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Real Estate Market Fundamentals Update
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June is Super Real Estate Month
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"97 Tips For Canadian Real Estate Investors"
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What's behind the Curtain Free Real Estate Events- Be wary of "Gurus" coming out of the woodwork
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D.A.N.G.E.R.: Why People Fail To Succeed (part 2) By Steve McKnight
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Final Thoughts
IMPORTANT NOTICE
Before we get to ALL the details in the newsletter, The Calgary ACRE System Program, taught entirely by Don R. Campbell, and special Canadian Real Estate quests, is coming up soon (June 10th & 11th) and is filling up more quickly than ever before in history (382 people are already registered)- the word is out.... ACRE System makes an immediate impact. In fact, this event may sell out within the next 2 weeks.
The good news is it is completely revamped for 2006. New Banker Strategies, New 11 Fundamentals, New Landlording Secrets and much, much more. Currently more than 31 forms have been revised & updated for 2006 to keep you on the leading edge of the Canadian Real Estate Market. For a special $200 discount click here to read all the details:
Thank you to the hundreds of new subscribers to the Canadian Real Estate Insider Newsletter. Congratulations to the many of you who have used the information, downloaded free audios and tools directly to your computer and most importantly, implemented these strategies in your Real Estate investing business. This month's newsletter is filled with information, and links to key information on the Canadian Real Estate Market. Make sure you read right to the end so you don't miss any details or key opportunities...
REAL ESTATE EDITORIAL
1) "Real Estate Market Fundamentals Update"
I trust this newsletter finds you with a smile on your face as you look at the Real Estate market results over the last few months. And the best news is, the fundamentals are still showing strong for Selected Ontario, Alberta and N.E. BC. towns. YES, the Real Estate Investment Network’s research said it was going to happen and now we are seeing the fundamental research prove itself once again.
Because we have seen these types of market conditions before, I do want to caution you - don't get caught up in a panic buy situation. YES, the market is frothy... the post plateau jump (in certain markets) is in full swing. The key right now is to stick with your system, have those strong relationships with a few quality realtors who know what you're looking for, have your mortgage broker pre-prepared (in other words, have a rate-hold discussion with them so when you need to get approval it will be quick) and most importantly, be pro-active.
Use your offer cover letters, make sure you know the maximum you can pay for the property to make sense, and if your current target area doesn't have properties that make sense, turn your focus to a secondary region where they do.
We just received a few more e-mails from successful Canadian Real Estate Investors this week about how a little pro-active marketing (flyers to target regions etc) has been very productive in this hot market. The key in this equation is being pro-active. We're also seeing some tremendous results from Members who have a web presence (on all aspects of the business: the buying, selling and renting sides). In a hot market such as this, that extra 10% really makes all the difference.
As the Real Estate markets continue to heat up, it is now more important than ever that you focus on the unbiased economic fundamentals, and remove yourself from the hype and emotions that surround the Real Estate market. As well, during this time of hot markets and increasing interest rates you will need to be better educated and more on top of the economic fundamentals or you risk making a poor investment decision.
As we've continued to predict, price increases are going to CONTINUE to speed up for the next few months. Certain Canadian cities has never experienced the kind of appreciation that we are currently seeing -- and the incredible part of this all is that it's not being driven by speculation -- it is being driven by the fundamentals forming a "perfect storm".
When Studying the Real Estate Markets we focus only on the Fundamentals (for more detailed information you can refer to the Canadian Best Selling Real Estate books, by Don R. Campbell). These fundamentals that we study are:
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Mortgage Interest Rates
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Net Wealth Effect (Disposable Incomes, Median Incomes, Employment Rates, Housing Affordability Index)
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Increased Job Growth & In-Migration
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Real Estate Doppler Effect
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Local Regional & Provincial Political Climate
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Critical Infrastructure Expansion
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Increased Costs of Labour & Materials
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Area Gentrification & Renewal
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Maximizing Value and Zoning Opportunities
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Renovations And Sweat Equity
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Speculation & Rumours
When you follow these fundamentals, predicting the Real Estate market and seeing the Real Estate BOOM markets becomes very easy. You can also easily identify areas with a future and not a past, just like REIN™ predicted 2 years ago that Calgary would be seeing a Real Estate BOOM unlike it has ever seen before (+29.7% growth in the past 12 months).
Congratulations to those of you that followed sound fundamental advice and invested in one of the REIN™ recommended areas. In fact, your next opportunity to hear our updated research in the Canadian Real Estate market will be at the ACRE System in Calgary June 10- 11. Don will be going through each one of the Key Fundamentals in detail that drives the Real Estate market. You will walk out of this weekend with the 'next' hot areas to invest in. Invest in areas with a future not a past. The seats are filling up quickly. To reserve your spot and not miss any of the key research click here
2) June is Super Real Estate Month
June is shaping up to be one of the busiest months for Real Estate Investors. The following dates are available for you to see Don R. Campbell and his team of hand picked experts present live.
May 27, Coquitlam BC (Book signing -- Chapters Pinetree Village 2:00pm. Open to everyone)
June 6, Toronto ON.(exclusive REIN™ member meeting)
June 9, Calgary AB. (exclusive REIN™ member and ACRE System guests meeting)
June 10, 11 Calgary AB. (ACRE System Presentation 2 day weekend) *** seats are filling up Quickly **
June 13, Edmonton AB.(exclusive REIN™ member meeting)
June 23, Red Deer AB.(exclusive REIN™ field trip-- touring Top Investment Towns)
June 24, Red Deer AB.(exclusive REIN™ all day power workshop)
June 28, Toronto ON.(exclusive REIN™ member meeting)
If you would like more information on how you can become part of Canada's leading network of Real Estate Investors, and take part in all of these exciting Real Estate Events call our office at 1-888-824-7346, and Sonya or Carolynn would be glad to talk to you personally, or click here for more details.
3) "97 Tips For Canadian Real Estate Investors"
If you have not yet picked up your copy of "97 Tips For Canadian Real Estate Investors", currently Amazon.ca is offering a special deal for you... Save 45% of the current regular price. As with our first book, One hundred percent of the authors' royalties will be donated towards Habitat for Humanity... so thank you in advance for your support of Habitat for Humanity.
See here for more details (If you order 3 or more copies from Amazon, you can take advantage of their free shipping offer).
If you want to read more details about the book and find out about the offer for four hours of audio programs after registering your book, click here
TIP #53
Analyse The Property Right Down To The Last Nickel. It’s time to crunch numbers – even "future" numbers
Many beginning investors only analyse the absolute basic expenses when deciding whether a property’s income will cover the operating expenses. The most common cry of the soon to be broke investor is “I found a property and the rent will cover both my mortgage and my taxes!” Sadly this uninformed view of investing has led these neophytes into some very bad deals.
Once again, the critical key is to be brutally honest about a property’s potential. analysing the true income that it can create (rather than what you hope it will create), along with all of the ongoing expenses you’ll need to cover with this revenue. (much more than just the mortgage and taxes)
This is also true of the costs of closing on a property. Many beginning investors fail to analyse the true cost of buying a property, which is much more than just the down payment and legal costs. Sophisticated investors know that there are many additional costs that need to be budgeted for well in advance.
What do you need to do?
1. Crunch the numbers.
Take a harsh look at all properties you will be investing in. Don’t ever get caught wearing rose-coloured-glasses when doing your analysis. Sophisticated real estate investment comes down to bare bones number analysis. At the end of this tip, we’ll give you a checklist you can use to ensure you are analysing in detail.
2. Be Thorough.
Remember all the talk about how successful investors go the extra 10 percent? This is where that 10 percent saves and makes you money. Leave nothing out. Sure it takes an extra few minutes, but this analysis will tell you the truth about the property and save you from getting caught in a bad deal.
Cash Flow Analysis Numbers. Make sure you get accurate numbers for all of these and any others that are specific to your property:
Income:
Rent
Laundry
Parking
Other
Expenses:
Heat
Electricity
Water/Sewer:
Property Taxes
Condo Fees
Insurance
Property Management
Vacancy Allowance
Repairs & Maintenance
Snow Clearing / Landscaping
Mortgage Payments
Closing Costs:
Legal Costs
Legal Disbursements
Professional Inspection
Appraisal
Title Insurance
Property Survey
Mortgage Fees
CMHC Fees
Land Transfer Tax
Property Insurance
Renovations
Reserve Fund
This is just one of the 97+ Tips. If you want to read more details about the book and find out about the offer for four hours of audio programs after registering your book, click here
4) What's Behind the Curtain - Free Real Estate Events
Recently we have noticed a massive increase in so called 'real estate experts' coming out of the wood work. During our 14+ years of assisting Canadians in cutting through the hype & misinformation of the Real Estate Market, we have seen this 'Guru' cycle before. This has happened in past booms as well, because it is easy to look like a Real Estate genius in an up market. (Check out the 6 Critical Questions to ask: Listed in Tip #10 of '97 Tips for Canadian Real Estate Investors'. That way you can begin to find out if these people are real or not.).
You will see the marketing everywhere, advertising Fr*ee events and how to Get Rich Quick. I urge you to dig deep and complete your thorough homework on these events before you attend, and remember, never get caught in a 'feeding' frenzy at the back of the room!
The important thing for sophisticated investors is to ensure that you are not getting caught up in the emotions of the market. Always do your complete due diligence on a property and never buy just to buy... or just because someone told you it was a good deal.
It is important to watch out for people who have a vested interest in you buying properties from them. For instance, someone telling you a town or region is a great place to buy, then a few weeks later they just happen to have property for sale in that region and you get the 'exclusive' first chance to buy it.
Be wary of these opportunities, and make sure you complete your due diligence on the property and the promoter. Never allow yourself to get 'pressured' into these deals due to 'fear of missing out.' And always be wary of supposed 'educators' who also sell lots of property to their clients. Not all of them are bad, but the odd one can really 'pressure' you into a bad deal due to the trust you have put in their hands.
5) "D.A.N.G.E.R.: Why People Fail To Succeed"
(part 2) By Steve McKnight - Best selling author of "From 0 to 130 properties in 3.5 years"
Last month, we started a discussion on why people fail to succeed in property investing. In doing so we identified six factors that, when combined, make up the word "D.A.N.G.E.R."
Last month we outlined the first three, namely:
D - Distraction
Beware the 'time vampires' who come and suck away precious minutes with questions and issues that are not critical. Distraction leads to busy-ness, and busy-ness is a justification for doing lots, but achieving little.
A - Action
The importance of taking action is not rocket-science.
If you do nothing then you'll achieve nothing! If you want to achieve something, then do something. Are you doing nothing but expecting something?
N - Negativity
Frustration is a natural part of investing, especially if you subscribe to the mantra of 'find problems and sell solutions'. Therefore, you need to have a system for handling the doubts and fears that are certain to infiltrate your mind from time to time.
Right, let's wrap up the discussion with a look at the final three:
G - Goals
Oh no, not more talk of 'goal setting'!!! Oh yes! <evil laugh> The importance of goal setting has been done to death - just go into any bookstore and you'll find stacks of titles on the subject. My take on goal setting is simple - those that set goals gain direction and momentum by identifying what they want.
On the other hand, those that don't set goals tend to amble along in life accepting what comes their way. One is an active approach, and the other is a passive approach. One allows a certain amount of control, the other places a higher emphasis on randomness.
Can you still succeed without setting goals? Of course! Yet, you're likely to improve your success as you gain greater clarity and focus. In summary, people fail to succeed because they don't know what they want in the first place because they haven't set achievable goals.
Do you know what you want? If not, how do you know what to invest in other than a broad aim of making money?
E - Evaluation
A few days ago I had the unfortunate task of attending a funeral. I had been told that the Funeral Home was in High Street, Kew, and, knowing that area generally (but not the exact whereabouts of the funeral home) I headed off to High Street.
Well, I arrived at and traveled down High Street all the way though Kew, but I didn't come across a funeral home.
As it was coming close to the time when I had to be there, I needed to come up with a solution fast! So, I pulled over, sent my wife into a shop to check the address while I looked in the street directory on the off chance that Funeral Homes were listed in the index.
Surprise, surprise, they were! It turned out the address I needed to go to was High Street in East Kew, so I quickly turned around and arrived just in time. What's the essential message? We might think we are heading in the right direction, but it is always sensible to stop and evaluate when we don't get the result we anticipate.
When it comes to property investing, many people achieve a little bit of success and then promptly stop evaluating their progress, thereby becoming passive in nature rather than being active managers of their assets. This is a huge mistake! Let me be clear - managing your money is THE most important act of investing that you can ever do. I can't stress the importance of this enough! I know plenty of property investors who think they are fantastic at the bricks and sticks side of real estate, but even if this is the case, their inability to manage money means they can never keep significant wealth.
It would be a shame to be so busy rowing that you couldn't take the time to look up and make sure that you were heading in the right direction.
Do you have a property portfolio that has evolved without a lot of planning? If so then don't just amble along - evaluate your returns against what you desire and then take action where needed.
R - Relaxation
Burning out occurs when you run out of investing oomph. It is a rare thing to find something who is not enthusiastic about investing when they begin. However, as time goes on, all that hard work can quickly lead to mental and physical exhaustion.
The final reason why people fail to succeed is that they never stop to rest and recuperate. It's all Go-Go-Go, until such time as it becomes Slow-Slow-Slow, until such time as it becomes No-No-No, before ultimately it ends up at Oh-Oh-Oh!
It's good to be focused, but by its very nature, you can't be focused 100% of the time. You also need an outlet away from investing that gives you a context for your investing. Otherwise you can become self-absorbed and fall victim to the trap of trying to acquire more money for the sake of it. Do you have an outlet for relaxation that acts as a pressure-valve to release tension? If you don't then you may be internalizing your stress, and this can quickly turn into health or well-being issues.
7) "Final Thoughts"
Now is a wonderful time to let a little caution and calmness into your Real Estate life. The market is very hot and the 'Guru's" are telling many different stories... it is starting to fell like it is a rage. Don't get swept up in the market frenzy. If you are investing in a fundamentally strong region and completing your due diligence, then it is a good time to invest.
If you are feeling pressured, take a step back, focus on what is real and you'll become a much more successful investor. Helping you take the hype and misinformation out of Real Estate Investing is why we started the ACRE System program 14 years ago. And Graduates of this program have purchased over $1.3 Billion of calm, low risk Real Estate using the simple strategies you'll learn. Canadian Specific, by Canadians, for Canadians. Looking forward to seeing you in June!
We'd love to hear what you think of this issue!
Please send your comments, questions, and ideas for upcoming issues to us at: info@reincanada.com
Your feedback matters to us!
Keep your eyes peeled for key, fundamentally strong Real Estate deals, and no matter who you are dealing with always do your complete due diligence. Hope to see you at the next REIN™ Workshop in Toronto on June 6th and June 28th, Edmonton on June 13th, Calgary on June 9th. If you are not yet a Member of Canada's most successful by far, and longest running Real Estate Program (14th Year), now would be a great time. Call Sonya or Carolynn at the REIN™ Office today at 1-888-824-7346 for all the details. Or if you prefer, click here to see all the benefits that REIN™ provides you across this amazing country of ours!
It's your time to take advantage of this Real Estate Market...
Once again the Calgary ACRE System Program, taught by Don Campbell, is coming up very quickly (June 10th & 11th) and is filling up more quickly than ever before in history - the word is out.... ACRE System will make an immediate difference in your life.
The good news is it is completely revamped for 2006. New Banker Strategies, New 11 Fundamentals, New Land lording Secrets and much much more. Currently more than 31 forms have been updated for 2006 to keep you on the leading edge of the Canadian Real Estate Market. For a $200 discount click here to read all the details:
Don R. Campbell and The REIN™ Team
"Turning Real Estate Dreams Into Realities... One Investor At A Time!"
To Tap Into The Latest Canadian Real Estate Strategies Today.
Copyright 1996-2006 by Real Estate Investment Network. All rights reserved.
P.S... Help support Habitat for Humanity. "97 Tips For Canadian Real Estate Investors" is now available. You can take advantage of a special offer from Amazon.ca and save 45% off the cover price of $26.99. To order directly click here. (If you order 3 or more copies from Amazon, you can take advantage of their free shipping offer). If you want to read more details of the book and find out about the offer for 4 FREE hours of audio programs if you purchase and register your book click here.
P.P.S... Over the coming months, you are going to hear even more talk about a 'Bubble' and you will hear the masses saying "I will start investing in Real Estate once the market has a correction" ... well, my friends, in certain fundamentally strong regions in Canada you will be waiting a VERY long time for that 'correction'. In the meantime, how much time and equity did you let slide through your finger tips? Quick reminder that ACRE System in Calgary is right around the corner, With the more than 31 forms updated this event will definitely fill up (over 382 already registered). For a $200 discount click here on the following link to read all the details:
P.P.P.S... As real estate investors, we are known targets. That is why there are lots of American "real estate gurus" flying into Canada right now and over the next few months... you'll see the marketing everywhere. It happens every time there is a boom - just be aware and do your homework and focus on what is real, not fabricated. Unbiased fundamentals are critical.
Forward this edition to anyone you know who would like an unbiased look at what's really happening in the Canadian Real Estate Market.
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