening now with all of the negative press with people unsure whether to buy or not.

“I do read all the news reports, but I concentrate more on what is happening in my own backyard and locality. You need to make your own decisions and not base decisions on general reports.”

I'm not supporting the source, just the comment... It's not a Canadian Real Estate market, it is a local market. We've said that for years.

You should rely on economic data, local data, your city's local politics and of course the property to tell you what is a good buy and what is not.

I'm from Vancouver and what the news (negative) is saying and what the market is telling me in certain target neighbourhoods is don't buy outside of my specific niche or don't buy at all.

There are good deals in bad markets and bad deals in good markets. Read More

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

April 1st., 2013
Volume 14, Issue 4

Dear Friends and Partners,

When were you last on all fours, head in the toilet, gut heaving and eyes popping; when was your last hangover? I have quaffed less than half a bottle of fine vino over the past decade. The last time I drank too much was probably sometime back in my 20's. Its hard to remember how great the night was, or how much fun I was having, but I sure do remember how bad I felt the next day.

I bring up this disgusting image because I realize that it is very much a kin to a marketplace hangover. See, we have a lot of good news stories in Alberta and then we have the scary global ones. We take two, three, four steps forward with our Alberta economy and then a giant one backwards with politics and pipelines. When we scrutinize a proper real estate investment here, we get excited because it IS a good deal and it will do well. But, just like you might never drink Malibu again, that hangover can burn an image in your mind that really turns your stomach.

For those of us that bought in the late 90's or pre mid-2007 we look back without hangover... For those of us that bought at the party's height, we may still feel a tinge of pain in the temple when we see all the 'good news' stories in Alberta and wonder 'When the heck will my property be at that value again?!"

Real Estate investing is a long-term game. The cycles can last for years and sometimes even decades, just as you can flip a house in a day and make money. Unfortunately real estate isn't a very liquid asset and the time we want to, or need to, cash out may be at the worst time in the cycle.

Moving forward, investing in Edmonton and other parts of Alberta is going to seem like a warm house-party. There will be good news stories, lots of laughs and long friendships made. Some will enjoy the festivities too much and leave with a hangover while others will have made friends (investments) for life.

The best thing you can do is stress-test your potential property by calculating higher interest rates, factor in lower rents, use down payments of 20% or more, manage effectively and know what your exit strategy is before you buy. There are more ways to mitigate risk and different strategies to employ that will allow you to leverage better and protect yourself more, but for now we will focus on avoiding a hangover.

South Central Edmonton: 4 Suite Cash Flow Property in Bonnie Doon

Turbo charge your portfolio. Upgraded 1965 built 4 unit property with separate entrance to lower suites. Upper units have been renovated and using our PPI strategy the lower units are upgraded at purchase, and costs wrapped into mortgage. You'll find 2 X spacious 2 bd units upstairs and 2 X bright 1 bd units downstairs. There is common laundry for the lower units and upper suites have en-suite laundry. Each unit has its own exterior storage locker as well. There is also a double detached garage adding cashflow. Excellent location directly across from Bonnie Doon mall on a small side road, 1 block north of Whyte Avenue. 5 minutes to Rowland Drive and ravine, with routes to the Yellowhead and Whitemud minutes away, 10 minutes to downtown and UOA. Fast access to Wayne Gretzky Drive and on all bus routes.

Comes complete with great tenants making this a totally turn-key property for you. Convenient south central area of Bonnie Doon with easy access to transit and downtown. Bonnie Doon is a mature, sought after area near the university and Whyte ave. Highly rentable; 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 south side.

Purchase price: $625K Total Investment: $145,601K. Your Estimated 5 Year Profit $77,327K. Your pre-tax Total ROI is 53% or 11% per year + $400 Cash Flow

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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Alberta Economy Continuing its Impressive Boom

By Mario Toneguzzi, Calgary Herald, March 19th 2013

CALGARY — Any dark clouds that are currently hanging over Alberta will clear by 2014, paving the way for strong business and consumer activity, says a report by RBC Economics.

The bank’s latest Provincial Outlook, released Tuesday, said the province’s economy will continue its “impressive boom” through 2013, after leading the country’s economic growth in 2012, despite facing challenges.

RBC forecasts a provincial real GDP growth rate of three per cent due to strong crude oil production as well as high levels of capital investment, employment and population growth. This will be second in the country behind the 5.1 per cent growth expected in Newfoundland & Labrador. GRAB THIS STORY

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Lamphier: Alberta's population Boom isn't Shaking Foundation of housing Market

By Gary Lamphier, Edmonton Journal, March 22nd 2013

EDMONTON - If you’re looking for a job in Newfoundland and Labrador, good luck. You’ll need plenty of it.

For every job opening, there were 16 job seekers in December, according to recent StatsCan data. In New Brunswick, the ratio was a still-stratospheric 10.5-to-one.

The odds of landing a job were only marginally better in Ontario, where eight applicants fought over every vacancy.

Here in Alberta? It’s a completely different story. For each unfilled job there were fewer than two people unemployed in December. No wonder newcomers continue to beat a path to Wild Rose country. Despite worries that discounted crude prices may prompt a slowdown in the oilpatch, the stampede shows no signs of abating. FOLLOW THIS ARTICLE

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Alex McBrien: Why Alberta Needs a Diversified Economy and, Three Ways We Can Get There

By Alex McBrein, Huffington post, March 23rd 2013
The Alberta government is facing a deficit in the area of $4 billion. By now we have all heard the discussions regarding the recommended courses of action that the government should take to make sure that Alberta's finances get back into the black; reform Alberta's taxation system (although the budget saw no such reforms), cut government spending, and diversify Alberta's energy export markets.

All of these will certainly be needed in the short term, to some degree or another, to get Alberta's finances back on stable footing. However, all of the above are just that, short-term solutions to a more systematic issue facing Alberta's economy. University of Calgary economist Ron Kneebone was right to suggest that the real issue at hand is "the [provincial] government's historic reliance on resource revenues to bankroll its operations". Instead, what is needed to mitigate the economic risks associated with being a resource- based economy is a sustained focus on diversifying Alberta's economic base.

This will be a complex and challenging task (as it is for most resource-based economies), however placing focus on areas that build off of Alberta's current economic strengths, that make it easier to set up a small business, and that increase investment in arts and culture are sure to go a long way in achieving this goal. READ MORE HERE

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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.

"Always hold your head up, but be careful to keep your nose at a friendly level." -Max L. Foreman

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

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.

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

February 15th., 2013
Volume 14, Issue 1

Dear Friends and Partners,

Not only have we had warm weather lately, but we've seen a hot start to multi-family real estate in some of our key areas. How about you? What's the real estate climate like where you live? Are you seeing more listings on your street; anything worth buying? Many deals continue to trade hands before hitting the MLS, but you can still standout, like we do, and attract the right vendors to you. We can see a lot of volatility in stock markets as well as local real estate markets and that creates opportunity. I spoke with several will-be, no longer would-be, investors at the last REIN meeting I attended. I helped them design a personal strategy to evaluate when and when not to pull the trigger. If you need help like this, send me an email with 'Will-Be Investor' in the subject line and I'll endeavor to help you too.

South Central Edmonton: 4-Suite Cashflow Property in Forest Heights

Turbo charge your portfolio. Upgraded 1966 built 4 unit property with separate entrance to lower suites. Upper units have been renovated and using our PPI strategy the lower units are upgraded at purchase and costs wrapped into mortgage. You'll find spacious 2 X 3 bd upstairs and bright 2 X 2 bd units downstairs. Renovations at time of purchase to include 2 HWT and windows. The 2 lower units are each 750 sqft units with shared storage. Features down include some new counters and flooring. There is common laundry down. The yard is large and partially fenced. Additional upgrades after purchase will include new windows and exterior/upper suite modernization. 5 minutes to Rowland Drive and ravine, with routes to Yellowhead, 10 minutes to downtown and NAIT. Fast access to the Wayne Gretzky Drive and on bus routes.

Comes complete with great tenants making this a totally turn-key property for you. Convenient South central area with easy access to transit and downtown. Forest Heights is a mature and desirable family neighbourhood that will benefit from the downtown development ripple effect. Highly rentable area; solid value and stable rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's improving downtown core.

Produces $447.23 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $620K Total Investment: $144,230 K. Your Estimated 5 Year Profit $76,547 K. Your pre-tax Total ROI is 53% 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!

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Alberta Bucking Economic Trends
By Gordon Isfeld, Financial Post & Edmonton Journal, February 9th 2013

For a while, it looked like Canada's job market would remain oblivious to the serious signs of a slumping economy. Ditto the housing sector, which had been defying forecasts of an impending slowdown for months.
Now, reality appears to be putting both sectors in check, at least outside of Alberta. "Combined with the steep drop in housing starts as well as the still-wide trade deficit, the jobs report rounds out a day of infamy for Canadian economic stats," said Doug Porter, chief economist for BMO Capital Markets. GRAB THIS STORY

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Jim Prentice Advocates for Oil Pipeline Across Canada

Dawn Walton, Globe and Mail, February 9th 2013

CALGARY - Market access for Alberta’s oil is the “most important economic issue” facing Canada, according to former federal cabinet minister Jim Prentice, who called for more pipelines to move energy to new markets.
Speaking to an economic forum on in Calgary on Saturday, Mr. Prentice, who held cabinet postings including industry and environment under the Harper Conservative government before returning to the private sector as executive vice-president and vice chairman of CIBC, said Canada has failed to execute a cohesive energy strategy. FOLLOW THIS ARTICLE

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No Alberta Oil Exported From West Coast Without Cooperation

By David Dodge and Ted Morton, Troy Media, February 9th 2013
The passing of former Alberta premier Peter Lougheed provided an occasion to remember not just his fierce defense of Alberta against the predatory policies of then prime minister Pierre Trudeau, but the substance of that defense: strong provincial rights based on the constitutional principle of equality of the provinces.

Equality of the provinces may not sound like a big deal today. But in the 1970s, it was.

To appreciate the significance of Lougheed’s achievement, it is necessary to recall the state of Canadian federalism after the Second World War. Writing in 1954, J.R. Mallory, one of English Canada’s leading constitutional scholars and a professor at McGill University, observed that “in a federal system there is assumed an equality of influence and treatment of the various individual units,” but that “[i]n Canada the facts are, and always have been, very different.” READ MORE HERE

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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.

"Don't sweat the petty things and don't pet the sweaty things." -George Carlin

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

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.

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.

What a year!

We finished a Cornerstones Grant Suite, reached Platinum REIN member status, received the 2011 Top Player award from REIN, were semi-finalist in the Canadian Real Estate magazine Western Canada Top Investor Award, had a baby and managed to write for magazines in Canada and the UK and be in a couple of Don R. Campbell's books.

To be honest Todd thinks he is working at 40% capacity (time management) and I'm probably 30% so what could we do if we took it up a notch...? If I were at 40% I would have posted this sooner!

To all our partners you've pushed us to reaching these goals by asking questions and we couldn't have done any of this without you!

"Some people see investors as reckless risk-takers, but the one-time lead Dragon in the Den, W. Brett Wilson, has a different impression. Shane Buckingham explains

Risk prevents many ordinary people from acting. Consumed with fear, they dwell only on the potential for failure instead of the potential returns a solid, albeit chancy, investment could produce.

Wilson, who made the bulk of his wealth in the oil and natural gas industry, started investing in real estate about 10 years ago in order to diversify his assets. But unlike his other ventures, his real estate investments aren't too risky. "I see a lot of people trade real estate, but I purchase properties on a buy-and-hold basis. I just like to put it away, so I don't have to spend a lot of time thinking about it. That's partly because I have partners that worry about, but, more importantly, it's because I believe in a long-term hold strategy." Read More

I've watched about 8 episodes of Dragon's Den and I love it. Sometimes I cringe at the pitches that some folks make or worse yet the wrath of some Dragons… Its entertaining and hopefully inspirational. Brett Wilson's new program sounds like it will follow a bit deeper the real 'risk and reward' that you face when you get in the game. Looking forward to this!

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Whether you're interested in getting started, or adding a more sophisticated strategy to your bag of investing tricks, or perhaps looking for that perfect Christmas gift for a family member or friend,

Click Here to see the list of discounted products. Increase your savings with free shipping on all products during the REIN Blowout Sale!

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