Edmonton Real Estate Investor

While other countries and continents are on the brink of financial ruin Canada, yes Canada, is becoming an economic superpower fueled by natural resources. Read this:

"Canada is at the beginning of an economic transformation that could see it replace the Middle East as the primary source of oil and gas, first (as it already has) to its largest consumer, the U.S., and then, more importantly, to the rest of the world.

Jeff Rubin, former Chief Economist at CIBC World Markets, wonders if Canada really wants to be an energy superpower, and Neil Reynolds, columnist and former Editor-in-Chief of the Vancouver Sun discusses Alastair Sweeny’s new book, Black Bonanza, and concludes that “Even Canadians don’t comprehend what they’re sitting on."

"The numbers Sweeny quotes are staggering, and while they are more commonly known today, its the revisitation of the realization, that we now live in the best country in the world, that got my attention again. Alberta oil sands contain one trillion barrels of recoverable oil, plus a whopping two trillion more in reserves, thanks to Roger Butler’s innovation of Steam Assisted Gravity Drainage.""

Read more at the Advisor Analyst

This is seriously exciting. It's like The Matrix when Keanu realizes he's naked in a pod of pink goo. Once Canadians realize what we're sitting on and the implications to our future, our finances and advances in environmental technology. They're in for a "waking up naked in pink goo" type eye-opener.

The only problem is how do you take advantage of this knowledge? This might help.

Who can be everywhere at the same time? Little do you know that every rental property you own has a secret legion of protectors just waiting to help you maintain, improve and manage your investment. Who are they? Neighbours.

Your neighbours are your allies. Go talk to them ask them how the property is doing. Are the tenants noisy? Are they having parties? What's going on? Everyone living around your investment has a vested interest in your rental doing well.

Why? Because it's their home, maybe 10, 20 or 30 years of care, mortgage payments and dreams are being affected by yahoo tenants or equity building ones. For them it's serious.

I've experienced this a few times a concerned call often gives me ammo to correct a problem I might not see until the next 4 month inspection. Don't underestimate the power of those extra eyes.

However, make sure you're not asking the neighbour with the mattress and half rebuilt cars on the lawn!

I wish we had StreetAdvisor in Canada....

Snow in June, well almost. That was the name of a famous TV show in Japan too. These sudden changes in the Alberta weather keep you on your toes.

How about the changing market? Well, lots of action lately with multi-units being snapped up within days of being listed. There is a lot of pent up demand from both new and seasoned investors looking for the deals. One of the main reasons is the shift in attitude - folks are feeling more confident. And with confidence, comes improvement in the economy. But beyond there being just an attitudinal driver, you can start to see some of the projects coming back on track.

I know of one $26M gas project that ground is breaking on next month... and that's 2 hours outside of Edmonton.

North Central Edmonton: Cashflowing Tri-Plex In The Mature Area of Prince Charles  

Turbo charge your portfolio. Stylish 6 bedroom 3 bath Tri-Plex. There is one 1100 sqft 3 bedroom upper suite featuring gleaming stained bamboo flooring and bay windows. Separate entry to the two lower suites leads down to an 800 sqft 2 bedroom with plenty of windows and hardwood. The other 700 sqft suite is fully furnished and very stylish. The suites are legal, conforming and have passed safe housing. There is individual laundry up, and shared down. There is also an oversized double detached garage generating extra revenue. These pictures show the detail and care that went into building this home.   

Comes complete with great tenants making this a totally turn-key property for you. Convenient North Central area with easy access to LRT, Downtown and Ring Road. Excellent neighborhood that demands high resale value and rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's vibrant NW center.

Produces $210 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.  Poised for massive growth. These 3 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: 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!

  Purchase price: $415K
Total Investment: $92.6K.
Your Estimated 5 Year Profit $51K.
Your pre-tax Total ROI is 55% or 11% per year + $210
Cash Flow in Your Pocket Every Month  “Get into action and realize secure, long-term profits”   Already producing a great RETURN.

Visit HERE for the full FEATURE sheet and call 1-888-780-5940 to get started.

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

  -Please remember: All investments carry RISK. Be sure to seek your own independent legal advice-

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.   The time IS now...

  "Waiting is painful. Forgetting is painful. But not knowing which to do is the worse kind of suffering." -Paulo Coelho  

Kind Regards,  Todd and Danielle Millar

Brian was one of my first international partners. He'd been based in Japan for four years working for a large software company from the U.S. We met on the 42nd floor of the Tokyo Park Hyatt , where the view was so stunning you'd think the city never ended, during a small international investment seminar where I was one of the guest speakers. The event was real estate specific and the primary content was targeted at international property purchases. I hadn't yet presented and was taking in the other speakers, many of whom were selling sunsets, seascapes and glitzy downtown London high rises.

Between delicate bites of bluefin tuna—which arrived fresh from Tsukiji market that morning—and sips of Shizuoka iced matcha, Brian asked me what I thought about the event. He commented that the Thailand land offer looked good and asked me my opinion on whether it was a "good deal" or not. I wasn't surprised by Brian's direct question. But what does shock me is how arbitrarily some folks can make their investment decisions.

I replied in a lighthearted way that spending my money on sunsets and sandy beaches is what I do when I'm on holiday, not when I plan and weigh out an investment option. Sunsets sizzle, and when we imagine the lifestyle associated with them, emotion takes hold and reason leaves the room.

Now, that's not to say there aren't great places to invest that are also visually appealing paradises; there are. However, they require the same kind of homework that I do on my property investments, target towns and provinces.

Read more - why sunsets don't equal big cheques

We went to the Stanley L. Milner Library the other day filled with slight trepidation as a couple young girls had been attacked there less than a month before. We both commented on how beautiful and citizen friendly the downtown area would be if it could be "taken back".

It looks like the City of Edmonton and ProCura Real Estate is ready to do just that with plans to build a 708 unit Mayfair village in the downtown area.

"A lot of the things we're doing here can be done elsewhere. The game changer for Edmonton is about downtown, and Mayfair Village is a component of that. If we can change downtown, we can change Edmonton forever, and for the better." Randy Ferguson, ProCura's Edmonton-based COO Read More

Programs like REACH will also work to taking downtown and giving it back to law abiding citizens.

Slowly and surely the change to downtown Edmonton is coming. Soon Edmonton will have a downtown worthy of it's economic prowess, growing wealth and innovative future.

Todd went to the Free Rich Dad "How to Get Rich in Alberta" Event. The event which has suffered bad reviews, investigations and unfortunate sales tactics seemed like a good place to network.

Overall his impression was that the event skims over a lot of ways to get wealthy but doesn't support with any real meat. It's all sizzle. Which is good if you want to keep people coming back for more but doesn't work for those who are looking for real information. The host, Darren Weeks, an Edmonton multi-millionaire, was partially aggressive and a little condescending - but that's what wealthy are like right? At least it's the way we expect them to be.

We got a follow up direct marketing letter with some tips like; build your elevator speech, find a mentor and get a business card. Three excellent pieces of advice if you have a clear goal in mind to apply them too.

So the final rating? These seminars are not as evil as many would have you think, at least this one wasn't, however this event alone will in no way get you rich in Alberta or anywhere else.

Oh and networking time ZERO they were herded around and only got a three minute break - come to think of it the perfect amount of time to use your elevator speech....

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.

One thing about Albertans is don't mess around with their oilsands. I listen to CBC a lot and it seems like a week doesn't go by without some call in debate about the oilsands. Whether the topic is their impact environmentally, economically or aesthetically there are bound to be some pretty heated exchanges. Makes for good radio!

I found this on the web. You can see the oilsands deposits, find environmental stations like this or like at development, historical sites and much more.

Two publication's outlooks on the future of the oilsands:

Forum showcases benefits of Alberta Oilsands - "Alberta’s oil sands represent not only a major North American source of energy and economic growth, but also an important laboratory for environmental management technologies, participants at a Washington forum agreed.

“They are a source of strategic value. Even with today’s economic conditions, oil sands projects are proceeding,” observed Alberta Premier Edward M. Stelmach in remarks opening the North American Energy Summit at the Canadian embassy on May 6. “They also create US jobs.”

The province was the first North American government to set a price ($15/ton) on carbon emissions from large manufacturers, and it is using the revenue to finance energy efficiency and renewable energy research, he continued. “We have real world experience,” Stelmach said. “We’ve done a lot of good work in Alberta, and we want the world to know it.”

Gulf's pain oilsands gain - "Should political pressure and public anger translate into extensive offshore drilling rules, the landlocked oil sands could become financially favourable, said Brad MacKay, a professor in the University of Edinburgh Business School's MBA program."

  I attended the CIM (Canadian Institute of mining, metallurgy and petroleum) 2010 event in Vancouver last week. The 3 days were packed with various workshops, hands on exhibits and plenty of industry related booths. There were many students from SFU as well as other schools across Canada looking to meet with job recruiters.   

Many businesses working in the energy field had a tough 2008/2009 but were gearing up for 2010 onward. I saw a presentation from De Beers. They opened their first diamond mine outside of Africa in the NWT, 2008. They also operate the Victor mine (diamonds) in Ontario. There are plans for another Western project in the works too.   

The size and scale of the mining industry in Northern BC and, to a lesser degree, Alberta is staggering. I was impressed with sub industries involved in supporting these and other large scale operations; roads/infrastructure, electrical, pneumatic machinery, piping, health services, administration, transport, relocation, entertainment and the list goes on.   

Another interesting workshop was one made by mining families and the (positive) impact that mines have within the Northern communities. It is interesting stuff and having attended the show I have a better understanding of how much long-term impact and growth the multi-million dollar projects (and billion dollar ones) spin off into our economy.

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.   The time IS now...

  "Thinking easy, acting is difficult, and to put one's thoughts into action is the most difficult thing in the world." - Johann Wolfgang von Goethe   

Kind Regards,  
Todd and Danielle Millar

I haven't posted for a while my goal this year of a post a day will probably end with 5 a day to catch up in November and December. I do have to cut myself some slack because I've been busy with other things like this,looking after this and managing these.

One of the saddest things for me is the trouble in Thailand. If you've ever spent any time there you will know that they are the most peaceful, friendly and lovely people. I've been to Thailand many times and absolutely love it there. Knowing how the economy depends on tourism I can only imagine how tough life has become for Thais.

So as far as conflict resolution goes I've been taking a fantastic course at the LTAB. The best defense against conflict in property management is knowing the rules inside and out. Our great teacher Michelle and a lot of excellent information have put some powerful tools in my PM belt.

Find out more about these must have courses by calling here

Uncertainty about taxes isn't new to anyone. What if you're missing out on a lot of tax breaks just because you don't know about them?

"Meanwhile, a separate survey of taxpayers highlighted that many Canadians don’t fully understand their personal tax situation.

About nine in 10 don’t understand how recent changes to the federal budget impact their personal tax situation, according to the survey carried out for BMO Nesbitt Burns.

Almost 40% aren’t confident they are taking advantage of all of the tax incentives available to them, while three-quarters fail to take tax into account every time they make an investment, it said.

"The results clearly indicate that many Canadians do not fully understand their personal tax situation," said John Waters, manager of tax planning at BMO Nesbitt Burns. "People have the opportunity to pay less tax if they take the time to understand the basics and seek advice when needed.” Edmonton Sun

Canadaonline.about.com has a great resource section where you can find a lot of information on Canadian taxes.

Are you thinking of investing in your future? If you plan to use real estate as the vehicle to get to a place called "financial freedom" then you need Peter Kinch's 5 Year Action Plan.

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My apologies if you experienced any delay in receiving the last newsletter. Our server was experience some kind of midlife cyber crisis and was acting a little tetchy. In fact, it has now reverted to our old back up site which doesn't have the new, fresh, updated 2009/10 files on it. Oh well. Even servers want to relive their youth.

I've been busy these last few weeks compiling data about Oil Sands and infrastructure projects for the Northern quadrant of Alberta. As a matter of fact, I took a trip to a small town on the Alberta side of the Saskatchewan border.

These sleepy little towns have a strong pulse as suppliers/distributors to the Oil Sands work stations. What I discovered was that business is up, way up. The Northern heart is pumping.

Last year was one of the roughest, but not without strides being made in the spirit of refocus. I'll be in Vancouver the week after next attending the Canadian mining show. If you want to study the economy, learn about the people, the economic drivers and the real direction of it - get out there and experience it.

Stay tuned for some real, on the ground, muddy boot research from someone who is out in the field and can tell you exactly why (or why not) that little rental house is worth buying. All of my recent and ongoing study shows that the acres of diamonds are still right here in your Edmonton backyard.

Grab your shovel! or Grab this bi-monthly newsletter for great tips on Alberta Real Estate Investments.

Location, Location, Location! It is important, and our move back to Canada attests that simple fact. Even when your team is firing on all cylinders nothing beats the opportunity of speaking with a neighbor on the corner or meeting someone new in the park. Not only do you expand your network and make new friends, you're in a powerful position to be a problem solver and pick up some new properties.

  In the last week I've viewed 6 properties and have made offers on 2. Yesterday I found a 1950's bungalow listed FSBO a few blocks from my house. This seller's listing was a simple sign stuck in the front lawn - nothing online or in the paper. This property has potential for a suite downstairs and is in an easily rentable location.

  My team is trained to source out these kinds of deals as well, but everyone has their own niche, area and target. With eyes open and ears tuned in, we're able to attract that extra little bit of sweet deals. You're involved in that too. You're either benefiting as a partner and sharing in the profits or perhaps you have a friend of a friend that needs to sell in Edmonton. Give us a call. We can offer them and you the help needed.   

Edmonton's economy is stamping its big boots forward. Even though we're still in the 'W' for the next while, there is a definite, positive turn forward. Edmonton and Calgary will show the highest growth in Canada for the 2011-2014 period. Calgary at 4.4% and Edmonton at 4.3% which are very healthy numbers. Another great thing about living back in Edmonton is the 8:45PM sunsets! Great way to maximize your day.

Chris Thorman, who blogs about programs for property managers, recently sent me an article about What to Consider When Hiring a Property Management Company.

Chris touched upon both self-management of property and outsourcing the management of your property. Here's a preview:

Deciding when to outsource and which company to hire is one of the most important business decisions a property owner can make. Choose wisely, and an owner will be rewarded with the peace of mind that comes with responsible property management. Choose incorrectly, and an owner will be working harder after hiring a property management company.

Whether an owner has one or one hundred properties, it’s important to consider whether or not they’re prepared to hire a property management company. Handing over the management of property is a major decision. Before making that choice, owners will want to make sure they understand the following:
• The implications of self-owned management;
• The pros of outsourcing management to a third party;
• The corresponding cons; and,
• The alternatives to outsourcing.
You can read all of Chris' article at his blog.

Movie maker James Cameron today stated that the Alberta Oilsands were a black eye on Canada's environmental record.

Seems like everyone in Hollywood has something to say or has a cause to champion and is seemingly the expert on something or the other.

Well Terminator was ok I guess.

One caller on CBC today said that James Cameron's plastic DVD cases are filling landfills and will take millions of years to breakdown. Talk about the not seeing the log in your own eye...

Anyway it's Earth Day why not sell some DVDs with attention drawing statements. I'd like to see him make a movie using solar and wind power.

The best comment yet:
"I'd love to see wind power lubricate the engine in my car."

When you read that Albertans are more entrepreneurial than other Canadians it's an understatement. The spirit of owning a building your own company is alive and apparent all around the city and province.

Whenever I leave my house I see truck after pick-up after half-ton pulling trailers with a variety of company names on them. All obviously small but making it in a slew of very specialized fields.

It's this spirit that keeps Alberta's economy leading the nation.

This article from The Financial Post will ease the worry lines out of those riding the variable rate. It looks like at least another 6 to 8 months of low rates and big savings for home owners and investors.

"With the Canadian economy doing surprisingly well over the past six months, many see higher interest rates from the Bank of Canada in the not so distant future, but according to a report released Thursday from CIBC's chief economist Avery Shenfeld, rates are likely to remain at a very low 2.5% through to 2011.

In CIBC World Markets' latest Global Positioning Strategy report, Mr. Shenfeld lists several reasons for Bank of Canada Governor Mark Carney to keep interest rates subdued after July. He points out that the U.S. will probably have a more gradual approach to raising rates and if Canada gets too far ahead, that could send the Canadian dollar soaring."

So enjoy it while it last - if you use your smarts and bank the difference in what you would have paid at a higher rate you might have quite a lot put away for a rainy day.

The Japanese have a saying "mei ga ippai" the literal translation is my eyes are full, the nuance would equate to "I've got a lot on my hands".

My eyes have been full for the last 2 weeks. An international move with a baby and 10 years of memories in a boat floating across the pacific. The funny thing is we did it like the proverbial band-aid. In fact when we left our little house we drove away without even looking back.

By all accounts the Alberta economy is set to lead the nation and the world again. I can tell you being on the ground here is like being on the back of a racehorse that is at the gate and primed to win the race. People are restless and ready to get back to work, gears are waiting to be turned and millions are waiting to be made. Oh wait it's Alberta - make that BILLIONS.

Enough of this recession! We're back and ready to rock. Who's coming for the ride?