1st impressions of ACRE system

[rabrol]

Hi Everyone.

I found this forum a few days ago when researching investment opportunities. I thought I might pop in and ask a few questions. I actually managed to find one of Don`s books in the library. It is "Real Estate Investing in Canada". I`m two thrids of the way through the book and noticing it is mainly geared to rental investments.

For example he talks about the 10% rule. I don`t think there are many properties out there in Edmonton right now that would fit it...well single family homes anyway. A typical house price around here is $320k or so, yet there is no way you would be able to rent it out for $2670 per month! What is the current advice on this given the pricing right now?

I`ve also been wondering about the Real Estate season in Edmonton now. Are house prices really dropping? Does that make it RE Winter now? If so, how long is that expected to last, or is it something that happens to the market every year?

I am hoping to become involved in Real Estate over the coming months. A friend has done well and established a good track record over the last 5 years, so I will be seeking his advice & mentorship. I`m not sure if he uses the ACRE system or something else. I`ll ask him next time we meet up!

Personally, I am not interested in rental deals. Flipping would probably capture my interest more at the moment, but I am concerned about finding quality contractors and good people to invest with. Open to all advice from more seasoned pros out there.....

Thanks for your time,
Robin

 

[Todd_S]

Hi Robin,

I`ve been a rein member for over a year now. The acre system in my opinion isn`t black and white. My recommendation if you`re interested in real estate investing is to join REIN. The small investment per month (not expense...investment) will pay for itself in one deal you make. It has given me the confidence to make real estate deals. If you`re not ready for that kind of commitment, I would recommend the quickstart program which is offered in each city once a year. Its so hard to answer your questions in a posting...like I said, the area of real estate investing is very grey area.

Hope it helps,

Todd Spetter

 

[Grant]

Real Estate Investing in Canada was written a few years ago, but the basic principles still apply. However, we have moved to a "Cash Flow Zone" format instead of a 10% rule. The main idea is to find properties that provide positive cash flow.

The economic fundamentals in Edmonton indicate that it is still a good place to invest. The increases aren`t as massive as they have been recently, but the market is strong.

I highly recommend either membership or Quickstart (the latter is free with membership). These go much more into detail into finding investment properties.

Good questions, for sure! I`m sure other members will give more answers as well.

 

[ChrisDavies]

Also, if you`re into flipping then you might find REIN is not necessarily the place for you. The system is about long term stability and growth, not the quick buck.

That said, I`ve found 10% properties in Edmonton, you just have to be creative.

 

[CarlaJohnson]

If you attend Quickstart or join REIN you will meet a lot of investors who have a great deal of experience flipping. A lot of buy and hold investors do flips when they see the opportunities.

When we first got into investing, all I wanted to do was flip houses, but after doing my homework and talking to people with experience I decided that establishing a sold business would be the best way to carry us through the ups and downs of flipping. We have done some significant reno work now and we have a much clearer understanding of that part of the business. It`s nothing like it looks on HGTV.

Down the street from us here in Cambridge someone did a great job on a flip. They made a lot of right decisions, except I suspect the flippers don`t live in the area as the house is located on a small unpleasant stretch of a mostly decent road. It has been for sale for over 8 months now.

That`s my 2 cents.

 

[rabrol]

QUOTE (CarlaJohnson @ Apr 1 2008, 07:05 PM) If you attend Quickstart or join REIN you will meet a lot of investors who have a great deal of experience flipping. A lot of buy and hold investors do flips when they see the opportunities.

When we first got into investing, all I wanted to do was flip houses, but after doing my homework and talking to people with experience I decided that establishing a sold business would be the best way to carry us through the ups and downs of flipping. We have done some significant reno work now and we have a much clearer understanding of that part of the business. It`s nothing like it looks on HGTV.

Down the street from us here in Cambridge someone did a great job on a flip. They made a lot of right decisions, except I suspect the flippers don`t live in the area as the house is located on a small unpleasant stretch of a mostly decent road. It has been for sale for over 8 months now.

That`s my 2 cents.

Yeah, thanks for the thoughts. I think flipping would be part of our strategy for getting started, then some longer term investments too. The guy I know has been almost exclusively flipping and been doing very well - although some of his projects have been longer term with excellent ROI.

I suppose my main concern is obtaining financing. We`ve only been in Canada 2 years, so our history is limited. And we just recently bought a house ourselves which means I don`t have much for a downpayment.

I`m not looking at it as a "get rich quick" scheme, but my Personal Belize does include having my mortgage paid off in the next 5 years. Its a big goal, but that is part of the vision!

Rob

 

[dwb]

QUOTE (rabrol @ Apr 2 2008, 12:02 AM) Yeah, thanks for the thoughts. I think flipping would be part of our strategy for getting started, then some longer term investments too. The guy I know has been almost exclusively flipping and been doing very well - although some of his projects have been longer term with excellent ROI.
I know of a lot of people that spent many years flipping. They`ve made a lot of money, $20k here $30k there. Before long, however, nearly all of them realize that the real money is made in long-term buy and hold investing.

 

[rabrol]

QUOTE (dwb @ Apr 2 2008, 05:03 PM) I know of a lot of people that spent many years flipping. They`ve made a lot of money, $20k here $30k there. Before long, however, nearly all of them realize that the real money is made in long-term buy and hold investing.

Yes I think that is how I will proceed within a couple of years. It would be nice to get a few quick ones through the system first though...

I have already started the due diligence. I have selected some areas that I think will experience good increases in the coming years. 2 of the sites are longer term projects.

Tonight I`m picking up Don`s other book, 97 tips. Looking forward to devouring that!

By the way, do any REIN members do leasing with an option to buy, or is that just a US thing?
Thanks,
Rob

 

[CarlaJohnson]

There are quite a few who REIN members who have great lease-to-own systems. We have had some excellent workshops at REIN meetings. I suggest you start another post about it and see who responds.

Good luck.