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KatSid
Housez Inc.

www.housez.ca

The Investor's Housez
Monthly Edition

April 2006                                                                                                                    Volume 2, Number 4

In This Issue

·    REIN Quickstart

·    Hot Properties

·    Prices

Real Estate Links

Stef Lukas, our Realtor

Nikki Harrison, our Mortgage Broker

The Real Estate Investment Network

The Multiple Listing Service

 

www.welist.com

Another Listing Service

www.forsalebyowner.com
Another Favorite Listing Service

Contact Us

www.housez.ca

In This Issue

·    REIN Quickstart

·    Hot Properties

·    Prices

Real Estate Links

Stef Lukas, our Realtor

Nikki Harrison, our Mortgage Broker

The Real Estate Investment Network

The Multiple Listing Service

 

www.welist.com

Another Listing Service

 

www.forsalebyowner.com
Another Favorite Listing Service

Contact Us

www.housez.ca

REIN Quickstart

 

Sorry for the delay in this month's Newsletter, but it had to wait until I returned from Toronto. I had been attending a Real Estate conference with over 500 Real Estate investors and the level of excitement was incredible.

The seminar was one of the Real Estate Investment Networks (REIN) yearly Quickstart events. It guides both current and potential members through all the basic steps of investing. We like to think of it as our spring training.

This was my sixth time attending this event (second time in Toronto and four times in Calgary) and as always, it was a great refresher and an incredibly positive motivator. It is very inspiring to meet other people who do exactly what you are doing and succeeding. It creates momentum by encouraging us to continue to surge forward, improving ourselves and our business approach.

This year however, there was one big difference. Ontario investors are starting to understand the buzz surrounding Alberta. It's interesting that you have to leave Alberta to find people who are excited about our province's economy and the future long-term prosperity.

People I spoke to are just amazed with the property value increases and return-on-investments that are occurring in Alberta. In fact, the market has been so dynamic, that the information packages I took to Toronto with me were already remarkably incorrect, but in a good way! The information and figures were current as of 1 week prior, but now they were well below the present values.

We were presenting a property as having a conservative return of 71% over 5 years or roughly 14% per year, maintaining our policy of using ultraconservative forecasts. After verifying the current pricing on the same property, in the same area before I left, our investor will see an immediate return of 33% on the first day of their investment. The value we used was only $105,000, but a property in that complex was listed for $124,000. Even if we only use $115,000 and remain conservative, an investment would show a return of 33%.

I just checked on another property for sale in the same complex which appears to be sold, but a new one is now up for sale; same size, but recently renovated (ours is roughly 50% upgraded) and listed for $149,900. Even if it doesn't go up another penny over the next five years, that is still 16% per year.

Hot Properties 

Longer Term Investments

 

1)     Calgary: Bowness - Investment No Longer Available: JV partnership formed. This is a pending investment which should come due in April or May. The investment amount is $30,000, with approximately a $200 monthly cash flow and a steady appreciation. A conservative projection will be an ROI between 22%-25% return per year with a five year term. Watch next month's Newsletter for further updates. This will be an 8% return, just on the cash flow alone!

2)     Calgary: Forest Lawn - $30,000 outlay on a rental half-duplex in this burgeoning community. This is an Equity Appreciation Investment, which the equity and mortgage will be paid out at the end of the term. The initial funds go towards covering all expenses associated with the purchase and minimal upgrades. The ROI is projected to be 20% per year. Investment term is between five to eight years. Forest Lawn is poised for some huge value increases over the next five years. It is a popular rental market that is easily accessible to the city center. These and other factors are projected to trigger a major transition over the next decade.

3)     Calgary: Pensdale Green - $30,000 cash investment on a rental townhouse located in the south community of Penbrooke. This is an Equity Appreciation Investment with some minimal cash flow payouts. This means the cash flow is paid twice a year and the equity portion will be paid out at the end of the term. The Return-On-Investment (ROI) is projected to be a conservative 18% per year, which could even be greater depending on current market conditions at the end of the term.  Length of term is between five to eight years. This is an excellent opportunity for a first-time Real Estate Investment.

Shorter Term Investments

·         The volume of renovation/flip projects we are seeing is increasing phenomenally. We are actively canvassing for individuals who would be interested in short (six month to a year) investments that pay 15% interest per annum. If you know of someone that this would appeal to, please have them contact us. The more funding we have results in the more opportunities we have to help others make some nice returns.

·         Do you know someone in the Calgary area who wants to sell their home, but it needs a lot of loving care and attention? We have partnered with many other homeowners who have sold their properties to us in a partnership and we have been able to increase the value dramatically, ensuring they receive the equity they deserve.

Investments with us can be registered either on the title of the property, or a caveat can be placed on the property. Both methods ensure that you are protected and help to safeguard your investment.


If you would like more information about investing in Real Estate, visit our web site:

www.housez.ca/Invest/CalgaryRealEstateInvesting.htm

or

send us your address and we will immediately forward our KatSid Investor Prospectus to you

Call Karen or Bill at 880-5256, or email us at info@housez.ca and we will provide you with the information you need today to start your investments tomorrow.

 

Prices

Many people are expecting the bubble to burst soon, after all, how can values continue to increase? Well if you take a look at the fundamentals, Alberta (and yes even Calgary) is still a economical place to live. We earn more money, we pay less taxes, and the average wages are going up here faster than anywhere else in Canada. This equates to prices going up.

Additionally, the shortage of homes for sale compared to the norm (1,000 versus the normal 5,000), an abundance of people moving here (25,000 the last quarter of 2005) and you have another reason why the values have increased so drastically in the last six months. 4,000 new properties will not appear suddenly on the MLS and the people are still going to come, so supply and demand tells us to watch the values continue to grow.

In Closing

Thanks to Kim and Karen for all the extra help on the very late Newsletter this month. Between preparing for an open house in Castleridge April 16th and the traveling to Toronto last weekend, I would never have gotten this out until May without the help! Also watch for some BIG news coming up in May.

Have a great month and we hope to hear from you soon. Remember, if you are enjoying what you read share it with others, if you don't share it with us! Until next month, have a fantastic April and a wonderful Easter weekend.

Bill & Karen Biko

KatSid Housez Inc.

www.housez.ca

Calgary, Alberta

403-880-5256

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