Monthly Archives: November 2009

Private Money Blueprint Winner!! Congratulations

Private Money Blueprint Winner CelebrationOk… so this didn’t get posted on Friday like I’d promised … but we ended up spending 10 hours hunting for new investment properties.

Along with driving by half a dozen potential deals we’re looking at, and spending 2 hours really getting to know a small area within Nanaimo, we looked at 2 foreclosed properties …

Both properties have potential to be good buys, but the one is priced at market and yet it needs $20,000 in upgrades. The other one, however, has the potential to be a fantastic buy and hold property.

It’s priced about $30,000 – $50,000 below it’s market value (after some minor finishing touches) so it’s interesting to us. But because it’s priced so well there are going to be quite a few others at court on Thursday that are also interested in this deal.

We like the area it’s in – a lot – but we’re currently running the numbers to figure out the maximum bid that makes sense for us and determining if we have the private money available to us to be able to bid in court on Thursday.

Anyway – Friday turned into a gigantic adventure in real estate hunting and we were in desperately need of a day to recharge so we took Saturday off from all computer and real estate based activities …

Which brings us to today…

<…DRUM ROLL…> The fifth and final winner of the Private Money Blueprint is Heather Moncur

Congratulations to Heather Moncur - our fifth and final winner of the Private Money Blueprint!

If you’re wondering what exactly the 5 Winners of the Private Money Blueprint are getting I created a super short video showing you the program (because we’re using it ourselves – it’s awesome Patrick & Trevor!). You can check that out here:

Special thanks, once again, to Patrick Riddle for hosting the Battle of the REI Blogs 2009, and for sharing 5 copies of the Private Money Blueprint with our readers!!

And by the way … I’ve made arrangements with the Vancouver SPCA to donate $500 to their Biscuit Fund. They are going to send me a special letter to share with all of our readers as a thank you. And … in case you missed the announcement we’re created 31 Videos as a special thank you to everyone in our Rev N You family. We’ll be sharing those with our Rev N You with Real Estate Newsletter readers starting January 4th, 2009 so if you’re not a newsletter subscriber you’re going to want to sign up before then so you don’t miss a single video!!


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Filed under real estate

Real Estate Investment Analysis Made Easy

by Dave Peniuk

There are plenty of real estate investors that don’t use any spreadsheets or financial calculators to figure out if a property is a good one to buy or not. And with simple rules of thumb like our 1% rule you don’t necessarily need them. But I’ve been doing dances with spreadsheets since I began.

And, I think that doing some good solid analysis on a potential rental property serves many purposes:

  • You can’t get as emotional about the decision if you let the numbers guide you. The numbers either work or they don’t. It doesn’t matter how much you love the property if it doesn’t generate enough cash flow to cover it’s costs and give you a return then it’s not a good deal.
  • Knowing the variables that go into calculating the numbers allows you to identify areas where you can make more money. For example, if you can lower the financing costs or decrease the insurance you can increase your return. These are things you might not see clearly without a spreadsheet in front of you.
  • Allows you to speak and present professionally to your partners, realtors, mortgage brokers and lenders. Nothing like a concise and simply one page summary of the numbers on a property to make someone understand what you’re doing and want to work with you.
  • If you do analysis over time, it allows you to spot trends with your expenses. You can go back and look at your property’s performance over time and find areas to improve it.

Up until now I had created all of our spreadsheets myself. Well, actually Julie programmed the mortgage calculations into a spreadsheet for me but otherwise I created them all myself. And I like them. But they are a bit complicated and definitely not that pretty looking. So when I had the opportunity to test out RealData’s real estate investment analysis software I jumped at it. We’d interviewed the creator and founder of RealData, Frank Gallinelli, in a  teleseminar a few months ago and he invited us to check out his programs.

Anyway – Julie says I need to create a shorter summary version video instead of the long tutorial like videos I have for you here… but maybe if you’re a detailed kind of person like me you’ll appreciate seeing all the nuts and bolts!! 🙂

The bottom line is that the RealData Standard Edition product is excellent but pretty comprehensive for most residential real estate investors. Why not save yourself $375 and just get the Express Real Estate Analysis package? It’s got everything you need and more – and for Canadians – it’s even all set up for us with the right amortization tables!!

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The links taking you to the RealData products are in fact affiliate links… and if you choose to purchase the product through those links we will make a small commission for our referral. However, we wouldn’t be recommending it if we didn’t think you’d be smart to buy it!! 🙂 The Express product is great – and would be a good addition to any real estate investors tool box of resources.

And of course, if you have a problem with the software and the folks at RealData don’t help you out let us know… we know the President of the company. 🙂

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Filed under investing, real estate, Recommended

Flavour of the Year in South Florida Real Estate?

by Dave Peniuk

I find myself all excited by the prospect of buying real estate in Florida. If it weren’t for the fact that it’s a pain to get to from Vancouver, the insurance on properties is really high, and the taxes are painfully steep for an out of state buyer I might actually have done more than just look at books, pictures and listing sheets on my recent trip. The fact is, I like it there, and it’s easy to get excited by South Florida real estate because it seems like it’s ‘on sale’.

Even on a windy day I think South Florida is beautiful

Julie and I have been there 4 times over the past 2+ years, not for vacations, but rather for various conferences we’ve attended.

And while it would’ve been nice to have enjoyed all the spectacular beaches, Mexican and Cuban restaurants and fun dance clubs to get a real feel for SoFlo (I don’t know if that has been termed before, but I am officially calling it SoFlo!), we still have had some time to enjoy all the eclectic areas from South Beach all the way up to Delray Beach.

But the one thing that excites me the most is the “sale” of Florida real estate.

Now, to be frank, there are still a derth of high end luxury homes all across the South Florida real estate market. There are $1MM, $2MM, $5MM, and even $15MM homes all across this area of Florida. It makes my hometown of Vancouver (largely considered one of the most expensive places to live in the world) seem like a bargain! But what I am finding now is that the “affordable” places are now pretty darn cheap in comparison to 2 years ago (Oct 2007) when we first visited this lovely place.

After scanning through “The Real Estate Book” and “Homes & Land of the Palm Beaches” – two free magazines that show you all the deals, foreclosures, preforeclosures and now SHORT SALES available across Palm Beach County – I have found a considerable number of affordable bungalows, townhomes and condos all in decent areas (from my little research I have conducted) and many only a hop, skip, and a jump from the beach.

<This was confirmed when we met with Shae Bynes of Good Faith Investing. Check out the video Julie filmed with Shae.>

The other interesting finding I observed from leafing through these listings magazines is the number of times that “short sale” is used in the listing!

Two years ago when we first started looking at real estate in SoFlo, you rarely saw the phrase short sale in these magazines.

You saw terms like “pre-foreclosure”, “bank owned”, and “REO”, now, the realtors can’t get enough of short sales. My favourite use of the phrase is “priced as a short sale”.

Oh, and there are Short Sale Specialists now! Now, forgive me for being ignorant (we don’t have short sales in Canada), but have short sales not been around for many years? Why is it that it’s all the rage now (I guess because banks/lenders are more willing to entertain it as there are more borrowers under-water than ever before – oh, I guess I answered my own question!)?

So What Is the Difference between a Short Sale & A Foreclosure?

I had to ask JP Moses over at REI Tips to make sure I didn’t steer you wrong … and he said:

A short sale is in essence a lender agreeing to settle for less than what’s owed on a property.  In order to approve of it, the lender would have to be convinced it’s in their own best interests to do so.  Sometimes it is and sometimes it isn’t.

Basically a preforeclosure seller gets a buyer (often an investor) who’s willing to buy but is only willing to pay $X, which is less than the mortgage balance.  The owner and potential buyer then make their case that it’s in everyone’s best interest (including the bank’s) to go ahead and let the property sell now for a discount than to foreclose and let it become a negative asset for an extended period of time as an REO.  If they bank agrees and the stars align, then a short sale is approved.  The seller will typically get either a 1099a or a deficiency judgment for the amount of the discount granted.

This would all take place prior to the actual foreclosure, while the property’s still in pre-foreclosure status.  Once the foreclosure sale takes place, a short sale isn’t possible – the bank already owns the property and it would move towards being liquidated as an REO.

I can’t wait to see the next HGTV show called: “Susan and Sam – Short Salers from South Beach“. It will last for about 1 season, then the real estate market (and lagging news reporters and media) will find some new term/phrase/new fantastic-never-done-before-strategy that will come to a television set near you! Okay, I digress.

The point I am trying to make, although in a very round about way, is that real estate is not a phase, it’s not a fancy multi-million dollar making “hip” strategy, it’s not what any of these television shows, news reporters, or even realtors considered “on sale now” and the “best opportunity in your lifetime”, it’s an investment that needs to be researched, planned, and taken care of.

And while the SoFlo market could be considered “on sale” at least when compared to the past several years, please don’t think that just by buying something called “priced as a short sale” means you are going to flip that property for $50,000 profit within 2 months UNLESS you know what a real deal looks like and you know what you’re doing.

There is a never-ending barrage of real estate guru’s who tell you they can teach you how to make thousands if not millions in these quick, easy, simple, “passive” real estate strategies. But don’t be fooled. You won’t make a crapload of money just by reading a book or attending one seminar. But you might make a lot of money if you actually “work” at what you are learning. As Julie and I always say, real estate investing is simple, but it’s not easy.

So, when you get all excited about the “cheap” real estate out there. Whether it’s in SoFlo, California, Las Vegas, or anywhere in between, just remember you have to work at it if you want it to be a real investment.

And now that I am back in Vancouver, I’m content to continue shopping for real estate in my local markets. The weather isn’t as warm and there aren’t as many lovely beaches but at least I won’t have to spend 12 hours traveling to see the properties!

If you would like to learn more about real estate investing in the Florida market we highly recommend you check out our blogging pals Steph Davis and Shae Bynes. We think you’ll really like their deal updates and other great posts they share over at their blogs!

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Filed under Blogs, investing, real estate, Recommended

4 of 5 Private Money Blueprint Winners … Will You Be #5?

by Julie Broad

When I was crowned the Battle of the REI Blogs Champion I wasn’t the only winner!

I was given 5 Private Money Blueprint programs that I could give away to people that voted for me! That is not a small prize my f riends. Private money is a critical piece to the real estate investing puzzle these days. We’ve always used private money to help us with financing parts of our deals but these days it’s often the absolute best (and sometimes only) source of reasonably priced financing you’ll find. So this prize is something that can really help you!!

So… we went through all the votes we received in the contest and randomly drew from the voters. We  selected 5 winners … but one of the winners has failed to claim their prize so we’ve decided to give it away to one of our valued Rev N You readers!! Here’s how you can win a copy… (by the way … it sells for $697 and really it’s actually worth way more than that. By following the tips, resources, and advice in the program could help finance or complete your next deal! And learn how to save the effort and paperwork that a bank requires!).

To enter the contest for a copy of the Private Money Blueprint:

Post a comment at the bottom telling us what you want to achieve and how the Private Money Blueprint program will help you reach your goal!

It’s simple … a sentence or two will do. We just want to make sure that you’ll use this program. We’ll get Patrick Riddle to select his favourite 5 entries and then we’ll randomly draw from those 5.

DEADLINE: November 24th at 5pm EST

At that time Patrick will make his selections and we’ll do the random draw. We’ll announce the winner on November 27th here on the blog.

Sound good?

And now… for the OTHER 4 WINNERS of a COPY OF THE PRIVATE MONEY BLUEPRINT.

<drum roll please……………..>

 

 

Brian Dolan of Owen Sound, ON, Canada

Zimbabwe Real Estate Millionaire Student Monica Mutuma

The other two winners were camera shy... Murray from Point Roberts, WA, USA and Sam Ahmadi from Coquitlam, BC, Canada

Congratulations to the winners!

And – thanks again to everyone who voted me in as the Champion of the 2009 Battle of the REI Blogs!!

We will be presenting the SPCA Biscuit Fund with a $500 donation very soon!! Stay tuned…

Now… head on down to place your entry for your own copy of the Private Money Blueprint!! You have until the 24th of November to be entered to win!!

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Filed under Blogs, Just For Fun

Losing friends

by Dave Peniuk

I struggle.  I really really struggle.  I struggle with the fact that I need to change. Not just who I am and what I have done over the years, but also with who I hang out with. Who I call or email on a daily or weekly basis.  You see, I have heard many times from all the really successful entrepreneurs and business people out there that if you take the 5 or 6 people that you spend the MOST time with, you basically add up to the average of those 6 people.

Now, think about that.  Just take a second and really think about those 6 people.  And I don’t suggest you count your closest family (spouse, kids, family pet) members. Think beyond that. Also don’t include your co-workers because, really, they probably don’t count all that much in your “grand scheme of life”.  But, if you think about the 6 people beyond those parameters, you probably do add up to their average. Is that a good thing? Is it a bad thing? Well, let’s not judge whether or not it’s a good or bad thing, but let’s just think whether it is helping or hindering where we want to be in our own life. After Julie and I spent quite a bit of time at several conferences/seminars we asked ourselves this very question. Now, I am the one that “hangs onto my friends” a little more than Julie does. Why? Probably because I am okay with talking on the phone. Julie, on the other hand, would rather take a small mallet and repeatedly hit her kneecap than talk on the phone ( yes, it’s THAT bad). So, it was I that had to figure out whether I would hold myself back by mostly continuing my association with ol’ time friends that really had little to do with what I want to do with my life.

So, where am I? Well, so far I am working towards focusing on spending more time with people/mentors/friends that I want to be more like. I am spending more of my time following real estate investors that have like-minded strategies and that I appreciate and can relate to. It’s not to say that I will stop hanging with my friends that are going in an opposite direction than me. But rather, I will make a more concerted effort to spend more time with people that are moving in the direction that I am moving.

Why? Because if I want to be the “best that I can be” (to steal a line from the army/navy), I have to surround myself with friends/people that are moving in the same direction. This is the absolutely the BEST way to help you achieve your ideal me.

Fishing trip with Dad

Beautiful sunset north Vancouver Island - on fishing trip with my Dad

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Filed under Personal Development, real estate

Real Estate Investing without Tenants, Toilets, Repairs and Property Management!

We’ve never really considered land for our real estate investments. We always thought land investing was a waiting game. We thought it was essentially buying a piece of land and then waiting for it to appreciate or for the time when rezoning or redeveloping the land makes financial sense. In the meantime you have taxes and mortgage costs to pay down. And, I still think that is often how people do it. I know that is how many residential developers and home builders do it.

For us, investing in land has been a matter of buying pieces of property with little houses on them.

We didn’t buy the properties because we loved the houses or because we were going to make good money from the cash flow they generate – we bought them because there’s enormous redevelopment potential for that street and the little homes on the land will pay the land holding costs while we wait to buy other properties around those two lots and the time is right to redevelop.

We’re not putting cash in our pockets from these properties but we bought them for nearly no money down and they aren’t costing us anything to hold while the mortgages are getting paid down.

But, there is a lot of appeal to buying land.

There are no tenants, toilets, property repairs or management issues to deal with. There also is a lot of flexibility in what the land can become – if you buy the right piece of land.

So… when I heard about Jack Bosch and his land expertise I started to look into what he’s been doing. I’ve been going through his course called the Land Profit Generator and I shot this little video to tell you about some of the free information you can get from Jack. If you’re like us, and you’ve always thought land was a tough way to make money as a real estate investor then this is definitely worth checking out.

I will try and shoot another video later this week that is about his program … but for now, just check out the free Land Profits report and the videos Jack is sharing with everyone.

Land Profits Report

And… just for fun… here’s a few pictures from the Chris Evert Pro-Celebrity Tennis Event we attended in Delray Beach this weekend. Celebrities like Elisabeth Shue, Gavin Rossdale and Martina Navratilova were playing tennis for charity yesterday. And, Jon Lovitz was on hand to provide a ton of entertainment (and actually, Martina Navratilova was pretty witty herself!).

Julie and Dave Chris Evert Tennis

Martina Navratilova

Martina Navratilova serving

Shue Seles Rossdale Evert

Elisabeth Shue with Monica Seles vs. Chris Evert with Gavin Rossdale

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Filed under investing, real estate

Take Action

This is a guest post by fellow Canadian Marc-Andre Terriault

Take ActionA lot of people don’t realize how taking action is part of their daily lives. It’s basically found in everything you do… When you get up in the morning, you’re taking action. When you walk over to the bathroom, you’re also taking action. When you brush your teeth, you guessed it, you’re taking action. And these actions that you take can go on and on for the whole day. The reason we don’t realize this is because we have formed a habit of doing them.

And I can guarantee that these actions you have taken for so many years are not doing anything for you. Why? You have unconsciously programmed yourself to constantly do those actions.

What you need to do in order to find success in your life is to start by taking precise action to achieve the goals that you set out for yourself.

Now, let’s look at an example: if your goal is to run a marathon, then the actions that you need to take have to be specifically related to that goal. Some of the actions that you may take include: Running three times a week for 30 mins, stretching, weight training etc. But these actions cannot be done automatically; you must make a CONSCIOUS effort. That is what makes the difference.

Another example would be investing in real estate. Here’s a quick list of some of the actions that you would take to find success: searching for viable investment locations, considering which properties would be best for your system, making an offer, closing the offer with a lawyer, finding a tenant, etc.

You see, success is directly related to the action you take toward a specific goal that you have.

But the most important thing about taking action is taking action on taking action. I hope I didn’t confuse you. But allow me to explain. When you decide to take action you’ve accomplished the very first step which is very good but in reality this is the second most critical part. The most critical part is actually doing what you said you were going to do.

Now when it comes to “the most critical part”, a lot of people have the same excuses. Right from the start they give themselves a reason why they can’t be successful. And I hear the same ones time and time again. The two most popular excuses are: I don’t have time or I don’t have any money!

That’s when I ask them specific questions related to the goal that they may have. Questions like: “so why don’t you wake up 30 mins earlier in the morning to go and run?” or “Why don’t you look for some investors to help you purchase a property?”

When I listen to their answers, I always hear more excuses. And that tells me that these people are not ready to find success. Even though they say they want to accomplish a particular goal, deep down they don’t want to take action to actually find success.

Things in life don’t just happen; the great physicist Sir Isaac Newton once said: “for each action there is an equal re-action”. This rule also applies in the opposite direction. Tell yourself: “When I do nothing, nothing happens” (action = doing nothing, re-action = nothing happens).

After reading this I hope that you can really understand the meaning of “Actions speaks louder then words”.

So the next time you feel that you are not finding success in your life, ask yourself “what specific action am I taking towards accomplishing my goals?”

CHEERS TO THE GOOD LIFE!

If you like what you just read then you’ll love the information that Marc-Andre provides in his e-book title “It Starts Here: Discover How You Can Find Success in Your Life

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Filed under Guest Articles, Personal Development