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Victoria Real Estate Investors Club Newsletter
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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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Nanaimo October Club Meeting
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Ian Gartshore talking on
Optimizing the Energy Use of Your Properties
Oct 6, 7 pm $10 at the door
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Hi Folks, We had a wonderful motorcycle trip the first week in September. The scenery in Washington (along the roads I like) is amazing. King-size bed, spa tub, fireplace and wine in the evenings is good too! The Trail West motel in Grand Coulee, so-so. We're travelling again from the 21st to the 28th (finally getting some vacation time in this year!) on a wedding cruise and wine research trip. Vanc. to LA, car to Healdsburg (Sonoma Valley) then SFO to YYJ. So, you might wonder who watches our properties while we're travelling? On the second trip that person is coming with us! The sharpest tool in my toolbox is used in this case. My network. When my investor and life friend Ash Knightley is around, he's perfect as a backup (and I return that favour whenever he asks) 'cause he owns lots of suites and likes to fix 'em himself (like me). Today I had to call a friend "out of the blue" and ask to give his phone number to my tenants while we're cruising/wining. Chris's answer - "of course". We sometimes don't talk to each other for a year and yet the quality of our interactions has always been mutual respect and support. You know, overtly caring about the other person. The bedrock of a quality relationship IMO. I cleaned and waterproofed the big, new deck on our house. I've never done that before. What to do? Use The Network! I went to Rona (got a discount card by joining ROMS-BC) at 2pm on a weekday (nobody around then), went to the paint desk and said "I've got this big deck to stain, what do I do?". Three people helped me as I kept asking questions until I knew exactly what to do. I felt cared for, excited and happy when I got home. The deck looks great and I've got a new sense of accomplishment. I've previewed a book (will read later) which appeals to my sense of what the RE market is doing of late. It's called Emerging Real Estate Markets by David Lindahl. What it apparantly has is an explanation of the fundamental cycles that RE markets go thru as they are affected by economic ups and downs and the best way to take advantage of them. It is oriented to the US yet I think it is still relevant to Canadian RE investors. Check suggested reading at the club website here for a link to Amazon.ca. As promised, Dale Schuss of RandallNorth Real Estate Services will speak at the meeting this month. Great Property Management education on Sept 29th, please join us! See details below. Ozzie Jurock's Outlook 2010 is on this Saturday. We have other plans AND if you still want to go call/email me if you want help contacting others to share a ride over. Take care,
Gord Knox
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September 29 Meeting
THE VALUE OF PROFESSIONAL PROPERTY MANAGEMENT - SELF MANAGEMENT CAN COST YOU!
Dale Schuss of Randall North will give us the professional property manager's viewpoint on hiring someone to deal with tenant and property issues. Topics will be:
- Why Investors Self-Manage
- Third Party Property Managemant - Beginnings
- Development of the Property Management Industry
- The Mature Industry - 3rd Party Property Management
- Property Management Now
Tuesday September 29, 2009 7 - 9 pm Comfort Inn 3020 Blanshard St
$15 at the door (annual members no charge)
After-meeting meeting down the hall at Redd's
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| Education for Landlords
I'm a believer in getting education in my field of activity so I can be more effective and efficient. Ok, I don't always get the education ahead of time AND sometimes it's better to act first, learn later.
The Rental Owners and Managers Society of BC is putting on some great seminars in the upcoming months. I HIGHLY RECOMMEND you attend these if the titles are intriguing to you and you own or plan to own rental properties.
Tips & Traps Part I: 9am-1pm, Sept 8,19 Oct 6 Nov 5,7, $25+gst
Tips & Traps Part II: 9am-1pm, Sept 24 Oct 8,17 Nov 17 Dec 5, $25+gst
Ending Tenancies: 9am-1pm, $40+gst, Wed Sept 16
Detecting Drug Operations: 11:30am-1:30pm, $40+gst, Wed Oct 4
Direct Request w/ Res. Tenancy Branch: 9am-11am, $25+gst, Tues Oct 27
Tell 'em Gord sent you.
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The Misconception About Zero Vacancy Rates By James Kobzeff
During their real estate analysis of rental property, regardless of what real estate investment software is being used, the tendency of some real estate agents and investors is to use the vacancy rate the owner has been enjoying during his or her tenure as landlord.
For example, if the owner of an apartment complex currently for sale is reporting a zero (or very low) vacancy rate, the tendency for most is simply to take the owner at his or her word and plug that vacancy rate into their real estate analysis. (I can't count the number of property analysis presentations I've seen where a listing agent boasted of a zero or unrealistic vacancy rate on a rental property they were marketing).
But this is not an accurate way for any analyst or buyer to measure the property's income stream. Foremost, because the vacancy rate the current owner was able to maintain for his or her property does not necessarily reflect what a new owner might inherit.
The current owner, for instance, might have been charging the tenants yesterday's rents-rents below what similar rental properties are charging today-and therefore the explanation why the building has remained full.
Or, the current owner might have the units filled with friends or relatives who might vacate the building once the property is sold and changes ownership.
Or, the current owner is a soft touch who has been willing to tolerate late payments and/or look the other way if the tenant created a disturbance or other issue that might have otherwise resulted in an eviction of the tenant.
In cases like these, the new landlord might be disappointed to discover that once rents are raised or tenant policies are more strictly enforced that tenants will vacate, leaving the new owner holding the bag on vacant units and less-than-desirable cash flows.
Here's the bottom line. Real estate investors must always be suspect when a rental property owner reports zero or unrealistic vacancy rates, and when conducting their own real estate analysis must always use at least a five percent vacancy rate (or higher if the market indicates it). It just makes for smart real estate investing.
About the Author
James Kobzeff is the developer of ProAPOD - popular real estate investment software solutions since 2000. Create rental property cash flow, rate of return, and profitability analysis and presentations in minutes! Fast, easy, and concise. Learn more at = http://www.proapod.com
Article Source: http://EzineArticles.com/?The-Misconception-About-Zero-Vacancy-Rates&id=2909449
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Opportunities
Please check these investment opportunities out thoroughly before handing over your money! I'll be sad if you loose all your money, end up living in a shopping cart and eventually spend time in jail AND while visiting you there I will say "I told you to research that stuff!!"
Eric Gant (Nanaimo member) says:
Greetings!
If you or someone you know want to invest in the United
States, we have a current opportunity with the following details:
CASH INVESTMENT US$30,000 (on or before September 26
before this goes public)
Annual Rate of Return 15 - 17%
Monthly Positive Cash Flow - Between US$400 - $500
Market value of the property - Between US$40,000 -
$50,000
US average appreciation rate - 5%
Let us know if you want to do a joint venture (JV) and we
can send a Potential for JV Relationship Questionnaire. Feel free to call us at
250-331-0486 or 250-334-9562.
Happy Investing,
Lourdes Elardo-Gant & Eric Gant, ewgant@telus.net
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