10% Solution in Edmonton

[billdekramer]

I`ve just joined REIN and want to start investing in Edmonton. I`ve been out looking and it seems like the property values have outpaced rental rates. I`m figuring that in the West End for example, a bungalow renting up and down with a garage would bring in about $2300 a month. The cost would be $300 - 350,000. That`s a ways off the 10% solution.

Any tips? Finding REALLY motivated vendors or ???

Thanks,

Bill

 

[RebeccaBryan]

In Edmonton you can safely use 8% solution and I have found properties that meet this. Look for Apartment style condo`s or Townhouses.

 

[billdekramer]

QUOTE (RebeccaBryan @ Apr 10 2008, 10:42 PM) In Edmonton you can safely use 8% solution and I have found properties that meet this. Look for Apartment style condo`s or Townhouses.
Thanks, Rebecca, I appreciate your input.

With a lower % solution, would you extend the amortization to help with cash flow? Pushing the mortgage out 40 years instead of 25 can give more monthly cash to build the slush fund, etc. eh?

Thanks again,

Bill

 

[Thomas Beyer]

QUOTE (billdekramer @ Apr 10 2008, 11:40 PM) I`ve just joined REIN and want to start investing in Edmonton. I`ve been out looking and it seems like the property values have outpaced rental rates. I`m figuring that in the West End for example, a bungalow renting up and down with a garage would bring in about $2300 a month. The cost would be $300 - 350,000. That`s a ways off the 10% solution.

Any tips? Finding REALLY motivated vendors or ???

Thanks,

Bill

keep looking . do NOT start in the high end locations nor single family homes as they RARELY, IF EVER, qualify for cash-flow or even 10% !

try: 4-plexes, townhouses, smaller homes in poorer neighborhoods ..

 

[billdekramer]

QUOTE (thomasbeyer2000 @ Apr 12 2008, 10:28 AM) keep looking . do NOT start in the high end locations nor single family homes as they RARELY, IF EVER, qualify for cash-flow or even 10% !

try: 4-plexes, townhouses, smaller homes in poorer neighborhoods ..


Thank you, Thomas ... I am still looking and I`ll look in these new places now, too.

Bill

 

[YLCorporation]

QUOTE (billdekramer @ Apr 13 2008, 10:40 AM) Thank you, Thomas ... I am still looking and I`ll look in these new places now, too.

Bill


Sorry i am new to investing. Can someone tell me what a slush fund is? I keep hearing that but i have no idea what it means? What is a 10% solution?

Thanks

Lynn
[email protected]

 

[Thomas Beyer]

QUOTE (YLCorporation @ Apr 13 2008, 10:49 AM) Sorry i am new to investing. Can someone tell me what a slush fund is? I keep hearing that but i have no idea what it means? What is a 10% solution?

Thanks

Lynn
[email protected]

slush fund = reserve for unexpected events ..

10% = annual rent divided by price as a rough guideline ..

 

[YLCorporation]

QUOTE (thomasbeyer2000 @ Apr 13 2008, 03:17 PM) slush fund = reserve for unexpected events ..

10% = annual rent divided by price as a rough guideline ..


Thank you for your help Thomas! You`re the best! Does anyone know what book/video/website that will provide me with all thise information. What price are you referring to in the 10% rule Thomas.

Thanks for your help.

 

[Thomas Beyer]

QUOTE (YLCorporation @ Apr 13 2008, 04:43 PM)
Thank you for your help Thomas! You're the best! Does anyone know what book/video/website that will provide me with all thise information. What price are you referring to in the 10% rule Thomas.



Thanks for your help.




join REIN .. and you will get all the answers !!



You can make serious money in real estate .. but you need: time, credit, KNOWLEDGE and money ..



time commitemnt is a necessity .. and education/knowledge comes through REIN, courses, books, tapes, experience ..



Cash comes from 2 sources: your own or: not your own



not your own is referred to as OPM (other people's money) such as bank, HELOC, JV partners, parents, wife, sister-in-law, friends, investors, or seller !



also check this post, on how to get stared:



http://myreinspace.com/public_forums1/General_Discussion/61-4391-How_to_get_started_.html



or this one on how to make money: http://myreinspace.com/public_forums1/General_Discussion/61-3347-5_ways_to_make_money.html

 

[RebeccaBryan]

QUOTE (billdekramer @ Apr 11 2008, 07:18 AM) Thanks, Rebecca, I appreciate your input.

With a lower % solution, would you extend the amortization to help with cash flow? Pushing the mortgage out 40 years instead of 25 can give more monthly cash to build the slush fund, etc. eh?

Thanks again,

Bill


If it`s possible to push the mortgage out to 40 years, I woudn`t hesitate. What you are looking for is cash flow, at least I am.

 

[willy]

Start by reading Don`s book (just finished it, starting 97 tips). It explains the 10% rule, and all the other stuff they refer to on this forum. There`s a lot of interesting information there, as well as a lot of common sense, which a lot of people might otherwise overlook.

http://www.chapters.indigo.ca/books/Real-E...on+campbel%2527

After you`ve read the book, then decide if joining REIN is right for you.

w

 

[schierau1]

REIN is the third group I have been a part of now and can say that I have definately benefited by learning from different teachings and meeting different mentors. That said, I have to say that REIN is the most comprehensive of the bunch and the simplest to follow to become successful. REIN provides a great framework for research and due diligence and helps you take a lot of the guess work/speculation out of real estate investing.
I would also recommend you connect with other like-minded individuals in a mastermind group or start off by investing (JVing) with someone who has experience and learn from doing.
Good luck
Ziv
[email protected]

 

[bb2]

I have been an investor for about 25 years and I have taken many courses and read many books and I have to say that the BEST education I have ever gotten has been through REIN - well I also learned through experience but I wouldn`t want to wish that on anyone! Why go through trial and error if you don`t have to. I joined just a year ago and the educational element is amazing.
I tend to buy houses with suites around the 300,000 range with a 40 year amortization and they cash flow.

Brenda Bastell