Invest Kamloops Newsletter | Feb 14, 2015 | Vol 2 | Issue 5
Happy Valentine’s Day!
Today I was treated to a special floral display by my wife and kids.
I hope you were treated special by someone today, and if not give me a call and we can go to coffee – my treat!
Anyway, here is what I’ve been up to this week:
– printed fliers to canvass my target neighborhood offering to buy homes there
– made offers in my favorite townhouse complex(one a private sale and one has been listed for a while so the price should be good)
– had my 3 previous offers the week before rejected(that’s ok, perhaps I will buy them for $10K less next year, like I did with properties #5 and #6 in my portfolio. Sometimes people need to spend more time on the market to get in touch with reality.)
– went to a REAG meeting, great content and I’ve shared it in the article below
– had an awesome time in Vancouver: helped celebrate my aunt’s 50th birthday, met with an investor client, spent the night at the penthouse suite at Sylvia’s overlooking English Bay(bummed a spot on the Murphy bed from my sister)
I hope you had a great week too. Here is this week’s newsletter:
- REAG meeting review
- Here comes the construction boom(home prices are next)
- Invest Kamloops TV – why a coach is so important
- Deal of the week
REAG MEETING REVIEW
The Real Estate Action monthly meeting was a great time, plus there was tons of awesome information. Here is a brief summary of what you missed:
Marc Jurock gave a great presentation on the importance of following your building’s depreciation report – for strata owners this is of great interest and I will be elaborating on this in the future and giving a similar presentation at this year’s Annual General Meeting.
Lead with the truth:
Conversation guru Eamonn Percy gave an insightful talk about the importance of conversations within a real estate business. There are 10 things to remember when engaging in a critial conversation, and you can read them here.
Work on smiling:
A German study from the 1980s found that people who forced a smile actually became happier. Try it yourself: hold a pencil in your lips(it forces you to frown), then hold the pencil in your teeth(forces you to smile). Besides lifting your mood, it will make others more receptive to you and this will in turn lift your mood even further. A useful lesson because people only want to do business with people they like and respect, so smiling goes a long way(even the fake kind).
The deflation myth:
Ozzie Jurock spoke about how the media has over the years been featuring pundits who speak at length about deflation. He showed slides of books and headlines released for the past 50 years talking about another great depression, and how time and again these pundits have been wrong, there has been the opposite inflation(good for real estate).
I wholeheartedly agree. Check out this recent release from Stats Canada.
As you can see, the Consumer Price Index has increased on average 3.197 per year for 100 years. So if a basket of goods cost $1000 in 1914, today it would cost 319.7% more, or $4,197. This “basket of goods” gets changed all the time, so this is not the most accurate measure of inflation, real inflation is much higher For instance, “a loaf of bread that cost 6 cents in 1914 now goes for $2.92″ (Source), a 4866% increase and much higher than the CPI of 319.7% we would be led to believe.
In any event, whether you believe CPI to be accurate or not, inflation is the obvious trend over the past 100 years and will continue for the next 100 years. You can play around with the inflation numbers for different years at this handy inflation calculator.
18 ways to get more done:
Ralph Case provided a key insight into how he gets so much done, and yet has leisure time and time with his family. Awesome stuff, you will want to check it out.
HERE COMES THE BOOM
“Strong start to 2015 construction year”
“Multifamily construction boom continues in Kamloops”
When headlines like this start to show up, I know the market is about to take off. I am happy on one hand, however I am disappointed I have not yet bought more.
INVEST KAMLOOPS TV
You can’t hear it, but every time I’m about to give up, my daughter is yelling at me “again!” I know I would not have been able to do so many without her driving me to do more(or without the dog licking my face).
Coaching is very important to meet and surpass your goals, otherwise you will give up way too early! If you need help getting over a hurtle, read on, maybe I can help.
DO YOU NEED REAL ESTATE ADVICE?
“When you get too busy, raise your prices.” – This is a lesson I just in time from a mentor of mine, and it undoubtedly saved my sanity. That’s why I am not offering 1 on 1 coaching anymore unless to very qualified clients.
– seeking a good real estate investment?
– 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 have dealt with private sales, multiple offers, negotiations, evictions, filling vacancies, and every tenant situation imaginable. Since my personal services are in very high demand, consulting rates are $150 for a laser focused 15 minute in person or phone session, to a maximum of four consecutive sessions.
Book a FREE, no obligation, 15 minute phone call with me to learn if we can work well together. Call 1.888.532.7660 or email email@example.com.*
*When requesting a phone call, please provide as much information as possible. A detailed summary with the complete circumstances will ensure I can best help you quickly.
DEAL OF THE WEEK
This week’s deal is a great investment! A unit in a complex I already own in, and I am on strata council. Here are the numbers:
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.
You can see what a full proforma looks like by clicking here: 724 Battle Street.
There are simply too many good deals in Kamloops for me to capitalize on all of them(for now). 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.
Since I am doing deal analysis on an ongoing basis anyway, I may as well help you when searching for your next property in Kamloops.
The value of these analysis?
Well, if I could purchase them all, each one could be worth $750/mo(the REAL 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 access to the password protected site area “Deal of the Week”, PLEASE SUBSCRIBE.
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.
Please sample the October 2014 Mastermind call from a successful REAG member with a deep well of experience. It was a pleasure to interview this gentleman: Mel Johnson Interview
Sam Perren is a Real Estate Investment Advisor, Family Man, Published Author, and works as a Police Officer. Sam has purchased over 2 Million dollars in residential real estate, and is a member of mastermind networks with members who have purchased over $5B of real estate. Sam’s two years of university at UBCO, a carpentry apprenticeship, and more than seven years law enforcement make him at expert in tenant relations. Sam successfully completed the Canadian Securities Course, 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 opportunities to work with Sam are limited, and interested parties are required to apply here.
Minimum capital required to work with Sam is $150,000 unless you wish to buy part of an existing deal, one for sale starts at $40,000. Your ability to qualify for mortgages would also be an asset. Your investment may be RRSP eligible. Cashflow ranges from 5-10% ROI on each deal, once you get all your money back we split profits.
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 firstname.lastname@example.org.