Nanaimo Real Estate Investors Club Newsletter
May, 2010 |
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Next Victoria Meeting
| On May 25, 2010,
Adam Gant from
League Assets
will speak.
League's new development, Colwood Corners, will likely be the focus of this talk. I predict you will be impressed with their unique offering.
Comfort Hotel
3020 Blanshard St
7-9pm
$15 at the door
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Hi Folks, I've been re-learning techniques for becoming a more effective RE investor. Stuff we were taught in 2003 is finally sinking in 'cause we're willing to listen to it all again. Dwayne Sequeira spoke in Victoria on April 27 on using scripts when communicating with buyers, sellers, renters, etc. It dawned on me 10 minutes into his talk that this was old news and yet I wasn't take advantage of it. Of course now I see how to use it in all parts of my life. There are so many ways to use simple systems to make investing in RE quick and easy. If you truly want to make RE investing part of your path to monetary success, I suggest you get a mentor/coach who's already using these systems, allow yourself to be taught, then take action. Turn on the systems, and let them work for you. Scripts are great as are the techniques Julie Broad will be revealing at the May 4 meeting. Soak in these methods people, they work! I've contacted a new RE investor friend, Michelle Castillo, through Canadareic.com and she's agreed to share her knowledge about the foreclosure process in BC. See article below. I recommend you try out canadareic.com as a place to network with investors from all across Canada. Speaking of foreclosures, an ex-Canadian investor now in Florida has a few words to say about getting started in RE investing down south using a simple strategy that takes advantage of the unique RE and lending market there. If you're attracted to Florida, contact him. See his article at the bottom. There's always a bit of education in the news articles to the left. I admit it's mostly fluff and other people's opinions, yet, little gems can always be found. I suggest you give 'em a quick scan. Take Care, Gord Knox |
May 4, 2010 Meeting
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The meeting on Tuesday May 4, 2010 will be packed full of ways to attract motivated sellers, great properties and attention from sellers and buyers. Julie Broad will be the speak and she will talk about farming for real estate leads ... her yellow
letter campaign, their bus bench ads and some of the other marketing they're doing to generate new real estate deal leads. Her and Dave are very modern in their approach and have tons of energy and ideas. Follow the link at her name above to see more of what they're up to.
Beban Park Rec. Centre
2300 Bowen Road
Room 8 (right off the breezeway)
$10 at the door
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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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OPPORTUNITIES |
Hey, Cornell is undoubtably an honourable and honest man. OTOH,
if you end up living in a cardboard mansion while he para-glides in Peru 'cause
your venture with him went sideways don't call me complaining about the weather
and your nasty relationship with debt collectors. Ensure you do the maximum
diligence checking out his opportunities before you hand over the money!
Cornell Pidruchney says:
I have 2 opportunities:
1) It's a lovely 4BR 3 bath new home (2 years old) about 2,200 sq. Feet in a prestigous
area of Duncan, which I anticipate will be available for rent-to-own at
about $2,000/month with a small down payment. Price in the mid $400Ks. The main
floor is set up to be a separate suite, and is roughed in for bath &
kitchen.
2) I have an offer accepted on a small cute older house in Cumberland,
which I will be looking for a JV partner on. This is a very interesting deal
and I am looking for someone who has $100K in cash to invest and wants to make
a cash profit of $20K - $30K within a few months, getting all their cash back,
and perhaps then making another $30K - $50K in a few years on this same deal,
AFTER being paid back!
Cheers; Cornell
Direct: 250-756-9239 Toll-Free: 1-866-756-9239 Fax: 1-866-756-0150
cornellp@4pillars.ca www.4pillars.ca
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The Trinity of American Properties
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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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