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Well, that was fast!

It seems like I was just writing last week’s newsletter. Here is what is new with us:

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There was playing outside while planting last minute bulbs(my job since the ground was frozen).
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Marcy and Livy cleaning the first snowfall.

This week I also filled a basement vacancy and increased rents by $175(18%). This is lower than the $250(26%) increase I had previously announced, but 2 sets of prospects had backed out after paying a deposit upfront, so when the perfect candidates came along I jumped at the opportunity and gave them a deal to get a commitment.  Not a bad increase for December 1st move in, and truly a win/win.  They get a great place to live at a mid market rent, and I get great tenants who signed a six month lease.

Tip: always get your leases to end in the summer month, there is more demand and rents can be priced higher.  The reason I had to fill this vacancy in the winter is that my long term tenant gave notice to move in with her boyfriend.  

Here is what is in this week’s newsletter:

  1.  Feature blog post – “7 Reasons the CSC Will Make You Run to Real Estate”
  2. November 2014 Economic Fundamental Update for Kamloops
  3. Article: Headlines discouraging you from investing?
  4. Deal of the week: analyzed, researched, and ready to buy!

FEATURE BLOG POST

7 Reasons the CSC Will Make You Run to Real Estate

In the pursuit of wealth, most are naturally drawn to the financial industry.  After all, financial product advertisements and financial news can be seen everywhere!
There are magazines, blog posts, and 24/7 TV shows(I confess I used to watch the “Lang and O’Leary Exchange” daily, and was excited when Kevin came to Kamloops).  The business section of newspapers are dedicated to the financial industry.

The amount of content out there is overwhelming, with more opinions on finances than options!

After mucking around with the noise in the media for a while, I decided to get educated.

I frequently say the Canadian Securities Course(CSC) is the best $1000 I have ever spent.  I’ve learned what the financial industry is, how it works, and most importantly, how it affects middle class working people like me.

…(click here to avoid losing money)

INVEST KAMLOOPS ECONOMIC FUNDAMENTALS

I detail the coming boom in Kamloops(and why we are in the middle of the Recovery Phase of the real estate cycle) in a recent article you can read here.

I will be publishing economic news here and putting it in context on at least a monthly basis, so if you have not yet subscribed, please do so and keep up to date on the Kamloops markets. You will be glad you did!

Some samples from the Nov 2014 issue:

The Interior Health Authority spends $10M per year on laundry!

Besides the ongoing cost of laundry, IHA is facing a $10M equipment upgrade, so is looking to contract out laundry services, potentially phasing out 175 union jobs throughout the region(15 of these jobs are in Kamloops). If this happens it will be sad for the employees, however Kamloops will likely see MORE jobs as result since any contractors would likely set up home base in the transportation hub of the interior: Kamloops. I will watch with interest and keep you posted.

171-million dollars in building permits in Kamloops so far this year

This is a 23-percent jump over the same time period last year.

Canada’s smartest person is from Kamloops

Ok this is more for fun than anything, I promise Canada’s smartest person is not me, just click the link to read all about Kamloops’ newest claim to fame.

…(Read the rest of November’s Economic report on Kamloops’ here).

ARTICLE: HEADLINES DISCOURAGING YOU FROM INVESTING?

“Inflation projected to be 0.6% – CMHC Forecast”

After a friend of mine (who also happens to be a successful Kamloops Realtor) shared this bit of news that he had heard on the radio, I was perplexed.  I found the news opposite to what my 5+ years of research was saying, so I asked for the link to dig deeper.  I got the link last week,(thanks Aaron) and got to dig into the media statements a bit.

The Claims

The actual headline is Kamloops Real Estate Remains Flat – “Numbers provided by Kamloops and District Real Estate Association and Central 1 Credit Union show sales growth in the Tournament Capital is flat, with housing prices largely unchanged since 2010.”

The Facts

This article is talking about short term sales growth, not the long term picture that sophisticated investors look at.

I detail the coming boom in Kamloops(and why we are in the middle of the Recovery Phase of the real estate cycle) in a recent article you can read here. Highlights that prove we are in the recovery:

…(Read full article here)

DO YOU NEED REAL ESTATE ADVICE?

Due to an overwhelming demand for consulting services, I am limiting new clients.

Are you…

– trying to decide if Real Estate investing is right for you?
– struggling with a nightmare tenant?
– thinking about selling?

If you have a real estate problem, advice from a third party can be invaluable. I have a solid consulting track record and has dealt with evictions, filling vacancies, and every tenant situation imaginable. Since services are in high demand, consulting rates start at $100/hr.

Book a FREE, no obligation, 30 minute phone call with me to learn if we can work well together. Call 1.888.532.7660 or email sam@investkamloops.com.*

– Sam

*When requesting a phone call, please provide as much information as possible. A detailed message or email complete circumstances will ensure I can best help you quickly.

DEAL OF THE WEEK

This week’s deal is a great one, here are the numbers:

Purchase: $289,900

Reno(add basement unit): $55,000

Rents: $2900

Cashflow: $800/mo

Working Capital needed: $113,000

Total Investment After Refinance: $66,500

ROI: about 14% per year in Cashflow alone on year 1(with 30yr 2.6% mortgage).

To get full pro forma with the address and detailed numbers, you must either be on my investors list by clicking here, or be a paid subscriber(I am practically giving these away.) You can see what a full proforma looks like here: 724 Battle Street.

There are simply too many good deals in Kamloops for me to capitalize on all of them. As result, I will be publishing my proforma reports and the plans I would carry out on these properties to produce the double digit returns I talk about on this website.

Now, since I am doing deal analysis on an ongoing basis anyway, I may as well help anyone who is searching for their next property in Kamloops. The value of these analysis?

Well, if I could purchase them all, each one would be worth $1000/mo(the cashflow of my most recent deal). Since I cannot at the moment purchase them all, you can have them for $7 each.

Why only seven dollars when I spend at least two hours per week on my initial due diligence? Because I want to make sure the opportunities I find benefit you, my loyal readers.  If you can make money with a property I find, that makes me happy.

If you would like to subscribe to the password protected site area “Deal of the Week”,

PLEASE SUBSCRIBE

INTRODUCING: Invest Kamloops Interview Series

The Invest Kamloops monthly interview series features successful business owners and investors who are benefiting from the Kamloops economy.  You will learn the secrets to their success, and specific strategies to implement.

Whether you are just starting out, or have been investing for a while, the stories here will inform and inspire.

 These interviews will show you what small changes in your life will produce big results.

Here is the October Mastermind call as a sample: Mel Johnson Interview

Subscribe to the monthly interviews, your rocket fuel for success! 

ABOUT

Sam Perren has purchased over 1 Million dollars in residential real estate, and is a member of Mastermind Networks who’s members have purchased over $5B of real estate. 

Sam’s education and experience includes two years of university sciences at UBCO, two years of carpentry, and more than seven years law enforcement. Sam successfully completed the Canadian Securities Course in 2011, a credential required for all financial advisers.

Sam is growing his portfolio using the S.A.F.E. principles he developed, and has been creating double digit returns using Real Estate since to the delight of his partners since 2009.  Sam is seeking more investment partners, however due to time constraints, opportunities to work with Sam are limited.  To learn more about the S.A.F.E. business model, and see opportunities available right now, click here.

Sam lives and invests in Kamloops BC, and can be reached at 1.888.532.7660 or at sam@investkamloops.com.