Invest Kamloops Newsletter | June 6, 2015 | Vol 2 | Issue 11
Start children off on the way they should go, and even when they are old they will not turn from it.- Ancient Proverb
I’m very proud of my little girl! She has been brushing her teeth(very vigorously) ever since I showed her how, and she was very patient with the dentist yesterday 🙂
She passed with flying colors and although she was nervous she even got her teeth painted. Of course credit is owed where it is due, so thank you very much to Dr. Michael Hansford and his team. Our last visit included a ride in the chair, playing with the water squirt gun, rubber glove balloons, and prizes, so I am sure that helped in getting my 2yr old to sit still this time around!
Although Landen was not interested in “saying ah”, the issue was not forced so there was no negative experience for him either.
Funny how kids can totally change what you occupy yourself with, who knew I could be so happy about a dentist 🙂
Anyway, here is this week’s newsletter:
- Canada or the US? Expert opinions revealed.
- Invest Kamloops TV – My latest townhouse – video tour and the numbers
- Deal of the Week
Canada or the US? Expert opinions revealed.
This is a post I had drafted a just over a year ago. I was looking for content for today’s newsletter and thought it would make some interesting talking points.
When I was at the ACRE weekend in Vancouver November 2013, I talked to several investors who are working in the United States, including the guy who literally wrote the book.
One of my goals for the weekend was to speak with Richard Dolan and pick his brain. I did not get any one-on-one time with him, but even better I got to speak with his advisor!
David Franklin is a securities lawyer and a very wise man.
He said in deciding whether to invest in the United States or in Canada, you need to make things equal. Take your annual rents, and divided by the purchase price of the house, the full purchase price not the down payment. I described the recent deal where my annual rent divided by the purchase price equals 3%.
Invest Kamloops TV
My deal of the week last week was a townhouse that is very similar to a deal I just completed. I did a tour two weeks ago prior to the renos being complete, so here is a video tour now that it is done.
And here are the numbers in case you are curious:
Do You Need Real Estate Advice?
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*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
Here is a sixplex deal that “just hit the market.” Actually, it’s been for sale since April 2013, just removed and re posted so the sellers don’t look desperate.
The story here is that the sellers overpaid at the time(last year the sixplex next door unit sold privately for $600,000), then had a flood. The insurance company found asbestos in the floors so had to re mediate, they ended up pulling permits and the city found that this legal fourplex is in fact a non conforming sixplex(has been for years).
I believe the city has approved this building use as a sixplex, but it needs significant renovations to meet current building codes, and the work needs to be completed prior to the “open permit” expiring(2016 I think).
At a current asking price of $675,000 plus ~$100,000 renovations, this could be a good long term play if you are starving for yield. Not sure how the owners are faring, they are very slowly completing the cheaper renos so I suspect they don’t have the capital to complete them all at once. As the renovation dealine approaches they have reduced the asking price by $25K so perhaps they could be squeezed for more.
This is a “B Class” neighborhood and a completely remodeled sixplex in an “A Class” neighborhood recently sold for over $1M. Anyway here is the listing info:
Open permits with city for fire proofing, rear parking lot, install separate heating units, etc… Building has a time limit for work to be completed, as deadline approaches owners may get panicked and reduce price. Non conforming sixplex will be allowed to remain, however if destroyed only a fourplex will be allowed to be rebuilt. May qualify for commercial financing. Further due diligence required, but on the surface a good long term hold with better cashflow than a GIC and good potential for appreciation. Partner with Sam or go it alone, listing information provided by Gordon Ballantyne (250) 299-9944.
Besides this one, I have a couple deals in the works. You see a conservative return of at least 10%/yr in a joint venture with me, or less if you wish to loan money instead(registered funds are eligible).
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(you can get a share right now for only $40,000). Your ability to qualify for mortgages would also be an asset. Your investment is also RRSP eligible.
Sam lives and invests in Kamloops BC, and can be reached at 1.888.532.7660 or firstname.lastname@example.org.