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| September 2010 | Next meeting Tues Sept 28, 2010
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Victoria
Real Estate
Investors
Club
Newsletter
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 Hi Folks!
Now that fall's here, many cycles are changing direction. The sun's lower in the sky, leaves are changing colour, harvesting is almost done, warmer clothes are coming out of the closet, house prices are falling (again).
Of course, RE investors use house prices as an indicator of which strategy to use next. We don't actually care about the change so much as which way it's going. It always going somewhere. Up or down, life goes on.
Part of life is education. The news items to the right contain some interesting education IMO. Note the one about Trailer Park investing, the one about how Banks Control the Mortgage Market and Investing in REITS. Give 'em your attention please.
Also, if the Hillside Centre just sold (see news article) what does that mean to property values in that area, how does that affect leases in the mall, etc, etc. All good questions.
I've stayed away from discussing REITs at meetings and in this newsletter up to now. Do you think they should be part of an RE investor's portfolio? Or are they just like stocks - good for experienced, well-trained investors and eventual doom for the average joe? I'd like to hear from you all on that.
I'm getting excited about the Victoria Wealth Expo happening this Saturday September 25 at the Victoria Conference Centre. Ozzie Jurock will be the keynote speaker. He'll talk about Vancouver Island's RE market. Register here. I'll see you there.
There's another event that may be of interest to you happening on September 23, 6 pm, at the Delta Hotel put on by Westside Land Corporation from Calgary. They spoke at the club a couple of years ago. They apparantly have a new offering. I'm not recommending it, just notifying that there may be something for those of you who like land-banking as an RE investment.
At the bottom I've included a no-nonsense article on Home Inspections. It really lays out what an inspection actually means. Good reading IMO.
Note the Opportunites from Cornell below. As always, he wants us to help him so he can give us money. What's not to like about that?
The next VREIC meeting is next week, Tuesday September 28. We'll have an informative presentation on City Green's offerings. I promise you'll learn something new about energy efficiency and getting money back using government grants. Of course, there will be door prizes too. Isn't that a great feeling? You're looking at your ticket as the number is read out
and your heart begins to race? See below for details.
May you have an exciting, heart-pumping, weekend.
Gord
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CONSTRUCTION
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| September 28 Meeting
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Energy Efficiency Incentives for Property Owners
Glenys Verhulst, Communications Coordinator for City Green will speak on the programs City Green offers.
* Combustion Spillage Safety Testing
* Thermal Imaging
* Energy Assessments (Home and Multi Unit Residential)
* Custom Grant & Incentive Programs
* Custom Outreach Campaigns
* Custom Building Retrofit Programs
* LiveSmart BC Grants
7 - 9 pm
Tuesday September 28, 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.
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VICTORIA WEALTH EXPO - SEPTEMBER 25TH, 2010
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 Featuring one of Canada's leading business motivators, Ozzie Jurock will
be at the Victoria Conference Centre on Saturday, September 25th, 2010 from
10a.m. until 4 p.m.
Register online at www.VictoriaWealthExpo.com
The VREIC has endorsed Ozzie and his events for years. His knowledge of RE
trends in BC is second to none. Those of you who've attended Wealth By Design's
wealth expos in the past know that this event delivers great value.
Pre-register now and see you on Sept 25th!
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| OPPORTUNITIES |
Disclaimer: Cornell always gets over-exited about his deals and makes them sound irresistable and win-win and all that good stuff. If you give him money, sign a contract and end up driving around on a bicycle with two giant bags of plastic bottles hanging off the handle-bars on your way to the next trash can, don't blame me. I'm just the messenger here. Check everything before you sign!
Cornell says:
We have a new property in Duncan available for
Rent-To-Own and are offering a Referral Fee of $1,000 to the person who brings
us the buyer!
All you have to do is call or email me the name of a
person you know is interested, and looking for a property like this........and
if they sign a contract with us - then we PAY YOU ONE-THOUSAND DOLLARS!!!!! As an investor YOU ALREADY KNOW that: RENT-TO-OWN
is an excellent way to "bulk up" your Real Estate Income Portfolio
WITHOUT the requirement to qualify for a mortgage! You completely CONTROL a
piece of property, capturing the potential UPSIDE appreciation, but WITHOUT the
downside risk of mortgage liability! So how about you? For
investors we would be willing to extend the rental term to reduce the risk for
you and increase your profit potential! Here's the link to our Craigslist ad (text below): http://victoria.en.craigslist.ca/reo/1926040713.html Address: 6193 Lane Road, Duncan, B.C. RENT-TO-OWN
TERMS (all terms are negotiable, ask us!): Rent: $1,400/month Rent Credit $300/month of each rental payment is deducted off the price when
you buy. Rent-to-own Term: 3 years (negotiable, could be less or more) Price for 3-year term: $309K (when purchased any time within the 3-year term) Deposit Required: $15K ***All terms are negotiable for a quality tenant/buyer! For example, we could
extend the term, or adjust the pricing and other amounts depending on your
needs. Call Cornell for details: 1-250-616-9053
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Self Guided Home Inspections Serve Home Sellers, Real Estate Professionals and Real Estate Investors
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By Rick Daniel
By knowing in advance what home inspectors are looking for, the homeowner can eliminate many potential problems prior to a professional home inspection, realtors can help prioritize those items that will effect the sale and investors will know what to look for when doing market research.
For the Homeowner:
A self guided home inspection provides a step-by-step process that will help a Homeowner/Seller pocket more cash at the close of escrow. By knowing in advance what home inspectors are looking for, the homeowner can eliminate many potential problems prior to a professional home inspection.
Eliminating problems outside of escrow allows the homeowner to leverage time and control expenses in their favor. Having time to collect competitive bids from qualified persons for repairs, utilizing free services often available from local agencies, doing the repairs themselves and having the time to shop for the best price on materials are ways a self guided home inspection can build in more profit when the property sells.
For Real Estate Professionals:
When a client is willing to properly prepare their home prior to a formal inspection the Realtor acquires a more complete picture of a property's condition and thus more effectively advise a seller prior to and during the listing and sale. The Realtor can also help prioritize repair items that will most affect the sale of the property. The non-technical information the homeowner collects by doing a self guided inspection assists the Realtor by creating a more proactive seller.
For the Real Estate Investor:
Real Estate Investors/Buyers are taught that the profit is made at the purchase and realized at the sale. Besides the property's location and features, having a more specific way to look at a piece of property prior to making an offer, purchasing a foreclosure or bidding at auction can have a significant impact on the decision to purchase or pass.
Investors/Buyers who learn how to look at a building from the perspective of a professional home inspector are able to effectively recognize a building's true condition. This ultimately means greater control of costs, resulting in more profit when the property sells or reduced grief while living there.
VERY IMPORTANT POINTS ABOUT HOME INSPECTORS
There are a few points to be aware of regarding the reports of professional home inspectors. The information a report contains could have a direct impact on the sale and sales price of the property.
HOME INSPECTORS ARE NOT BUILDING INSPECTORS
Home inspectors are not required to be licensed in many states and they may not have any hands on construction experience. The report is a visual inspection made by a generalist who is not representing himself as a licensed contractor.
Home inspectors make mistakes like anyone else and all parties are free to get second opinions.
A HOME INSPECTION IS NOT A CODE INSPECTION
Home inspectors need a basis for the report findings. One of the many sources are the uniform building codes. Home inspectors use other sources of information including local building codes and ordinances, manufacturer's installation instructions and the Business and Professions code.
When the home inspector requests information regarding year built or when additions or remodeling construction is conducted, they do so because construction only needs to comply with the building codes in force at the time the building permits were pulled.
A HOME INSPECTION IS FOR A SPECIFIC LOCATION AT A SPECIFIC MOMENT IN TIME
After the inspector has left the site, if a window is broken, the furnace stops working or a toilet overflows causing damage, he or she obviously cannot report these situations.
THE HOME INSPECTOR IS A GUEST IN THE HOME
Inspectors are guests in the home and as such are not authorized to disassemble any fixture or appliance or remove any personal belongings, furniture, rugs or carpets. They should, however, be authorized to operate all the usual components of the home including lights and switches, stoves, ovens, dishwashers, compactors, disposals, spa tubs, hot tubs, generators, fans, garage doors, furnaces etc.
WHAT AUTHORITY DOES A HOME INSPECTION REPORT CARRY?
The homeowner does not have to fix any items just because they were listed in the report unless such repairs are required due to law or regulation established elsewhere. Common sense would dictate that hazardous conditions are addressed immediately but a home inspection report carries no authority requiring any person to take any specific action. However, the information collected during a home inspection could be used by the buyer to ask the seller to lower the asking price or repair or replace certain items.
Repairs or replacements that are conducted prior to any inspection will almost always be less expensive than those requested to be done by the perspective buyer.
PASS OR FAIL?
The home inspection is a visual inspection of the property's condition at the time of the inspection. A pass or fail concept is purely subjective and not an aspect of the process.
VERY IMPORTANT. IF THE INSPECTOR DOES NOT SEE IT OR FIND IT, IT WILL NOT BE ON THE REPORT
HOWEVER, this does not release the seller from the legal responsibility of disclosing everything they know about the property. The seller should not attempt to hide anything they find in their own investigation. That is not only wrong, it is against the law.
In the disclosure process the term "material facts" means anything about the property that could effect the buyer's decision to purchase. These facts must be disclosed by the owner, including any problems that have been repaired. There may be nothing evident to any person who looks at the property but a neighbor could disclose the previous problem for you, and that could lead to a lawsuit.
FINALLY
In the inspectors reports, the terms "Notes" "Issues" and "Findings" each refer to the same thing. They are aspects of the property that are potential hazards, flaws, defects or any condition that significantly affects the value, desirability, habitability, or safety of the dwelling. A responsible home inspector will look for and report on these items.
Rick Daniel
Certified Master Inspector http://27DollarHomeInspections.com
Article Source: Self Guided Home Inspections Serve Home Sellers, Real Estate Professionals and Real Estate Investors |
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