should i invest in this?

[albainstar]

I have about 20k i want to invest
I cant afford to buy an investment property where i live so i am looking to make some good intrest...
i have looked at a few of these types of companies and am wondering peoples thought on it as an investment
www.signaturecapital.ca

I like the approach of htis company as opposed to others with simliler tyoe investments- i like that they talk to me not at me....

but what about this type of investment or are there others i should look at?

any suggestions are appreciated

 

[smichaelfloyd]

With $20K available you have the ability to implement a myriad of strategies. It certainly IS enough to work with on a property of your own. Important to know, is the $20,000 in an RRSP?... are you open to joint ventures?... are you willing to ask vendors for VTBs?... If you`re looking to place your money with a company like this I think you can expect returns on your investment far below what a typical joint venture in Alberta will net you.

Take the time to search for an experienced JV partner with a model matching your interests. A JV partner who`s willing to share the entire process with you (assessing, acquiring, past experiences, managing, everything). Allow your JV partner to make as much equity for you both as possible, experience everything and learn as much as you can for the next one that you do. If you haven`t the time available to you to devote to learning and implementing the process, that`s okay. The right JV partner will be more than happy to continue making you more money on an ongoing basis.

If you DO want to put your money with a company like this (and there are many like this), do your research, look for the highest interest guarantee with a credible company, and use RRSPs (if it`s not in RRSPs already, register it first then transfer it. Might as well use the government`s money where its appropriate). You can melt-down the RRSP later.

Whatever you choose, AIM HIGH.

 

[albainstar]

QUOTE (smichaelfloyd @ Jan 16 2008, 11:34 AM) With $20K available you have the ability to implement a myriad of strategies. It certainly IS enough to work with on a property of your own. Important to know, is the $20,000 in an RRSP?... are you open to joint ventures?... are you willing to ask vendors for VTBs?... If you`re looking to place your money with a company like this I think you can expect returns on your investment far below what a typical joint venture in Alberta will net you.

Take the time to search for an experienced JV partner with a model matching your interests. A JV partner who`s willing to share the entire process with you (assessing, acquiring, past experiences, managing, everything). Allow your JV partner to make as much equity for you both as possible, experience everything and learn as much as you can for the next one that you do. If you haven`t the time available to you to devote to learning and implementing the process, that`s okay. The right JV partner will be more than happy to continue making you more money on an ongoing basis.

If you DO want to put your money with a company like this (and there are many like this), do your research, look for the highest interest guarantee with a credible company, and use RRSPs (if it`s not in RRSPs already, register it first then transfer it. Might as well use the government`s money where its appropriate). You can melt-down the RRSP later.

Whatever you choose, AIM HIGH.


Thanks for the insight.
I would love to do a JV, I just thought with me being in Fort McMurray 1. I would need at least 70k to put 1/2 of a down payment down
2. If I invest somewhere else how do I monitor, or even help the JV? I am running un understaffed busy store in Fort Mcand flying in and out of another town is just not really a viable option for me, ecxept perhaps once per month.
Thus the reason I havent joined REIN, and other than that how do I meet, and more importantly know if I can trust a JV partner?

 

[Thomas Beyer]

why not .. they have a similar philosophy as ours .. buy old and ugly apartment buildings .. fix it up .. more condo conversion oriented though .. thus more risk but potentialy more upside ..

 

[ApexQI]

If you are worried about how you can help from fort mac., do not worry about it. As for monitoring the JV partnership-that is all paperwork and the property is not going anywhere.

I dare to guess that most investors who are looking for a JV, and following any of the REIN formats are looking for a money partner who is hands off. The money partner is just that, a money partner, the Investor is the RE expert and usually does all the work finding, renting, maintaining, and eventually selling the property.

If you are not able to be hands on helping I do not see that as a pitfall. But that is just my spin on JV partners.

Do you want to JV on a property? now that you know some of my criteria..

 

[albainstar]

Well ApexQI that is a possibility
could you email me what kind of properties you have experince with and what min $ you are looking for in a JV and all your expectations etc?

thanks in advance

[email protected]

 

[Thomas Beyer]

QUOTE (albainstar @ Jan 16 2008, 12:38 PM) ... I am running un understaffed busy store in Fort Mcand flying in and out of another town is just not really a viable option for me, ecxept perhaps once per month.
Thus the reason I havent joined REIN, and other than that how do I meet, and more importantly know if I can trust a JV partner?

TWO parties exists in a JV: the guy or team who WORKS .. and the guy with MONEY ! Often the profits are split 50/50, but that is not a rule.

REIN exists to help guys who wish to WORK the deal .. as it is a lot of work .. see list below ..

You trust people by checking their track record .. or phone references .. or interview them .. but track record is best ..

What does the WORKER or REAL ESTATE TEAM DO:

ü Investigates location / area of North America to invest in (recently we bought in Powell River on BC’s Sunshine Coast due to low prices and expected upside due to baby boomers retiring – we’re also buying in Saskatchewan and Texas right now)

ü Investigates location once city or metroplex is selected (we like “B” areas where value can be created fast .. as opposed to “A” locations that are often too pricey or “C” locations where rent increases are tough to realize due to bad tenant profiles and management problems)

ü Screens / filters potential investment properties using realistic rents and/or expenses

ü Writes offer on selected property (this may involve multiple offers and multiple iterations since typically not all offers will be accepted)

ü Negotiates terms and conditions of offer

ü Finalizes offer

ü Sets up the legal structure / corporation, and co-investor structure usually via a joint venture or limited partnership agreement

ü Selects property manager, onsite manager and other professionals (such as tax advisors, inspectors, appraisers, bankers, engineers, roof experts, boiler mechanics) that may be required to inspect the property initially and operate the property on a day-to-day basis

ü Will market, rent, fix up, repair, paint, landscape and/or enhance said property to standards that expert sees fit to achieve appropriate rent and/or resale value

ü Will keep a record of such fixtures, repair material and/or landscaping material expenditures and/or of all other expenses, such as property management fees, sub-contractors, onsite managers, taxes, insurance, realtor, legal, advertising and/or related expenses to market, upgrade, rent and later sell said property

ü Sets up WCB, contractor, Rona, Home Depot or supplier accounts

ü Negotiates and sets up preferred vendor, supplier and contractor list

ü Negotiates with financial institution to obtain, initially and/or later, re-finance using 1[sup]st, 2[sup]nd[/sup] and/or CMHC or FannieMae insured mortgages

ü Manages all relationships with banks, realtors and/or 3rd[/sup] parties

ü Sets up reporting and e-payment mechanism to investor

ü Acts as the primary interface to property manager, or may manage properties in-house

ü Adjusts rents frequently with market realities

ü Invests frequently (but not always) personally into the venture

ü Signs all necessary legal documents

ü Files annual or quarterly statements / documents that may be required by various jurisdictions

ü Signs required personal guarantees for required mortgage(s)

 

[polywave]

Hi, my name is Paul Roy. I am also working in fort Mac and was looking at the same sort of investments. I got in touch with a fellow that is looking for investment income. He is from Moncton New-Brunseick. He told me a bit about it and his plan involves 6 investors purchasing an income property for 6 years and then selling it. He would take care of the financing and at the end he would keep 10% of the profit for his troubles. I don`t know all the details but will be meeting with him next month. Maybe this would be of interest to you. He said that the location of the property would be decided by all the six investors.

Hope you keep posting your journey, maybe I can follow your success.

 

[PeterKinchMortgageTeam]

QUOTE (albainstar @ Jan 16 2008, 01:38 PM) Thanks for the insight.
I would love to do a JV, I just thought with me being in Fort McMurray 1. I would need at least 70k to put 1/2 of a down payment down
2. If I invest somewhere else how do I monitor, or even help the JV? I am running un understaffed busy store in Fort Mcand flying in and out of another town is just not really a viable option for me, ecxept perhaps once per month.
Thus the reason I havent joined REIN, and other than that how do I meet, and more importantly know if I can trust a JV partner?


Fort McMurray has great cashflow! Its one of the few places we`ve been able to arrange high ratio mortgages and still be able to cashflow. Something that you might want to consider based on your application and your long term financing plan. Higly leveraged properties are more risky and don`t work for alot of investors, so make sure that your broker or banker is aware of your long term plan.