Fastrack your investing - What to buy

Todd and I were happy to receive our Platinum pin last year from REIN it was a goal we've been working towards for about 7 years.

We've come to a place where we know so clearly the kind of properties that we purchase that we can refine our searches so precisely that the only properties brought to us are those that have already passed a lot of screening.

Cashflow Gold

1. Half duplexes with suites - super low cash entry points and incredible cash flow.  Always with a garage. Tenants split utilities and share laundry. This is the income from one of our properties:
Main - $1050
Basement - $750
Garage - $150
That's $1950 a month.

2. Suited bunglows - I have houses that produce $2450 in rental income, this example is $2300. Tenants take care of the utilities and share laundry. We don't buy houses to put in suites because the codes and permits are very strict. It's much easier to buy a place with an existing suite and reno it to be conforming.  For example new suites need 2 furnaces existing suites may not.

3. Multiplex Unit - Three or four suited units. Really good cashflow. Up and down suites on each side and one laundry. Tenants take care of utilities. We get these all the time here look at that Cashflow - $485 a month after every expense ( I don't mean only PIT. We're talking taxes, insurance, PM and 12% Repair Maintenance and Vacancy reserve) is very, very good.


We don't buy:

1. Condos or townhouses - Although these units are a low price point you may have condo fees that can increase. We've had condo fees almost double. Never mind the cursed  "special Assesment". The worst situation we've had was a $35,000 assessment PER UNIT- were everybody lawyer-ed up and the condo managers were using our fees to pay for their lawyers! Never mind the bylaws on tenanting and pets. Read More Condo HORROR

2. Pre-builds - not even investing. What are you buying???

3. Single Family Homes - What?  A house is a good source of revenue but why have only one source of income? You lose a tenant and that's it. There is no income coming in from that property.  We don't buy anything without a suite and a single or double garage. That makes three sources of income.

Go Take A Look

A good way to see what is fueling the Alberta economy is to visit the Oilsands Tradeshow in Edmonton is to go to the oilsands tradeshow.

"Widely seen as a future driver of the global economy,
oil sands development sits front and centre on the global stage. This year's Oil Sands
Trade Show & Conference launches at a significant time for oil sands and heavy oil
professionals as they assemble in Edmonton to explore innovative ways to
drive environmentally sustainable energy," said Wes Scott, Event Director, dmg
world media.

Green technology and careers feature at the event. For more information and events schedule check here HERE IF you hurry you can still get a free pass by the end of today (you must be in the oilsands industry to obtain a free pass).

 Exhibition Hours:

  Tuesday, September 23:      10:00 a.m. to 6:00 p.m.
  Wednesday, September 24:    10:00 a.m. to 5:00 p.m.

Edmonton Is Still A Deal

You wouldn't think so with all the negative news and complaining that goes on but compared to other major Canadian centers Edmonton is a bargain for housing and cost of living.

"With health-care premiums being eliminated next year in the latest Alberta budget, Albertans, new and established, have one more reason to feel they live in one of the most economical areas of the country. Housing prices have softened a little in the past few months, but recent figures show the average home in Edmonton is selling for $353,000. According to MLS listings, in Greater Vancouver a similar home sells for $581,000 and in Toronto, homeowners are paying $366,000. Calgary is considerably higher at $436,000. Rents vary widely, too, with Vancouver advertising one-bedroom apartments at $1,500 a month and up, and Toronto offering a similar suite for $1,250 plus utilities. Meanwhile in Edmonton, a one-bedroom apartment just west of downtown can be obtained for $895 per month on a one-year lease. When you consider the province has no sales tax and an annual economic growth rate of 5.5 percent, Edmonton continues to attract Canadians from all over the country. And the outlook is promising as projects worth billions of dollars are being planned in northern Alberta, which will keep the area in the centre of economic development. Everything considered, it’s a pretty economical city, and combined with great entertainment at more than 30 festivals a year, wonderful sports facilities, and almost-unlimited employment opportunities, it’s a great place to live and work, too." Heather Andrews Miller For Metro Edmonton

Oh Look, Someone Else Discovered Alberta!

This great nugget is from www.marketwatch.com:

"A boom of unprecedented dimensions is sweeping Canada's spectacularly scenic western province of Alberta, the Texas-sized territory with a population of 3 million that is home to a pair of world-class cities -- Calgary (population 1.2 million) and Edmonton (population 1.1 million)." Marshall Loeb, Market Watch

It doesn't matter what the Edmonton property market does in the short term because all the international investors who are coming to Alberta, Canada are looking at the long-term. That is how the "strong hands" do it. For more information on Alberta Oilsands click here

But I leave you with this:

"Canada has rather rapidly become the largest supplier of oil to the U.S. Alberta is producing more than 1 million barrels of so-called synthetic oil a day, and the province is sitting atop the largest petroleum deposit outside the Arabian Peninsula (as much as 300 billion recoverable barrels).

As a result, the economy of Alberta since 2002 has been growing an average 12.2% annually. That's not far from China's average, 14.8 %. In the past decade, Alberta's per-capita GDP has almost doubled, to $66,000.

Demand for labor is so intense that Alberta has basically run out of people. Fast-food emporiums, for example, are closing down because managers cannot find folks willing to work for their modest wages." Read More

SEO Rapper - Great Advice and Presentation

The SEO Rapper or Poetic Prophet great advice and excellent presentation.

This Is A Good Strategy For Any Investment

This article is geared to stocks and day trading but I think it applies to real estate as well.

"The pros talk about nervous, quick-on-the-trigger traders as the "weak hands" in the market. But the nervousness is really just human nature. It isn't easy to hold on to an investment that's down, even if it was up for several years. When the markets are roiling, many investors panic and sell. And that's exactly the wrong approach.

When the same professionals mention "strong hands," they are talking about investors with a longer time horizon. These savvy investors swoop in when everything is beaten down, acquiring shares at bargain prices. They ignore short declines and stick around to enjoy the above-average returns that will follow eventually." MSN Finance