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Victoria Real Estate Investors Club Newsletter
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Hi Folks!
Ok, so it's really raining a lot these days. I'm still in a good mood 'cause, for the most part, I'm warm and dry. Ok, so our property in Nanaimo has a flooded crawl-space (partner is getting good at pumping that out) and I had to get a tarp for a small leak in our house roof that finally revealed itself. This, along with my expectations, shall be repaired ASAP.
The planet's job is to provide us a place to play (learn to get along with each other) and test us (learn to deal with our own wacky beliefs). I see this huge dump of water on us as a test of me and the things I'm responsible for. Also it's a cool reminder of just how much fresh water we have in this beautiful land.
Note the rumblings in the retail RE market in the articles in RE NEWS to the right. There are shifts happening with the listing of properties for sale that both MLS and the larger brokers have control over.
IMO, the current MLS is a wonderfully designed system to keep control of the majority property listings in the hands of real estate agents and their brokers. What if these listings broke free of MLS and an open market ensued? That'd be fun! Of course, the ever-controlling gov't would respond and put it all back 'cause adult Canadians can't be trusted to sell their properties by themselves, they might get hurt and create a mess. I thought I'd moved away from home and out from under the wing of my mamma!
I'm looking forward to the day when the gov't controlled agencies quit treating me like a child and admit that I'm an adult and will act responsibly in our society. Note that there's a movement afoot to make that happen. Look up Robert Menard on youtube, he's a pioneer in that effort. It starts in the courts and in our attitudes.
You'll want to attend the VREIC meeting this month on Tues, Nov. 24. The speaker, Ian Gartshore, of ShoreEnergy.ca will be educating us on the theories and practise of controlling and optimizing the energy used in your properties. Since he spoke in Nanaimo in Oct. 09, I've changed my mind on how I look at and treat all of our properties with respect to heating, cooling, insulating, flushing, etc. Well worth coming out to IMO.
Pls note the investment opportunity below. Someone is going for it in Langford and I'm impressed. One of my mentoring students and his partner recently flipped a mobile home in southern Vanc. Island. Just goes to show ya, there's always deals happening where ever there are people and dwellings. MLS is usually not the source of properties in the investor world IMO.
For Fun I checked out the RE investing game demo mentioned in the news article to the right (Rusty Axe Games). Obviously, I beat the game in no time AND it was pretty neat and instructive. If anyone actually buys the 2.0 version, let me know what your experience is.
I'm still getting calls from folks in Arizona about all the amazing deals there for Canadians. If you are interested let me know and I'll pass them on to you.
NOTE: the November meeting is the last one in 2009 in Victoria. Next meeting Tuesday, January 26, 2010.
There will be one more mid-month breakfast meeting on Dec 12. The Nov 14 breakfast meeting was small AND a lot of great contacts and ideas were batted around. See you on Dec 12 at Brannigan's.
Take Care!
Gord
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Mid-Month
Breakfast
Meeting |
December 12, 2009
Brannigan's
(by the Accent Inn) on
Blanshard at Cloverdale
9:30 am
reserved under
Real Estate Club
networking, conversation, have a few laughs.
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advert
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| Nanaimo Club |
Next meetingTuesday December 1, 2009Speaker: Dale Schuss Randall North Real Estate ServicesTopic: Property ManagementBeban Park Rec Centre2300 Bowen RdRoom 8 (off the breezeway)
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| advert |
Keller Williams Realty
323-1095 Mackenzie Ave
Victoria BC V8P 2L5
250-595-3200
david@davidhale.com
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| Meeting November 24, 2009 - Optimizing Your Property's Enegy Use |
Speaker: Ian Gartshore of Shore Energy Solutions.
Ian has an electronics as well as a human resources
background and has been involved in energy conservation and efficiency
measures all of his adult life. In the last two years he's turned this
into a business. He's been the Chair ESVI Energy Solutions for
Vancouver Island Society (www.esvi.ca,
a largely educational non-profit organisation dedicated to improving
the use of energy for the benefit of the local economies,
affordability, and environmental sustainability aas well as the Chair
of the Harewood Community Centre Co-op in Nanaimo.
His talk will cover two main
subjects: how to reduce costs and how to improve the property (to
increase the rental stability and income, and increase the property
value).
1) reduce costs: for those who pay
for the heating and lighting I will give some tips as to how to upgrade
the building (e.g. lighting) so as to reduce the overhead in a
cost-effective manner
2) improve the property: how upgrading the building can improve the comfort levels and thus the stability and income.
Even for those owners who do not pay for the heat, improving the building efficiency can have a pay-back.
He'll also briefly cover Government incentives: up to 25% back on your investment.
Tuesday November 24, 2009
7 - 9 pm
Comfort Hotel & Suites
3020 Blanshard St
$15 at the door (annual members no charge)
After-meeting meeting down the hall at Redd's
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| OPPORTUNITIES |
Gord does not endorse this opportunity. If you give this person your money and fail to get all the correct contracts in place and end up living with your parents again and come whining to me about your mom's cooking, I'm gonna laugh at you!
Marga Zacharias says:This is my project at 689 Hoffman in Langford.
It is re-zoned to commercial/residential. Commercial on main floor with 4
townhouses above, one is a live/work. This project is ready to be built,
I have all the approvals, except the actual building permit, which will
not take long, because everything required is in place. The total investment
is $1.4 million. I am able to secure $1.0 million but require a further $400k. Therefore I am looking for a partner to supply either the whole amount or a portion. Marga cell:250-514-7819 work: 250-9204247 email: 1margaz@telus.net
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Dangerous Property Manager Contracts - Don't Sign If it Says These Things |
By Monte Lee-Wen
Your relationship with your Property Manager is key to the success of your Commercial Property Investments. This relationship starts with your Contract AND we have found a lot of Property Managers Contracts are heavily weighted in favor of the Property Manager.
These dangerous contracts are often presented as if they are "standard"... Not True. You get what you negotiate. The last thing you want is to be locked into a contract with a poorly performing Property Manager... and no easy way out... OUCH.
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Contract Red Flags:
The One Year Contract
The typical version is a Contract with a one full year term and you cannot replace the Property Manager until the year is up. Never sign a contract with anything more than a 30 day dismissal period.
Termination Fee
Are you kidding. You fire your Property Manager and then you owe them money. Heck, if they performed poorly enough to get fired, they should owe you money.
Lease Signing Bonus paid to the Property Management Company
This is a big conflict of interest. They get paid to do a poor job of Tenant Retention. The higher the turnover, the more fees they make AND the less money you keep.
Right to Represent the Property at the Sale Or First right of refusal to purchase the Property at the Sale
These are an even bigger conflict of interest. If your Property Manager runs the project into the ground and you are forced to sell because the investment failed... they get to purchase or represent the property when you sell. Please... this is a recipe for disaster.
Clauses that limit the Manager's Liability
The Property Manager is at ground level, performing the day-to-day actions of management and maintenance of the Property. They are fully responsible. Your Contract needs to make sure they hold the liability... NOT You.
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What to Always Put Into Your Property Manager Contract:
30 Day notice to terminate the Contract
If you want to change Management Companies, you only need to give your current manager a 30 day notice.
Specific Performance Clauses
If you need to have the 10 fire damaged units in your Apartment Complex rehabbed and ready to rent in 90 days... put that in your Contract with your Property Manager. If they fail to meet this specific performance goal this becomes grounds to get out of your Contract.
Ideally you and your Manager jointly developed this Asset Management Plan, so getting them to agree to be held accountable should be relatively easy.
NOTE:
Even if you have one Property Management Company for your entire portfolio of Properties, make sure you have individual contracts for each property with Property specific performance clauses.
Remember, negotiations occur in all phases of your Commercial Property Investment... not just with the Seller. Make sure you negotiate a Property Management Contract that protects you and your Investors and makes it relatively easy to change Managers if they do not perform.
Here's to your investing success.
Learn the Insider Secrets of Commercial Property Investment from Monte Lee-Wen who has personally purchased over $200M in Commercial Real Estate. CLICK THIS LINK NOW to start your Commercial Real Estate Investing with his 14 page FREE Report "35 Reasons You Should Invest in Commercial Real Estate".
Article Source: author http://EzineArticles.com/?expert=Monte_Lee-Wen article http://EzineArticles.com/?Dangerous-Property-Manager-Contracts---Dont-Sign-If-it-Says-These-Things&id=3244925
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