Edmonton Real Estate Investor: Edmonton real estate investing tips

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

November 15th., 2011
Volume 11, Issue 5

Dear Friends and Partners,

We're up again, no we're down again. Like a ball in the air, it has been tough to know exactly where it'll land - that has been our economy and politics of late. I suppose in a sense that is consistent. If you've been trying to figure out what Greece, Italy, France, Iran and the U.S.A. are going to do - don't. I have attached a quote at the bottom of this newsletter that offers sage advice for these uncertain times. Another good saying to practice now is "Hope for the best and plan for the worst". The Keystone pipeline is a good example, if we're not going to build it now; we can build it later. If not to the U.S.A., then to China. Use today to practice optimism like water; flow around your obstacles.

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West Central Edmonton: Cashflowing Three-Plex In Inglewood

Turbo charge your portfolio. Legal upgraded 1960 built 3-plex with separate entrance to all units. The main floor is massive with nearly 1900 sqft of beautifully designed space, including 3 bedrooms, dining, kitchen and living room. There are 2 large 1 bedroom self contained suites downstairs. You'll find coin operated laundry on the lower floor and main floor has its own laundry. Both lower suites have their own furnace and are legally built to city code. All suites are well maintained with the main floor having some luxury touches and the basements remaining simple, nice and functional. Outside is professionally landscaped, fenced and complete with parking for 2 cars plus a double detached garage. 20 minutes to U.O.A. and 10 minutes to Grant MacEwan, NAIT and Downtown. This property has good holding value and cash-flow.
Comes complete with great tenants making this a totally turn-key property for you. Convenient West Central area with easy access to transit and downtown. Excellent established neighbourhood featuring many heritage homes; 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 developing core.

Produces $400.64 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $449K Total Investment: $103,498K. Your Estimated 5 Year Profit $54,039.65K. Your pre-tax Total ROI is 52% or 10% per year + $400.64 Cash Flow in Your Pocket Every Month

Poised for massive growth. These 3 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: renovation costs, 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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Lamphier: Economic Future Lies With Booming Asia

By Gary Lamphier, Edmonton Journal, November 7th 2011

EDMONTON - It’s all about Asia now. As is increasingly obvious, that’s where Canada’s economic future lies.
If you don’t get that, you can’t appreciate what we’ll need to do to sustain our comfy Canadian living standards or secure our kids’ economic futures in the years ahead.

The world has changed. When some 20 million Americans remain jobless two years into a recovery, and crisis-ridden Europe is forced to beg China for bailout money, you know it’s different this time.

Asia’s soaring economic clout is reflected in the changing makeup of the world’s 250 largest energy firms, a list that’s compiled each year by Platts, a New York-based commodity research firm. GRAB THIS STORY

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Canada Defiant After U.S. Oil Pipeline Rebuff

By David Ljunggern, Reuters. Thursday November 10th, 2011

OTTAWA/CALGARY, Nov 10 (Reuters) - Canada will keep promoting crude from the tar sands of northern Alberta as a secure source of energy despite a U.S. decision to delay approval of a pipeline to carry the oil from Alberta to Texas, officials said on Thursday.
The Canadian government and the oil industry have limited options, however, as another controversial proposal to build a pipeline to export tar sands crude to Asian markets is just at the beginning of a lengthy review process.

The U.S. move to put off a decision on TransCanada Corp's proposed $7 billion Keystone XL pipeline for 18 months is a significant blow for Ottawa, which has strongly backed the project. READ MORE HERE.

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Gains In Edmonton Home Prices No.2 In Country Over Last Decade
Average goes from $124,203 to $328,803 - Still $10,000 off national pace

By Dave Cooper, Edmonton Journal, November 8th 2011
A red-hot economy fuelled unprecedented price appreciation in Edmonton over the last decade, making the city Canada's secondstrongest-performing market - up 165 per cent since 2000, says a report release Monday by Re/Max.

Across Canada, the report says the average value of housing doubled to $339,030 in 2010 from $163,951 a decade earlier.

In Edmonton, the average price of a home climbed from $124,203 in 2000 to $328,803 in 2010, peaking in 2007 at $338,636. 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.

"Adversity causes some men to break; others to break records." - William Arthur Ward

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 home-study sets at a discount. Get your copy of the Canadian Success Stories book and the 2011 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

September 15th., 2011
Volume 11, Issue 1

Dear Friends and Partners,

How did you spend your summer? Danielle, Ronan and I took a welcomed break and traveled through the Willm ore Wilderness Pa rk in northwestern Alberta. If you haven't been there, it is an awesome 1000 sq. mile section of rugged, wild land north of Jasper Park. We saw black bears, walked in pristine mountain valleys and dipped our toes into the chilly sulfur streams.

The days were hot and long. When we got back to the city we continued on with our home renovations (as well as the Cornerstone suite that we're doing) and gorged on the seemingly endless plump raspberries that our backyard bushes produce. As much as I love my work, I love to take time away and reflect upon it. I shared several balmy summer evening meals outside with a talented artist friend of ours. We also enjoyed a splendid visit with our close Japanese friends Mariko and Koji who flew all the way here to see us.

The change of location and spirited conversation helped me slow down and recharge the batteries. Returning from vacation the first thing I did was to sit down at my desk and write a top Ten Task list. I already had one before I went on holiday, but I was curious to see what my subconscious mind would deem the most important tasks. It was fascinating to see that the tasks remained the same but the order changed. The more creative tasks took priority and when I looked deeper at them, I could see that they held the greater value.

I hope that you came away from your 'holiday' with renewed insight and make a few breaks during your day to reflect and connect to what is important to you.

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West Central Edmonton: Cashflowing T hree-Plex In Westmount

Turbo charge your portfolio. Upgraded 1948 built 3-plex with separate entrance to all units. 3 stylishly finished suites; One 2 bedroom unit on main, plus one upgraded 650 sqft. 2 bedroom suites down and a very cool 2 bedroom suite on the top floor. The upper suites have laminate, fresh paint and original hardwood. There is a common laundry room in basement. The lower unit has new paint, brand new tub and toilet as well. Lower suite walks out to a private grassy, fenced yard. There is a 2 car detached garage with brand new door and opener bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to Yellowhead Highway and on the bus routes. These pictures show the detail and care that went into building this quality home.

Comes complete with great tenants making this a totally turn-key property for you. Convenient Central area with easy access to transit and downtown. Excellent established neighborhood featuring many heritage homes; 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 developing core.

Produces $440 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $384K Total Investment: $115K. Your Estimated 5 Year Profit $56K. Your pre-tax Total ROI is 49% or 10% per year + $440 Cash Flow in Your Pocket Every Month

Poised for massive growth. These 3 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: renovation costs, 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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Economic Ship Will Stay The Course
Government Focused On Debt Reduction, Financial Minister Says

By Gordon Isfeld and Keith Bonnel Postmedia News, August 20th, 2011

Canada's top financial leaders acknowledged Friday the country's economy is slowing but said they are ready to act if our major trading partners sink back into recession.
Finance Minister Jim Flaherty, appearing at a special parliamentary committee along with Canada's central banker, reiterated his call to "stay the course" and continue to work toward balancing the budget by 2014-15 as the best way to buffer Canada against the impact of a possible global downturn. GRAB THIS STORY

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Alberta's Theme Song - Take This Job and Love It

By Lorne Gunter, Calgary Herald, September 8th, 2011

Albertans are the workin'est people in Canada, by a fairly wide margin. And despite our rapidly increasing population (and thus our rapidly expanding workforce) we maintain the highest employment levels in the country and one of the lowest unemployment rates.
In general, this is true of all three Prairie provinces. Some of the old pioneering spirit of self-reliance still seems intact in Saskatchewan and Manitoba, too, along with a healthy dose of Protestant work ethic. FOLLOW THIS ARTICLE

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Opening Doors For Older Workers

Medicine Hat News Opinion, Thursday September 1st, 2011

If Alberta's economy grows according to forecast, the province could be facing a shortage of about 77,000 workers in the labour force by 2019.

That means older workers are going to be an increasingly valuable resource in the coming years. Some of them might not feel valuable if they've been victims of downsizing in the past few years as businesses struggled with economic difficulties. Fortunately, a new program launched in Lethbridge this summer is helping mature workers discover new paths back into the workforce. 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.

"Diligence is the mother of good fortune." - Benjamin Disraeli
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 2011 Top Ten Investment Towns of Alberta and Ontario.

Gary Lamphier of the Edmonton sun recounts 10 Lessons to Learn from the Great Recession. It's focused reading and informative and he does a great job of summing them up.

I have 5 things I learned from the global recession of 2008:

1. Keep a cash reserve - you need a reserve that can be accessed whenever you need it. Hopefully it will be large. A line of credit is the obvious choice it should be set up long before you need it because we all know banks don't give out money to the needy. You have to prove you can pay it back.

2. Keep your costs as low as possible - Don't spend on anything superfluous. Unless it's improving property value or reducing tenant turnover - you don't need it. I think this way for my own home too! It's comfortable but I'm not getting into consumer debt without seriously thinking about it.

3. Expect to pay more than you are - We ride the variable and can handle the thrill. Mortgage rates went to historical lows but if I buy my properties expecting to pay 5, 6 or 7% they are able to survive any rate fluctuations and consistently produce cashflow. These low rates are not here to stay bank on them being higher and give your portfolio an excellent buffer. Do this with every expense you have related to your investment - build a buffer (see number 1)

4. Never over leverage - Leverage is what makes real estate an incredible investment but if you get too leveraged you're on thin ice. You can easily find investments that will produce well with 80% loan to value. Sure it's great to save some cash and get a 90% or 95% LTV but if rates go up and your mortgage payments are higher than your rental income you'll have some serious trouble with negative cashflow.

5. This too shall pass - You might get wiped out - it does happen but what are you going to do? Give up? Robert Kiyosaki said 9 out of 10 businesses fail. Be prepared to fail and try again. The knowledge you learn in a economic crisis is what makes you an expert. You'll know how to protect yourself in the future. Failure is the best education you can get.

We spent the long weekend in Canmore, AB. It's a beautiful city with a 360 degree view of mountains. I'm sure I've been there before but it's a huge change after 10 years of Nikko, Japan. The MAGNITUDE is incredible. Canada is huge, the Rockie Mountains magnificent.

So size does matter. Whether it's mountains to foothills or a huge portfolio to a few rentals. Certainly my style of management would change if I had less properties to take care of. Now my only hope is blocking parts of the city i.e I only visit NW properties today. This is a huge gas and time saver. Only an emergency would drag me anywhere else.

We are born with only 2 fears in our inherent make up; the fear of falling and the fear of loud noises. Their purpose is to keep you alive by alerting you to danger. All other fears are learned. Fear is often connected to pain e.g. some fear heights because if they fall, they may suffer severe injury or even die upon landing.

Ok, so you're not about to get your leg torn off by a rouge shark and bleed to death on a nameless beach in the tropics. But there are a lot of scary things going on in the world today; not surprisingly, there always have been and always will be. Now, let's break down a few of these fears in relation to investing.

3:AM-Keep-You-Up-at-Night-Pain-in-the Gut-Fears:

MONEY

Losing all your money -Becoming destitute or at least losing what you've built up

having enough money to invest- Scarcity, afraid that you can't get started

Not being able to enjoy retirement -Having to eat cat food not only for breakfast, but also for dinner
health costs -Can't afford to go to the doctor

Stock or Real Estate crash -Have all your savings wiped away

Losing all your money -Being taken advantage of by a smooth criminal

Inflation -Rising costs and taxes are pretty much inevitable

KNOWLEDGE AND EMOTION

Fear of not knowing enough -Afraid you'll make the 'wrong' choice so you do nothing

Fear of taking action -Scared if you do, scared if you don't

Fear of failure- your friends, family and maybe even you will see yourself as a loser if you don't make it

Fear of the market- the economy is awful right now, how can I ever expect to make a profit? A.K.A 'I don't know the market well enough', 'I'll buy at the bottom'

SUCCESS

Fear of succeeding- Fear that you will accomplish all that you set out to, but that you still won't be happy, content, or satisfied once you reach your goal

Fear of losing what you created- your accomplishments can self-destruct at anytime.

Is not what people are going to be saying when they go by our property that just had sod laid. A local Edmonton landscaping company came laid some dead sod, left sod pallets blocking the access to the garage and a pile of junk on the property.

Yes, we paid them for this.

In advance.

And that was our mistake.

How do YOU avoid this mistake?

1. Don't pay any company the full amount until a satisfactory job has been done - give them half or even a partial payment. If they insist on getting paid upfront you should start to wonder about your recourse if things don't end up as planned.

2. Get a reference list of clients and call a couple- Why not. It may take about 1 hour of your time and even if they all give raving reviews people will always tell you their opinion. If a company is reluctant to give references start to ask yourself why. Trust me one hour on the phone is much cheaper than the time and cost to you to rectify shoddy work.

3. Closely monitor the job until done - Drive by every day. That pile of pallets didn't just appear they left them over the time they were working there. You can watch the work progress and make sure all scrap is removed. At any rate you can get to know the people who are working for you for future jobs.

4. Ask around - You'd be surprised how many people will tell you their good and bad experiences. Many people have had contract work done and are willing to "show and tell". People who are satisfied will say so and those that aren't will really say so.

5. Let the world know - Companies like this keep operating because clients are unaware of their bad history. The internet age means most people surf online to find companies locally. When your review comes up or filed complaint you will be saving someone, somewhere some money and some time.

Ripoff Report,
The BBB,
The Complaints Board