Nanaimo Real Estate Investors Club
Newsletter

February 2009
RE NEWS
Victoria Club
March 31 Meeting

Get and Keep
Quality Tenants

Al Kemp,
ROMS-BC
Marv Steier,
Tenant Verification Services

March 31, 2009
Executive Eurostar Hotel
3200 Blanshard
7 - 9 pm
$20 at the door
Wealth By Design Expo
Saturday, March 7, 2009

SANDMAN HOTEL

2852 Dougles St. Victoria
10 am to 4 p.m.
(doors open at 9:30 a.m.)
FREE with pre-registration
admin@wealthbydesign.com
250-294-7925

Details here
Advert

Layth Matthews
250-591-3333
layth@ratemiser.ca

Rate Miser Logo

Hi Folks!

Things are changing daily in this part of the world.

My trusted news sources (my network of close friends) have been telling me about the the upcoming effects of the "financial crisis". The amount of foreclosures in the U.S. is staggering. The opportunities for RE investors are boundless, unless the crisis has affected their borrowing power and/or equity positions normally used for investing. Precious metals (gold, silver) are being touted as a hedge against falling currency values (and perhaps as currency if our economy totally collapses). Propping up the economy appears to have got the full attention of politicians. Of course, my news sources continue to send me jokes as well. This reality is really quite funny, if not taken too seriously.

I don't think we can predict the outcome of this "correction". The potential for a fear-based, mass reaction is high right now. Maybe not panic in the streets. Panic in the stock market or a run on the banks seem possible. I want that all of you have positioned yourself to survive and perhaps thrive during these changing times. Maybe it's a good time to hold off on making big moves, re-group, invest in some education both from an investing/business perspective and personally.

Check out iLearningGlobal.tv. It's a new way to get at focused training by well-know and inspirational speakers on a myriad of topics. Denise and I are going to the grand opening conference in Las Vegas in mid-March. There's even a program specifically aimed at assisting small businesses to get access to the most current and up-to-date education that can affect their success, all through the web. We continue to invest in ourselves and encourage you to do the same.

The Victoria REI club's March 31, 2009 meeting will feature 2 speakers on the topic of "Getting and Keeping Quality Tenants". The speakers will their expert knowledge and experience on the one part of RE investing where it's not about running the numbers or studying trends, it's about people. Might be worth the trip down for all you landlords or folks with suites or those getting ready to take that on. Details to the left.

Wealth By Design have opened up their Expo which follows Money Matters Bootcamp to everyone. This time they've got new speakers, new opportunities, lots of booths and charge $0 at the door, if you pre-register. Details to the left.

See you at the NREIC meeting on March 3, 2009 for an inspiring talk from Evolve Investment Group on their Ethical Investing system. Gabe and Drew have been studying many, many investing opportunities the last while and have noticed some interesting trends. They'd like to share their findings and their commitment to assisting us to get what we really need to evaluate our investments. See article below.

Gord Knox
 
NREIC March 3, 2009 Meeting

Evolve Investment Group's Drew Betts and Gabe Pavda are still evolving.

Along the way they've studied and learned what they consider to be a better system of approaching any kind of investment.

They say "In a perfect world investments would be simple and easy to understand. Investment companies would clearly disclose all the facts, allowing us to make informed decisions. And they would manage our investments in good faith, with our best interests at heart. Unfortunately, this is simply not the case."

Their fundamentals:
  • Exit Strategy
  • Profit
  • Security & Transparency
  • Track Record
  • Investment Manager Incentives
  • Business Plan
  • Contribution
They've offered to share this strategy personally at our next meeting.

Tuesday, March 3, 2009

Beban Park Rec Centre
2300 Bowen Road
Room 8 (enter off the breezeway on the right)
$10 at the door
7 - 9 pm
 
Private Money Lenders
From my friends at CanadaREIC.com...

Finding a private money lender is an essential part of any real estate investor's business. In the old days (pre 2006) you could easily get a mortgage or even hard money loan simply by showing up in the lenders office and filling out an application. If you could walk and talk you qualified for a loan.
But today in the post credit-bubble market those days are over. Getting money for your real estate investing business is much more difficult and likely to get even more difficult as the credit markets sort things out. So how do you get money for your real estate investment business?
 
The answer is a private money lender.

One of the keys to finding a good private money lender is determining if they have similar goals and objectives as yours. You need to understand what they are trying to achieve and if your private lending program fits their needs. For example, if the private money lender wants an investment for a 10 year period, but you plan on doing quick flips every 6 months, it will not be a good long-term relationship. You and your private money lender need to have similar goals for a good long-term relationship that will result in repeat business.

So how do you determine if you and the potential private money lender have similar goals. You need to discuss your plan and ask questions similar to a job interview. We would recommend a series of questions similar to those listed below. Obviously, you can modified these questions to fit your personality, but the information you get will go a long way in determining if this is a person you want to do business with.

Important Questions to Ask
  • How much do you have in liquid funds?
  • Do you have other monies you might want to consider for an investment program that pays 9% to 15% and secured by local real estate?
  • What type of investments are you in right now?
  • How much are they making on your current investments?
  • How long do you want your money invested for and do you have plans coming up that will require your principal back?
  • How available is your money or is it tied up in investments that are not readily accessible?
  • Are you a "Qualified Investor" (person must either have a net worth of about a million dollars or have an annual income in excess of $200,000)
  • Do you know anything about real estate investing? When would like to start investing?
 
Asking these questions will flush out how close your goals are and will foster a good long-term relationship.