Tuesday July 27, 2010 Meeting
This month Lance Cook of Canada's Best Mortgage will give us an update on how the current economy is affecting the lending market.
If you've listened to Lance at previous meetings, you know he uses real data to reveal trends that RE investors can use to strategize for future property buys and sells. The lenders are changing their rules and the economy is still in flux. Come out and listen to Lance summarize it all.
Some points he will touch on: - New mortgage rules explained: There are so many reasons
why you may be declined by one lender and approved by another:
- Income verification: What types of income can be used and when
- How do lenders qualify income and why are they different from each
other?
- New rules for stated income mortgages that will affect self employed
borrowers
- New rules on how lenders look at rental income used in qualifying your clients
- Should I go variable or fixed rates? We will look at these options and where
the market is heading.
7 - 9 pm
Tuesday July 27, 2010 Comfort Hotel 3020 Blanshard St
$15 at the door (no charge for annual members)
There's always an after-meeting meeting at Redd's down the hall for networking, socializing, eating, etc. |
 Mike Patterson
When you need a trustable, reliable, and reasonable
Plumber
who can do the job right the first time.
250-880-0104
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Opportunities
Disclaimer: even though Cornell has obviously analyzed his deals well, if you buy one of these properties and end up with leaky decks, wacky tenants and a cow that gives milk instead of cash, don't blame me. Get lots of numbers from lots of people before investing!
Cornell Pidruchney says:
I have a house in Cedar that I acquired on long-term
lease-option.
It's older but has 2BR 1 bath up and is set up to be a
large suite down, plus has 2 shop areas and extra space for yet another suite!
If you are interested please let me know! It has
potential to be a real cash cow. Cost of mortgage, taxes and insurance is
about $1,200/month. Could rent for easy $1,600 as is, or much more if
some suite work is done.
Also, I have located another house in Cinnabar Valley
that has 3BR 1 bath up and a 1BR 1 bath suite down. Market value is
around $299K.
Already had offers of $296K and $306K that fell
through. Owner is motivated and stressed, wants an easy cash-to-mortgage
deal and will walk at end of July!
The suite is rented for $700 to a great tenant who
wants to stay and I can get the house below market if someone qualifies to
assume the existing $248K mortgage and comes up with $16K cash for the
owner! The cost of mortgage, tax, insurance is about $1,550 and upper suite
should rent for easy $1,100 likely more.
I'm trying to lease-option this house from the owner
but if I can't then I will want to sell this deal to an investor (you!).
Cheers;
Cornell
4
Pillars Consulting Group, Vancouver Island Office
Suite
#230, 1-5765 Turner Road, Nanaimo, B.C. V9T 6M4
Direct:
250-756-9239 Toll-Free: 1-866-756-9239
cornellp@4pillars.ca www.4pillars.ca
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How Do I Get Into Commercial Real Estate Investing?
By Nick Cifonie
First of all, commercial investing is not as hard as people think. There seems to be a stigma surrounding commercial investing. People think it's the big glass 100 million dollar buildings downtown. Sure, it is, but it's not always that. There are many different kinds of commercial investing that you can get into. You can start small and work your way up. It's not as hard as people think. It's not as hard to get funded, to find deals, and sometimes not as much work, once you have the deals.
Everyone that owns commercial properties are not like Donald Trump. They don't all have their own TV shows, aren't in the news, aren't in the casinos, own sports teams, and don't have the perfect woman on their arm. It's just real people that own most of the commercial properties out there. People like you and me. It's the guy next store. The guy that owns a few Dunkin Donuts stores. There are all types of commercial properties.
Let's talk about the basics. First off, what is commercial investing? When it houses a business, it's a commercial investment. Business parks, where it's one level, and there are many different buildings, those are commercial rented condos or business offices. It consists of office buildings in office parks. There are also industrial parks which look like office parks, but they are mostly blue collar businesses like manufacturers, warehouses, and storage places. This also includes strip malls where there are Starbucks, Dunkin Donuts, UPS stores, etc. It's one building, one-story tall that's broken off into many different stores. Then we have our indoor malls where there are hundreds of stores inside, which include an anchor store, which is the main store, like a Sears or Kohls to get your attention. There are also office condos which house doctors, offices too. Also, we have warehouses, and even apartment houses. These are considered recession-proof properties. Assisted living facilities are commercial properties as well. Let's not forget about land. People are buying land and putting a cell tower or antennae on the land and making money.
When you are out driving around, please pay attention to what you are seeing. Start noticing these commercial properties. Start thinking about commercial investing! Commercial investing adds a zero. You can do one deal a year in commercial investing and become a multi-millionaire. Some people have done one deal and it has changed their life, enabling them to retire. Don't let it intimidate you. It just has one more zero on the end!
One of the things about commercial investing is that once you own the property, it's easier to maintain it because most of the time, you will let the pros handle it. You will have a management team to handle the payments, as well as attorneys and accountants handling the day to day work. There will be less day to day work once you own that commercial property, versus a residential property. Let's face it. If you own one piece of property with tenants in there, you know how much work that is. If you have a few properties, it's even more work dealing with tenants not paying, collections, disappearing tenants, and cleaning it out and finding new tenants. It's a lot of work! Virtually, you can pretty much have the pros do it for you. You can hire a management team, attorney, and accountant. Properties generally throw off enough monthly cash flow so that you can have it all taken care of for you.
Anything you do with residential properties, you can do with commercial properties! You can buy and hold a house and rent it out, as well as a commercial property. You can wholesale it, get a contract on it, find someone to pay more, flip it, and step out of the deal. You never owned it. You get your finders' fee or spread, but instead of making $3,000 or $8,000, you can start making $50,000 to $200,000 just by flipping commercial deals. Just add another zero or two! Don't let it intimidate you!
You can also lease commercial properties with the option to buy and make the big bucks!
All of the same techniques you can use with houses, you can use with commercial properties. Note that one of the main differences is how you get the value. For houses, we run comps. For commercial properties, we appraise it on how much cash it's throwing off. You can have two apartment buildings across the street from each other or in the same complex, and both apartment buildings can be identical. But, if one is 30% occupied and one is 70% occupied, and the first one is worth $700,000 and the next one worth 3 or 4 million, the only difference is how much it's occupied. How do you make big money fast in commercial investing? You find the one that is 30% occupied, find 5 or 6 tenants and bring it up to 70% occupied, and then you sell, get out of it, and make the spread. You can double or quadruple the cost or equity of commercial property by controlling it, filling it, and then getting out of it. It's a beautiful thing!
Don't let commercial investing intimidate you. Add a couple of zero's to the profit! Consider opening your mind about commercial investing. Start thinking big!
Nick Cifonie is a long-time real estate investor, speaker, and mentor. Nick has bought and sold millions of $'s in single family homes and multi-family properties, using techniques including bird-dogging, wholesaling, lease-options, subject-to transactions, buy and holds, seller financing, retail flips, assignments, options, auctions, and has even flipped property on EBAY! Nick is the current host of the popular "Real Estate Investor TV", a fun, educational series found at: http://www.realestateinvestoronline.com
Article Source: How Do I Get Into Commercial Real Estate Investing? |
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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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What is Stopping You?
Rick Hoogendoorn, who spoke at the club a while back, is having a no-charge event at the Comfort Hotel on Monday August 9, 7-9pm.
He'll be outlining both The Work and his insight into finding hidden beliefs and assumptions that prevent us
from going after what we want.
He'll have his new book "What is Stopping You?" there for sale.
Pre-register at 250 882-1359 or rick.hoogendoorn@shaw.ca
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Cheri Crause
Royal LePage Coast Capital Realty
1933 OAK BAY, Victoria
250-592-4422
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Gord and Denise have an investment property for sale in Langford.
See the listting here.
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