Greetings Fellow REIN Members

  • prairiern

    Status: Forum Member

    Posts: 3
    Joined: 3 Dec 2007
    From: high prairie, alberta

    Greetings fellow REIN members! I just joined REIN in November 2008 and this is my first post. After doing our "due diligence", my husband and I decided on a pre constructed, upper/lower duplex built by Ron and Rod of Compro Developments (affiliated with Harker Homes) in Grande Prairie.

    My husband has been a journeyman carpenter for 40 years and he was very impressed by both the quality of the workmanship and the high end finishing's of the identical unit we viewed before purchasing ours.

    Ron and Rod were great to work with, readily available, generous with their knowledge of construction, investing and the local market. It was a seamless deal and closing (for us anyway!) Final inspection on May 28th and the tenants moved in May 29th.

    Bev Deweese from Exit Realty could not have been more helpful. She kept us informed of all the progress and did some serious handholding when I got the "new investor jitters". Carrie and Jackie, also from Exit PM, have been SUPERB!! They found us wonderful clients, with leases, who are taking good care of our investment. They have also done many extras such as arranging sod care and dealing immediately with the few, inevitable bugs that come with new construction.

    The BEST part is the $650/month average cash flow. This has been such a positive experience for us that we just removed conditions on a second identical unit and we take possession October 28th and we are already negotiating a 3rd!.

    All of the contacts used in these transactions were REIN members, or recommendations of, including our lawyer Tyler Keddie and fabulous mortgage specialist Bettyanne Neufeld.

    I have worked as an RN in ER for 28 years. It has been an unusual experience for me to be the one needing support, care and guidance. The REIN people have nurtured me GENEROUSLY and I am humbly grateful.

    Sincerely

    Jan Robinson

    PS

    Unknown to us when we struck the deal, it comes with a 5 deal cruise as a gift from Bev Deweese!! In February we will start exploring our own personal "Belize".
  • GSI

    Status: REIN™ Member

    Posts: 244
    Joined: 30 Aug 2007
    From: Edmonton, Alberta

    QUOTE (prairiern @ Aug 26 2009, 03:01 PM)
    Greetings fellow REIN members! I just joined REIN in November 2008 and this is my first post. After doing our "due diligence", my husband and I decided on a pre constructed, upper/lower duplex built by Ron Harker and Rod Jebb of Compro Developments in Grande Prairie.

    My husband has been a journeyman carpenter for 40 years and he was very impressed by both the quality of the workmanship and the high end finishing's of the identical unit we viewed before purchasing ours.

    Ron and Rod were great to work with, readily available, generous with their knowledge of construction, investing and the local market. It was a seamless deal and closing (for us anyway!) Final inspection on May 28th and the tenants moved in May 29th.

    Bev Deweese from Exit Realty could not have been more helpful. She kept us informed of all the progress and did some serious handholding when I got the "new investor jitters". Carrie and Jackie, also from Exit PM, have been SUPERB!! They found us wonderful clients, with leases, who are taking good care of our investment. They have also done many extras such as arranging sod care and dealing immediately with the few, inevitable bugs that come with new construction.

    The BEST part is the $650/month average cash flow. This has been such a positive experience for us that we just removed conditions on a second identical unit and we take possession October 28th and we are already negotiating a 3rd!.

    All of the contacts used in these transactions were REIN members, or recommendations of, including our lawyer Tyler Keddie and fabulous mortgage broker Bettyann Neufeld.

    I have worked as an RN in ER for 28 years. It has been an unusual experience for me to be the one needing support, care and guidance. The REIN people have nurtured me GENEROUSLY and I am humbly grateful.

    Sincerely

    Jan Robinson

    PS

    Unknown to us when we struck the deal, it comes with a 5 deal cruise as a gift from Bev Deweese!! In February we will start exploring our own personal "Belize".


    Jan,

    That's an awesome Success Story! Keep up the good work and create that stream of CF.

    Best regards,

    Todd and Danielle Millar

    Glenn Simon Inc.

    PLATINUM REIN MEMBERS

    "Making YOU Successful One Property At A Time"

    Glenn Simon Inc.

    Edmonton Real Estate Investor Blog

    E-mail

    1-888-780-5940

  • vandriani

    Status: REIN™ Member

    Posts: 314
    Joined: 4 Oct 2007
    From: Vancouver

    I have a feeling that there is going to be a post from (I believe) invst4profit questioning you about cash-flow
    Vince Andriani

    VIVO Investment Properties

    V.I.P.-Value, Integrity, People
  • invst4profit

    Status: Forum Member

    Posts: 2,045
    Joined: 30 Aug 2007
    From: Kingston Ontario

    Nope. No point in throwing cold water on what is obviously an exciting time for new investors.

    It is clear my math does not add up to the REIN system. Different wave length I guess.
    But I'll stick with my formula.
    I'll stick around but maybe lurk more than in the past.

    Sorry for hijacking your good news thread.

    Greg

    "An individual must enforce his own meaning in life and rise above the perceived conformity of the masses" (Anton LaVey)

      
  • housingrental

    Status: REIN™ Member

    Posts: 4,655
    Joined: 11 Oct 2007
    From: Waterloo

    Greg you provide a desirable conservative perspective that's needed on these message boards


    QUOTE (invst4profit @ Aug 27 2009, 05:12 PM)
    Nope. No point in throwing cold water on what is obviously an exciting time for new investors.

    It is clear my math does not add up to the REIN system. Different wave length I guess.
    But I'll stick with my formula.
    I'll stick around but maybe lurk more than in the past.

    Sorry for hijacking your good news thread.
    Adam Hoffman - Hoffaco Property Management - Waterloo - Rent / Consult / Manage - http://www.hoffaco.com
  • TodorYordanov

    Status: Forum Member

    Posts: 603
    Joined: 10 Oct 2007
    From: Mississauga, Ontario

    Congratulation Jan! Good for you for taking action and building these positive relationships and team. Having the demanding and incredibly difficult job as an RN and also thinking "outside the box" and doing something like that is great.

    Can you provide few more details on the purchase? Purchase price, downpayment, other montly expences, rent etc. As you know there are few different ways to calculate cash flow and I am just trying to figure out exactly what is behind the $500 cash flow.



    Greg, please lurk not! Your posts are your genuine believe and experience and are very useful to me in considering ALL angles in anything to do with real estate investing. We all learn from each other, and our shared collective experience and knowledge will only make us better. Thank you for your contribution to this board.

    Todor Yordanov
    Do or Do Not! There is no Try. - Yoda

    416-902-9707 - direct

    Proud recipient of REIN's Renovator of the Year Award (Ontario) for 2012

    www.ProactInvestments.com - Investing in Real Estate Properties with Joint Venture Partners.

    Sign Up for my Blog and Newsletter - Learn about exciting and profitable opportunities with Real Estate

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  • prairiern

    Status: Forum Member

    Posts: 3
    Joined: 3 Dec 2007
    From: high prairie, alberta

    QUOTE (TodorYordanov @ Aug 29 2009, 07:28 AM)
    Congratulation Jan! Good for you for taking action and building these positive relationships and team. Having the demanding and incredibly difficult job as an RN and also thinking "outside the box" and doing something like that is great.

    Can you provide few more details on the purchase? Purchase price, downpayment, other montly expences, rent etc. As you know there are few different ways to calculate cash flow and I am just trying to figure out exactly what is behind the $500 cash flow.



    Greg, please lurk not! Your posts are your genuine believe and experience and are very useful to me in considering ALL angles in anything to do with real estate investing. We all learn from each other, and our shared collective experience and knowledge will only make us better. Thank you for your contribution to this board.


    Hi I am a techno cave girl but I will give it a shot. Purchase price 338k with GST. 100% on 2 different HELOC's Monthly expenses = $900 interest ONLY, 270 taxes, 225 PM, 50 insurance, 50 H2O, for a total of $1495. I deliberately did not factor in vacancy, as I have year long leases( no guarantee I know) or repairs as I have a new building and appliances all with warranty's. The upstairs rents for 1225 and the downstairs for 1000. Total out $1495. Total in $2225. Cashfow actually $730 but I left some out to allow for miscellaneous such as tenant appreciation. Thank you for your support and your interest. Jan Robinson
  • MonteDobson

    Status: REIN™ Member

    Posts: 712
    Joined: 8 Oct 2007
    From: Regina, SK

    QUOTE (prairiern @ Aug 29 2009, 11:57 AM)
    Hi I am a techno cave girl but I will give it a shot. Purchase price 338k with GST. 100% on 2 different HELOC's Monthly expenses = $900 interest ONLY, 270 taxes, 225 PM, 50 insurance, 50 H2O, for a total of $1495. I deliberately did not factor in vacancy, as I have year long leases( no guarantee I know) or repairs as I have a new building and appliances all with warranty's. The upstairs rents for 1225 and the downstairs for 1000. Total out $1495. Total in $2225. Cashfow actually $730 but I left some out to allow for miscellaneous such as tenant appreciation. Thank you for your support and your interest. Jan Robinson

    Hi Jan,

    Congrats on the purchase!

    A few more points to consider....

    • Grande Prairie is very volatile = very good times, and very slow times (ie. during spring break up, and low gas prices)
    • Factor in ~8% into vacancy (although it may be zero, it could be 10% the next year due to high and low swings)
    • start with 3 months rent in reserve and continue to build 10%/month into repair and maintenance fund (yes, even though the units are new, tenants can and will wreck them - you will have repairs 2-5 yrs down the road)
    • factor in the cost of re-renting units (PM's charge an application fee, placement fee etc, and you will have to cover the utilities while it is vacant)
    • This would equate to $2225 x 18% = or an additional $400.50 out of your cashflow.
    • Also, consider that interest rates are currently "on sale" and will go up over time. Not sure your current mortgage terms, but it sounds like you are highly leveraged. An increase in 1% = increased financing costs by ~$80/month for every $100K
    You may be thinking this is excessive, but we have owned in GP for over 3 years now and have experienced very good times, and very slow times...so do your best to be prepared for unforeseen expenses, because there will be some no matter how new your property is.

    Good luck!

    Monte Dobson | Regina, SK | Ph. 306.585.1341

    Saskatchewan Real Estate Investor

    Email | TwitterFacebook | LinkedIn


  • prairiern

    Status: Forum Member

    Posts: 3
    Joined: 3 Dec 2007
    From: high prairie, alberta

    QUOTE (C2Ventures @ Aug 29 2009, 04:12 PM)
    Hi Jan,

    Congrats on the purchase!

    A few more points to consider....

    • Grande Prairie is very volatile = very good times, and very slow times (ie. during spring break up, and low gas prices)
    • Factor in ~8% into vacancy (although it may be zero, it could be 10% the next year due to high and low swings)
    • start with 3 months rent in reserve and continue to build 10%/month into repair and maintenance fund (yes, even though the units are new, tenants can and will wreck them - you will have repairs 2-5 yrs down the road)
    • factor in the cost of re-renting units (PM's charge an application fee, placement fee etc, and you will have to cover the utilities while it is vacant)
    • This would equate to $2225 x 18% = or an additional $400.50 out of your cashflow.
    • Also, consider that interest rates are currently "on sale" and will go up over time. Not sure your current mortgage terms, but it sounds like you are highly leveraged. An increase in 1% = increased financing costs by ~$80/month for every $100K
    You may be thinking this is excessive, but we have owned in GP for over 3 years now and have experienced very good times, and very slow times...so do your best to be prepared for unforeseen expenses, because there will be some no matter how new your property is.

    Good luck!
    i
    Hi Monte Thanks so much for all that very thorough information We came into this with a (I hope) generous safety cushion and plan on holding for at least 5 years. I have no doubt that this is as good as it can get right now and vacancy/damage/increased interest are inevitable. I got an email from someone in GP last winter re a REIN social/support group, responded, never heard anything back. Do you know anything about it? Thanks so much for sharing your knowledge and local experience. Sincerely Jan Robinson
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