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Victoria
Real Estate Investors Club
Newsletter
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Hi Folks!
I think summer's here 'cause I've already got a sunburn. That feels GOOD!
Our weekends are filling up with great social events of all kinds (marriages, team getaways, birthday parties, travel, etc). Sprinkled amongst those are days of actual work. Big question for me, do I look forward to the work days as much as I do for the social events? Are both fun and enjoyable?
I've spoken with many of you who are in the midst of creating a future where your current job has been phased out and replaced by activities more in line with what you're passionate about. Owning real estate is in your sights 'cause it has the potential to make your (or someone elses) money work hard and create income while you do the things you love.
I applaud your goal-setting and planning! You're taking charge of your life IMO.
My mentors continue to remind me that "the way I do one thing is the way I do everything". Is your work life boring, a means to an end, just putting in time? I think the way you're treating that time is the way you'll end up treating the time you spend being a real estate investor.
So I suggest you get ready to be an investor by ramping up your enthusiasm, effectiveness, attitude in what you're doing now. Take advantage of as many tools, seminars, contacts as you can now to create a fun work life. This will affect the quality of all your future endeveours in a big way IMO.
Hey, are you ready to buy an investment property in Victoria with some free downpayment money? Check the opportunities article below!
How do successful RE investors get there? Come out to the meeting on May 26 and find out! Jean Doucet has just about done it all and wants to share with us. Let him inspire you with his stories. Details below.
There's a small article on western Canada foreclosures at the bottom. For you data folks.
Take care,
Gord Knox
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May Meeting
- Successful Investor Reveals Secrets
How do successful investors get there? What kind of investments make them the most money? What techniques work best for them?
If you knew the answer to those questions I bet you'd be inspired to take more action toward your RE goals.
Our May 26 speaker, Jean Doucet, a successful RE investor from the mainland, will answer those questions for us.
Jean, originally from New Brunswick, arrived in Vancouver in 1994 with
no money and lived on income assistance for his first 8 months.
He joined Vancouver REIN in 1996 and subsequently became a full-time
real estate investor. Since then, Jean has done more than 100 real
estate deals via partnerships, and well over 50 deals on his own. His
activities have earned him more than one million dollars in net assets
and a high sustained cash flow during that time.
Jean has focused on:
wholesale/retail, lease-options, double-closings, assignment of deals
(contract assignment) and joint ventures with like-minded real estate
entrepreneurs. Jean will share
some of his actual deals, showing the real numbers and real net profits
(with some deals exceeding $100,000 in profits!).
He will answer your
questions about what it takes to be a "real" investor and what risks
and rewards are out there! Jean currently lives in New Westminster and
invests primarily in Greater Vancouver and on Vancouver Island, where
he and Cornell Pidruchney work together. Check out his website at: www.webuyhomesbc.com
7 - 9 pm
Executive Eurostar Hotel
3200 Blanchard St.
Victoria
$15 at the door (no charge for annual mbrs)
after-meeting meeting at Red's down the hall
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Keller Williams Realty
323-1095 Mackenzie Ave
Victoria BC V8P 2L5
250-595-3200
david@davidhale.com
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advert
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NANAIMO
CLUB
Next Meeting:
June 2, 2009
Beban Park Rec Centre
2300 Bowen Road
Nanaimo BC
Room 8
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VREIC
JUNE
Meeting
Invest in Saskatchewan!
Real, live, Sask. investors speak.
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| OPPORTUNITIES |
David Hale says:
Opportunity #1
We're selling our Dockside Green condo, but we have found out that to get out of our 5 year term mortgage now,
we have to pay an interest differential penalty which works out to $57,000. The
only way to recover the $57,000 penalty is to buy something else within 90-120
days. Problem is that Home Trust does not do self employed no income
qualification anymore so we as a group of investors with multiple properties
and commission based incomes will not be able to qualify.
Here's the opportunity: We need
someone who can qualify for a revenue type property purchase (house with a
suite) of between $400,000 and $500,000. We would come on title and could supply
the downpayment. This person would preferably be first time buyer or
currently doesn't own other property so they can live at the new property and
we can get in with min downpayment. Call me to find out how this can be win-win for all of us.
Opportunity # 2
A side by side duplex on Jenkins newly renovated both with suites
in the basement. The owners have stated that it could easily be strata titled
at minimum cost because it has been brought up to code. It is currently vacant
because there was a small fire but now it's mostly fixed and owners are willing
to sell at $679,000. There are 2 bedrooms up and 2 bedrooms down on both sides.
Because the suites are illegal the stoves have been removed so the owner says
that $1800 per side at this point is very easy to obtain making $3600 per
month. After some time one could rent the suites out and increase the income as
the inspectors get busy with their normal routines again. I figured at 4.14 %
(Home Trust rate) that a $600,000 mortgage would cost $3200 per month so it
would easily cash flow.
The owners have expressed a willingness to carry some
financing, however I haven't nailed down the terms yet.
David Hale 250-812-7277
Keller Williams Realty
#323-1095 McKenzie Ave.Victoria BC. V8P 2L5
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Subprime mortgages in B.C. and Alberta
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Two provinces have seen a surge in foreclosure proceedings
Foreclosure
proceedings in Alberta have more than doubled in two years, according
to data provided by the Alberta Justice Department - from 2,510 in
2006-2007 to 5,300 in the first 11 months of 2008-2009.
According
to statistics provided by the British Columbia government, the province
has seen a similar surge, with nearly 2,100 foreclosures filed between
April and December of 2008 - more than the 1,900 that were filed in the
entire previous fiscal year.
Despite having
just a share of about 7 per cent of the national market, subprime
lenders in Alberta accounted for 56 per cent of the foreclosures in
2008. In British Columbia, the tiny subprime market laid claim to 42
per cent of the province's 2008 foreclosures. In comparison, Canada's
five largest banks accounted for 33 per cent of the foreclosures in
Alberta in 2008, even though the country's chartered banks account for
about two-thirds of Canada's total outstanding mortgages. (The
remainder of the lenders in the mortgage market are made up of credit
unions, trust companies and insurance firms).
The
Globe and Mail's analysis shows that several cities have an extremely
disproportionate share of subprime lenders who have started foreclosure
proceedings, compared with traditional, prime lenders. Edmonton had 330
foreclosures in the calendar year 2008 - 60 per cent of which were
initiated by subprime lenders. "Oh, it's here. For sure it's here,"
said Larry McTaggart, an Edmonton realtor who is often enlisted to sell
homes for lenders who have foreclosed on properties. "I don't know
where it came from... it's not the Bank of Montreal or the Bank of Nova
Scotia or Toronto-Dominion" Mr. McTaggart said. "It's the 'B' lenders."
The 90,000-person city of Red Deer only had 36 foreclosures in 2008,
but 32 of them were launched by subprime lenders such as Accredited
Home Lenders, Wells Fargo and the subprime lending division of HSBC.
(The
findings are based on data provided by two private companies, British
Columbia's Foreclosurelist.ca and Alberta's Foreclosurescanada.com.
Both companies track foreclosure filings from each province's
respective court systems and sell them to potential investors. They
also advise homeowners who find themselves in default. Both companies
acknowledge that their data collection isn't perfect. Some proceedings
slip through the cracks, and they don't have access to foreclosures
that might have been sealed by the court, but their records are the
best available sample.
The most accurate
numbers reside in the databases of the Alberta Justice Ministry and
B.C. Ministry of the Attorney General, but both departments turned down
The Globe's request for the data. They did provide, however, basic
statistics on the number of foreclosure applications.)
SUBPRIME DEFINED
The
word subprime has created much confusion because many mistakenly
believe that it refers to an interest rate that is below the prime rate
- which would obviously be a less risky and more affordable mortgage.
That is not what the word means. Rather, subprime refers to the credit-worthiness of the borrower.
There
is no standardized definition of the word, but many mortgage experts
interviewed agree that subprime mortgages are best described as loans
that include at least two of the following characteristics: a borrower
with a bad credit history, an interest rate that is significantly
higher than prime lending rates and mortgage values that amount to more
than 80 per cent of the market value of the house.
In
the United States, there was a proliferation of subprime lenders
coinciding with the boom in the real estate market. In 2007, when
thousands of homeowners started defaulting on their mortgages, dozens
of subprime lenders, including one of the largest, New Century
Financial, filed for bankruptcy protection, which ultimately sent the
economy into a tailspin.
GREG MCARTHUR AND JACQUIE MCNISH
From Saturday's Globe and Mail
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