Victoria Real Estate Investors Club Newsletter

June 2011

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Cheri Crause picCheri Crause

 

Royal LePage Coast Capital Realty   

1933 Oak Bay, Victoria     

250-592-4422

   

Next Breakfast Meeting 

Sat, July 16,

9:30am

   

Princess Mary Cafe 

 

right on West Bay in the inner harbour, at 453 Head St in Esquimalt

   
reserved under Real Estate Club   

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AINEY 

CONSTRUCTION

   

250-818-9725

 

Renovations, Additions, Roofing, Siding, Fully Licensed and Insured   

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Mike Patterson Head Mike

Patterson

 

 

  Plumber

 

250-880-0104

 

 

 When you need a trustable, reliable, and reasonable Plumber who can do the job right the first time.  

 

 
Gord_smilingHi Folks!

Let's have a vote, is summer here or not? I vote maybe. Still, I'm grateful for the occasional full day of sunshine. My mood is swinging up and opportunities abound.

We have an accepted offer on a property in Gordon Head (see pic to the right). It's a fixer that has many ways to complete on. I'm wholesaleing the contract to another investor this time (won't be around much in July/Aug to get the work done on it myself).

Was it being at the right place and the right time that this opportunity came my way? Or, have I set clear goals and made lots of small decisions leading toward this result? Or, have I made a strong intention and the universe has no choice but to provide this for me?

I believe the 3rd option is correct, I like the 2nd option as a logical description of what happened and I think the 1st option is dis-empowering and fatalistic. Like when the cops say the shooting victim was at the wrong place at the wrong time. BS! That's letting people off from taking responsibility for their actions or being accountable for their results. If you want excellent results in life, you gotta be clear about what you want and KNOW you're going to get it. That's my daily practise and I encourage you to do the same, no matter what's going on for you in your life.

Ok, stepping off the soapbox (at least for a few minutes, I like the view from up there!)........

There's not much "news" out there right now on real estate except for the 2 articles to the left. Even then, it's a bunch of stats loosely interpreted to mean whatever the author has chosen to expound on. Oh well, at least it qualifies as new information, IMO.

The next VREIC meeting is Tuesday June 28 at 7 pm. This month our speaker, Mike Nichol from Megson FitzPatrick, will give us some insider information on setting up insurance policies for our investment properties. As usual, we can learn a lot from mistakes made in the past and Mike will bring that valuable advice to us so we can get the correct insurance when buying a new property or renewing our policies. See details below.

Check out Julie Broad's quick reminder at the bottom on how to interpret the list price of a property

If anyone out there has hiked up Mt. Kilimanjaro recently, I'd like to take you out for coffee and ask some questions, 'cause I'm doing that in September of this year. That result is from my clear intention to live a long and healthy life and to travel the world by foot.

The next breakfast meeting is on Saturday July 16. It's fun so come out and join us!

That's it for now. See you on the 28th.

Gord Knox

 

Tuesday June 28 Meeting

Meeting Drawing

Insurance for Investment Properties


Mike Nichol of Megson FitzPatrick has agreed to speak about the complex subject of Property Insurance.

Does anyone out there understand all the terms on their insurance policies? Where does the most risk lie in that complex contract? Where can property owners easily get tripped up when deciding what to include?

Mike says: "Since 1968, our clients have relied on the people of Megson FitzPatrick as their trusted insurance advisors. Why? Because we put people first. We always look for better ways to do things, and better ways to expand our knowledge and improve our service.

When one is doing up a residential real estate contract, the home insurability is one of the "subject-to" specifications. Our goal is to familiarize you with some aspects that can hold up real estate transactions with respect to "Insurability". We will also discuss some of the concerns with Rental Properties, Condo/Strata Properties and other related insurance issues.   

 

Between Chantal Arnold and Mike Nichol we have 32 years experience in the Insurance Industry and currently work in the commercial department and manage the new business and the ROMS Program.

 

We hope to provide some clarification with your insurance needs. Please bring your questions"

 

7 - 9 pm
Tuesday June 28, 2011
Comfort Hotel
3020 Blanshard St
 
$15 at the door (no charge for annual or REAG members)
 
There's always an after-meeting meeting at Redd's down the hall for networking, socializing, eating, etc.


 

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Andy VickersDominion Lending logoAndy  

Vickers 

Mortgage Broker

Harbour View Mortgages                Home purchase   Multi-Unit Investment Properties

(250) 477-7555                                            Refinance    Construction  Commercial  Land

www.andyvickers.ca                                   avickers@dominionlending.ca

 

Ignore the List Price - It Means Nothing


By Julie A Broad

Sitting in a recent real estate investing seminar, I choked when the presenter started using previous list prices as proof that properties on the market today were a great deal.

He pointed to one property saying that last year it was listed for $175,000 more than it's listed for today, so it's a bargain!

This 'expert' presenter was making the same mistake many new investors make, and that is thinking the list price has some relation to actual value. In fact, many real estate investors believe they've purchased a rental property at a good deal just because they managed to purchase it for less than list price.

Don't confuse list price with the real value of a property. In many cases, the listing price is just the wish price of the seller or some lofty value a realtor gave the home in order to convince the sellers to list with them in the first place. It actually doesn't have a foundation based in reality in many cases.

You'll get a better indicator of value by answering the following questions:

What is the cash flow?
 What are other properties in the area SELLING for? (Look at properties that are comparable in overall size, number of bedrooms and bathrooms, as well as lot size.)
 And, finally, what would it cost to build that property right now?

In residential real estate, the best indicator of value is typically based on comparable properties in the area - what they SOLD for, not what they are listed at. But you should also consider cash flow and replacement cost.

List price shouldn't factor into your calculations. Neither should the property's assessed value. Neither of those numbers will consistently be a true reflection of what a property is worth. Do your own analysis. Then you can be certain you're getting a good deal... whether you are buying a property for less than list price or not.

For more insider strategies for getting started as a real estate investor, sign up for real estate expert Julie Broad's free real estate investing newsletter at her website http://www.revnyou.com Get your free report for making money with real estate when you sign up.

Article Source: Ignore the List Price - It Means Nothing