Invest Kamloops Newsletter | March 13, 2015 | Vol 2 | Issue 8
I had a great day and no bad luck, I hope you had the same 🙂 Some people might be superstitious about Friday the 13th, so I did some research to see where this idea came from. Here is an article with some surprising facts:
– the plane crash of the true survival story depicted in the 1993 movie “Alive” was on this date 1972
– in the UK there are more car crashes on Friday the 13th
– there are fewer crashes and insurance claims on this date in the Netherlands
– in numerology “12” indicates completeness, so 13 is incongruent
– in the US, a change in behaviour thanks to this date costs an estimated $800-900 million that day
– Finland always holds “national accident day” on Friday the 13th
– there may be some Christian roots to the superstition(although being superstitious is not Christian)
– it is a relatively new western superstition(19th century)
Anyway, here is what I’ve been up to the past couple weeks:
– dropped off more fliers
– had my realtor find me an awesome deal(on the surface, more on that below)
– went to Vancouver twice: learned about a creative strategy Saturday, then an awards night Monday
– only 1 vacancy left!
– writing lots of offers: two private sales in the works
Here is this week’s newsletter:
- REAG meeting/training review
- Invest Kamloops TV – deal of the week #1
- Deal of the week #2
REAG meeting/training review
I missed the part of the REAG Action Weekend Course(friday night), but made it for Saturday in time for a couple fascinating talks on strategies that if properly executed could literally have you “set for life.” One of them is a “simultaneous close” and the other is Rent to Own – but on a very large scale. Here is the basic premise:
– Find a developer in trouble and rent all his units for a bulk discount(he covers his costs, you get cheap rent), with option to purchase. The developer gets to forget about his mistake and move on to bigger fish to fry, you get a deal.
– Set up rent-to-own tenants and give them option to purchase on the same day you would exercise your option.
– Make a spread on the rent(in the example it was 25 units I think and the architect of the deal made $8,000/mo), then make a spread of $10-50K on each unit when option is exercised.
– Use “simultaneous close” to avoid paying property transfer taxes twice(BC), only the end RTO buyer would pay.
Sounds awesome in theory, and the organizers were able to show MANY examples of completed deals in BC, there were recent ones too(from 2014). I have a friend who is trying this same strategy, among others, with apartment/ condo buildings. He has had some success and I know that in 2014 he made $50,000 in real estate income(WAY more than I did!), but he is still waiting to hit the big one that will give him the capital needed to “play in the big leagues.”
I suspect that my tried-and-true buy, reno, rent business model will be surpassed by his creative business model eventually, but in the meantime I am happy to pick up every conventional deal I get. To be honest, every “little” townhouse or house deal I close serves as a nice motivation that I am moving in the right direction.
My friend has nerves of steel, because he has been assembling so many great deals and seen them fall apart time and again, but he keeps persevering! If he just keeps at it I am sure he will get the deal done, he will have bought back his time from his day job, and I will be scratching my head about why I haven’t succeeded yet 🙂
Anyway, all attendees got this cool certificate, I will certainly hang mine up to remind me of all the brain stretching I experienced in only 1 day.
Awards night Saturday:
Many hugely successful investors got awards for deals as follows.
1. Purchase 80 unit building in the US
2. Townhouse deal with no money down
3. Build apartment building in Victoria BC(from scratch!)
4. Development of land in northern BC
There were many others but that is all I can remember off the top of my head. The keynote speaking that night was a large shareholder of a REIT who shared how he helped build the company from a couple buildings in the 1980s to thousands of buildings as of today. It was an impressive talk, but what struck me the most was this:
– the speaker said people/family members asked him why he worked all the time instead of going camping or having fun, he just replied he preferred to work hard acquiring buildings
– thankfully he took a break away from such an active role in the company when he realized his kids had done a lot of growing without him(daughters were 14 and son was 9) and he decided to spend time with them
One of the award recipients(an elderly gentleman who with his wife purchased MANY apartment buildings in BC over the years) also gave this advice: “slow down and enjoy the journey, I wish I could tell my younger self that.” In conversation with another gentleman that night over a beer, he shared that he mismanaged his first rental property because he prioritized going camping/sports events with his kids who are now grown. He then described in great detail how well his young adult children are doing, and he was rightly very proud of them and the memories they created together. “You will always have time to make more money, I bought 18 properties in 2014, but you will never get lost time back with your kids.” He left me with 2 things to do for the next 20 years: go camping(once they are over 3) and pray with your kids. Very cool advice.
Anyway the evening ended off on a funny note:
An older couple who has been married 5x longer than me were telling me a story about how they have to leave the meeting early because they are from out of town and staying with their son who is single. He guards his key jealously and won’t give his mother one no matter how much she nags for it. I joked that it must be because he is worried she might walk in on him with an overnight guest. The couple said with a smile “yeah but that doesn’t stop him from showing up unannounced at our place, we might be old but we still know how to have fun.”
And they walked out hand in hand with a twinkle in their eye.
True story, and I hope my marriage is that good when we reach our golden years 😀
INVEST KAMLOOPS TV
Deal of last week. I have a real sweetheart deal available, I am selling a share of one of my favorite houses. I already have the mortgage, I just need you to write a check and you will get some nice cashflow payments. See the video below.
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. Are you… – 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.* – Sam *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 cashflowing investment! Full duplex with huge rear lot for potential future subdivision(with restrictions). I had an accepted offer but let the deal go because of it being within the 200 year floodplain. As a student rental this place would gross $5000 easy($500/room), not bad for a $400k investment.
Normally 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 by clicking 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.
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 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”,
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 who’s members have purchased over $5B of real estate. Sam’s experience includes two years of university at UBCO, a carpentry apprenticeship, 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.
Minimum capital required to work with Sam is $150,000 unless you wish to buy part of an existing deal, I currently have one for sale for $40,000. Your ability to qualify for mortgages would also be an asset. Your investment is RRSP eligible.
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.