My CDs

I've rediscovered all my old CDs. They aren't music albums but 1000's of hours of business leaders, self help, motivational speakers and business gurus.

Right now I'm listening to Robert Kiyosaki. He talks about the velocity of investing how some people go slow and steady while others constantly propel their money to greater rewards.

It made me think of one of the first houses Todd and I bought in Edmonton. It's a suited bungalow in an EXCELLENT area:

Main - 3 bedroom 1 bath
Basement 2 bedroom 1 bath
Beautiful (only an investor or mechanic thinks like this) Double Detached Garage

We bought it in 2005 for $225,000 with $25,000 down payment. We haven't accerated our mortgage and we haven't always gotten the best rates. It's just been slow and steady with this property.

Current specs
Total income $2315/month
Total expenses $1942/month
NET CASH FLOW $373 per month

It's not grand cash flow but that's pretty good. We use a rule of a minimum of $150 a door to be a good rental property.

The best part is the equity and the appreciation over the last 9 years. That house with the suite would sell for $350,000 (modest estimate) in this market. My mortgage balance is $145,000.

We have over $205,000k equity in that house. Of course some say the value could drop, the rents could decrease the sky could fall. They did in 2007 but I still have that house.

I have many outs (ways to leave an investment) with this property.
1. I could sell it
2. I could pay it down and live off income
3. I could give it to my children - an incredible gift
4. I could refinance it  and buy a new investment = two streams of income.
5. I could do nothing

We've done nothing special, just paid the mortgage and  plodded on with this property. Yet the velocity and growth of that initial $25k is phenomenal.

Do you see the value in real estate? Now imagine if you buy 3 or 5?

Edmonton - closed til February. Three tips to get rented.

You may not know it but Edmonton real estate is just as seasonal as a tropical resort. When dead time comes it comes. Vacancies and unsold properties are put on hold until after January. No one moves when it's -20C.

What if you have vacant properties? Two months vacant is two months too long in my opinion, so how do you get your properties rented?

1. Compelling Advertising- In this tight rental market 3br/2ba isn't going to cut it. Sell the sizzle. Get the tenant to see themselves living in their new home (your property). Describe bright sunny rooms, the convenience new appliances bring and the ease of living close to so many amenities. Adjectives are key here.

2. Get Referrals - You know people right? They probably know some people too. Like the Doublemint gum commercial our circle grows infinitely when you include everyone you know. Talk, talk talk about your listing tell everyone you know. Who knows who has a cousin moving from wherever and is looking for a place to rent.

3. Give rebates, bonuses, discounts - If possible don't lower your rent. Offer money back at the end of the lease, half months rent discount up front or help pay for moving costs. In this economy it can be hard for people to come up with a damage deposit and first months rent, especially with the holidays around the corner. Last resort lower your rent but make sure it's not putting you in a negative cash-flow position. That, my friend, is a false economy.

We all get vacancies so let's help each other out!
Good luck and stay rented!