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Victoria
Real Estate Investors Club
Newsletter
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 Hi Folks! Changes are upon us. New mortgage rules, potential new MLS usage, new book from Don Campbell, new high-rise coming in Colwood, and most important - spring weather is finally here. Let the lawn mowing begin! Most of the above are outlined in the news items I've listed to the right in RE NEWS. There's a bit of education in all of the articles. The last paragraph of "most-hated Realtor" article nicley sums up one of many RE investors wishes. Give 'em all a quick read. We had lunch with our lawyer the other day and we asked him "what's your take on the new HST?". His answer, summarized, was "it'll be $167 more out of pocket per month for the average BC citizen". I encourage you to find out who's canvassing your area and arrange to physically sign the " fight the HST" petition. Online petitions have very little effect. Note that next month's speaker will be revealing some cool info on changes in Colwood. If you weren't at the Victoria Real Estate Wealth Expo then next month's talk is mandatory. Adam Gant from League Assets has news you gotta hear. My friend Annette in Nanaimo is selling off her RE holdings and has a For Sale ad at the bottom of this newsletter for a commercial property on Bowen Road. Check it out. Next Tuesday' meeting will feature Dwayne Sequeira. He wants to give us a tune-up so we are better communicators as RE investors. See article below. If you took advantage of Rick Hoogendoorns method to release the brake on achieving your goals (you did contact him didn't you?) then this is a natural follow-on to being more effective in your day-to-day dealings with others. If you didn't take advantage of Rick's offering, what are you waiting for? Take Care,
Gord Knox
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| Meeting Tuesday April 27, 2010
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Speaker: Dwayne Sequeira says:
Are you ready to
become a WAY,WAY,WAY more effective realestate investor?
In my hypnosis
training, I learned that human beings respond to certain words, how they
are said, and their specific order. When you string those certain words in
sequences, you can make people respond in a predictable way. When you can
predict what people will say, you have Power! These certain words and
sequences are called scripts!
You're using scripts right now. There are scripts that you speak and some just
go through your mind silently.
Its what you think and say every time you're in a certain sitiuation. You may know that you're using them or you may not. They may be effective or inneffective, you decide.
Have you ever said something that got a different response than what you were
looking for? Have you ever avoided making real estate calls or not answered a call because
you were worried about what to say? Have you ever felt frozen or felt fear when dealing with professionals in
the real estate industry? Then you now need better scripts, dont you?
Do want to know what I found out when I studied all the Successful Real Estate
investors? They all had succesful scripts! In fact many of them were almost
identical!
In Real Estate Investing, you can create Xtreme posture and control to attract
and create Amazing deals!
Are you now ready to take control of your conversations?
Scripts are the easiest, most effective way to move someone to action. Come out to learn why creating and using scripts could turn your real estate
investing career into your dream business..
Comfort Hotel
3020 Blanshard St
Victoria BC
7 - 9 pm
$15 at the door (no charge for annual mbrs)
after-meeting meeting at Redd's down the hall
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May 25
VREIC Meeting
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Colwood Corners Development
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Ad
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HOLMES CONSTRUCTION
250-508-7032
250-588-4684
New Constr, Renovations,
Retrofit Old Windows with Thermal Units,
Project Management and Consulting
Serving the Island since 1982 |
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| BC Foreclosure Process
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The foreclosure process in British Columbia is controlled
by the BC Supreme Court. What it means to the home owners is that each step of
the foreclosure process has to be approved by the Supreme
Court including when to start selling, the purchase price, the terms of sale,
and any commission paid.
This article described the process from a homeowner point of view. As
an investor I find it very helpful to be able to provide useful information to
home owners that are facing foreclosure. Not only am I able to help them but
this also a great way to build trust.
Following are the main steps of the foreclosure process as I understand
them:
If you stop paying the
mortgage, you will initially get a letter from the bank or maybe even a
phone call. The bank is making sure this is not a simple error of some
sort and is giving you a little while to fix the problem.
After 2~3 months you will
receive a letter from the bank asking you to pay the arrears in full
before a certain date and informing you that a lawyer will be hired to
start foreclosure proceedings if you do not.
If you do not pay the arrears
as required, the lender will ask a lawyer to start the foreclosure
process. You will receive a letter from the lawyer demanding you to either
pay the full amount owing on the mortgage or only the arrears. You be
given a deadline after which the foreclosure process will start.
The first step in the
foreclosure process is for the lawyer to file a document named "foreclosure
petition". Within few days after the petition is filed in the court
you will be served with a copy. The petition is being sent to all
interested parties including other mortgage holders, tenants in the
property, other lien holders etc.
Make sure you read the petition and follow the instruction of how to file
an appearance. About a month later there
will be the first hearing in the court. At the hearing the judge will give
the lender an "order nisi", and in most cases, it will also give you time
to "redeem" the mortgage by paying the full amount you owe, plus interest,
costs and taxes. This time is called the "redemption
period" and it's usually 6 months. But sometimes the lender will ask
the court for a shorter redemption period.
Following the redemption
period of typically six months, the lender may choose to have the
property listed for sale by the court or seek an "Absolute Order of
Foreclosure" from the court. In the case of the property
being listed for sale by the court, the court approves the sale of the
property. If the sale does not generate sufficient money to pay the
petitioner in full, the petitioner can then seek a deficiency judgment
from the court against the borrower.
In the case where an Absolute
Order of Foreclosure is granted the petitioner becomes the new registered
owner of the property and all other respondents are removed from the title.
Once this order has been given by the court, no further action can be
taken against the borrower, These Absolute Orders of Foreclosure take
place only if the property value equals or exceeds the debt, and the
borrower has no assets to apply toward any deficiency.
Thanks to Michelle Castillo, www.foreclosurehelpbc.com
(800) 224-1664 info@foreclosurehelpbc.com
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For Sale: Commercial Property at 1601 Bowen Road, Nanaimo
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 Annetter Roehlig says:
The property is
strategically located at a high traffic road with superb visibility and
accessibility.
To the best of my
knowledge:
The land is 22855
square feet.
The building is about
9000 square feet with about 8000 of that being lease-able space.
C4 Mixed Use
Commercial Zone.
The building and
grounds are well kept.
In the last couple of
years we have attended to substantial upgrades on the roof and we have done
some work inside the building. These repairs/upgrades are not regular and
therefore, I have deducted them below from the Expenses. For consistency I have
also deducted the 2007 repairs. The new owner might want to allocate his/her
own amount or percentage for annual repairs/upgrades.
Gross Income -->owners
use included
In 2007 $72,000
-->$90,000
In 2008 $75,000-->$93,000
In 2009 $88,000-->$106,000
In 2010 (October 1,
2009 through 1. March 2010 - ½ yr.) $44,000--> $51,500
Expenses (mortgage
excluded) were approximately:
in 2007 $38,000 minus
repairs $4,000 = $34,000
in 2008 $56,000 minus repairs $20,000 = $36,000
in 2009 $70,000
minus repairs $28,000 = $42,000
in 2010 (1/2
year) $12,000
Current monthly
income about $7000.
I would be
interested to lease back for half a year at $1500/month.
The potential Rental
Income per month is over $10,000 - $120,000/year. With total
expenses of $50,000 (including allocation for upgrades/repairs). The potential
net income is $70,000/year.
I offer the strip
mall for $899,000.
I will send photos
asap via e-mail. I have Financials for
the past 3 ½ years, rent roll, and drawings of the building available in my
office. If you have any
further questions or wish to preview the property please call me.
Sincerely, Annette
250-740-3948, annette.roehlig@shaw.ca
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| The Trinity of American Foreclosure Properties
| High Cap Rates, Considerable Appreciation and Generous Lending Power
By Jesse Ellis
When purchasing foreclosure properties in America, most people think that the main opportunity lies in buying low and selling high in the years to come.
In Florida, with the average of 8-15% cap rates and the ability to leverage above your cost base, the opportunity can be far more lucrative than the average investor might realize.
In South Florida, where properties can be purchased for less than 25 cents on the dollar, investors are picking up 2 bedroom condos for an average of $40-50 thousand dollars which generate around $900 rent. This is a great investment on its own, but there is a lot more a savvy investor can do in this equation.
With properly selected properties, there is an opportunity to purchase property and leverage to levels matching the future appraised value which is often higher than the distressed purchase price. One particular bank in America specializes in lending to Canadians using their Canadian credit history and using their USA property as collateral.
Using this strategy, it's quite possible for an investor with an outlay of $50,000 to have the potential to purchase 2 properties in Florida that are all cash flow positive. It is however very important that you use caution as many have been burnt in this market. One such company that specializes in an all-in-one solution for foreign investors is www.CheapFloridaRealty.com.
The use of highly skilled realtors that know the area of contract law, as well as competent and fair priced contractors, in addition to property management, is a recipe for success in this market
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