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Plan. What’s yours? We as humans, do a lot of planning.

Posted by on Mar 4, 2015 in Uncategorized | 0 comments

      PLAN. What’s yours? The dictionary defines “plan” as follows: a set of actions that have been thought of as a way to do or achieve something something that a person intends to do a scheme or method of acting, doing, proceeding, making, etc.,developed in advance a specific project or definite purpose Everybody plans. We’re planning to have friends over, planning to get a new job or planning to save more money. We have financial planners, wedding planners, media planners, construction planners, social planners and community planners. We use day planners, project planners, recipe planners, diet planners, and weight loss planners. There are planners for gardens, planners for renovations, planners for shopping and planners for travelling. Common English lingo includes, “what’s the plan?”, “got a plan?”, “where’s the plan?” and “we need a plan”. We as humans, do a lot of planning. In fact we’re always planning. I’m planning to sleep in tomorrow. I’m planning to leave work early tomorrow. I have to plan a dentist appointment, and I’m planning to get together with my works mates at the pub. You’ve got your “action plan”, “floor plan”,  “business plan”, “phone plan”, “family plan”, “simple plan” and all you want to do is “stick to the plan”. With all the time we spend planning, how much time do we spend executing? A plan is only as good as the execution of the plan. Where sports teams make a “game plan” that has detailed ideas and models to secure a win, it’s in the execution of the plan where the winning is done. As in “the best laid plans….”. It’s a powerful word, “plan”. Rest assured nothing would be accomplished without a plan. Someone planned to “create a country”, “form a government”, “build roads”, “tax the population” (Damn that plan) and “write laws”. Without a plan, we wouldn’t have cellular communications, social media or on-demand television. There would be no consistent supply of food, clothing and shelter, and we’d probably all be wandering around aimlessly in the dark looking for yes, a plan. Funny thing about plans, when you make one, you have real good chance of meeting the goals of the plan. Without a plan, nothing, with a plan, your options are unlimited. Problem is, some of our plans are just too unimportant or perhaps, short sighted. Ever made a plan and had it work out “exactly to plan”? Felt great, right? So we make another plan. And the planning continues. Thinking about plans, it seems to me that we spend almost as much time planning, as we do just living. Virtually every action we take is part of a plan. When we walk to the store, we have a plan. When we make dinner, we have a plan. When we get up in the morning, “it’s all part of the plan”. And then, one of the most common things you’ll hear today from a variety of professionals and media outlets is, “what’s your retirement plan”? For many, “the ultimate plan”. Massive amounts of money are spent by a large group of financial and insurance institutions to arouse your interest in making a retirement plan. They all want to represent your interests and help you put your money to its best use. Buy this fund, put more into your RRSP, get a TFSA, save more, etc. Everybody has an opinion, oops sorry, “a plan”. Regardless...

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Investment Properties

Posted by on Feb 13, 2015 in Real Estate | 0 comments

Investment Properties have greatly increased in popularity over recent years. No matter what your reason is for choosing property investment, there are several crucial factors to consider before searching for the right property. There are many methods which can be applied to property investment, dependent on your goals and what you want to achieve. Buy to Sell – Buying and selling investment property within the short term for profit. Buy to Rent – Buying and leasing to achieve a rental income and accumulate equity. Property investment can be extremely rewarding but should only be entered into with due care and consideration. There are many crucial factors to consider which will determine which direction you will move in when considering the property investment possibilities. Careful consideration must be given to location. You must decide if you wish to invest in your local area which you may be more familiar with, or invest in a current “hot spot” which may provide more attractive investment options. Property price must also be considered, with widely varying properties available at all levels of investment. Investors tend to be guided by the capital they wish to invest in any one property. A mortgage broker or lender will be able to advise you on how much you can borrow to invest in property, along with any further costs or fees involved. A Solicitor can also advise you on the legal costs, disbursements (local search fees, etc.) and stamp duty cost if applicable. Once these factors have been considered, the next step in property investment would be to search for suitable properties and undertake the essential research to minimize risk and maximize profit. Properties which are ideal for investment will inevitably sell quickly. Time consuming research can unfortunately result in astute investors missing out on some great investment opportunities, which is why partnering with Legacy Wealth can help you achieve your goals of passive income with little to no hassle. By gaining a good perspective of your goals and aims and by not deviating from your chosen investment plan, you should form a solid basis for successful property...

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Opportunity Knocks in Red Deer AB

Posted by on Feb 5, 2015 in Uncategorized | 0 comments

It’s been said by many successful investors, “You have to look at a lot of deals, to find a good one”. Well, have a look at this… Park Plaza Centre – Red Deer AB (2015) Four story commercial and residential building with elevator 1 & 2 bedroom condominiums Units starting at $219,000 Built in 2011, floor plans range from 1060 – 1283 sq ft Located in the downtown city center near all amenities; parks, recreation facilities, public transit, shopping and grocery outlets Heated underground parking included Solid rents with 100% occupancy Positive cash flow from day one Turn-Key investment with professional team in place 100% direct ownership The Red Deer Market Alberta’s third most populous city (Approx. 98,585) City purchased 7400 acres of surrounding land in 2009, immediately doubling the size of Red Deer and allowing for a potential tripling of the population Population growth of 7.2% since 2011 and expected to reach 128,420 in the next 10 years As of 2012, the average household income was $98,922 Young labor force- 42.6% of the employed population below age 34 Key Industries – manufacturing, agriculture, oil & gas, construction, healthcare, professional services and retail Ranked #6, REIN Top Investment towns (www.reincanada.com) And here’s a Sample Proforma…                     * Legacy Wealth incentive – Legacy covers the cost of property taxes and management fees @ 2014 values for 24 months. (That’s an extra $6 thousand plus)       And there`s even more opportunity in this deal as these properties are appraising above Legacy`s selling price which means you are getting built in equity above your down payment. THIS OPPORTUNITY IS 50% SOLD AND WON’T LAST LONG. Regardless of what the media says about Alberta (and Oil), it’s still a buoyant market and people still need to live somewhere. Being a strategic investor is all about striking when the rest are in disarray. For more information on this project and to receive full disclosures, please contact Legacy Wealth with your name, email and phone number. Or, click here -> Yes, I’d like more information on Park Plaza in Red...

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The Sky is Falling! (Alberta Version)

Posted by on Feb 2, 2015 in Uncategorized | 0 comments

The Sky is Falling! (The Alberta Version) Original: Chicken Little likes to walk in the woods. She likes to look at the trees. She likes to smell the flowers. She likes to listen to the birds singing. Alberta: Real Estate Investors buy properties in the Oil Patch. They love to get monthly cash flow, property appreciation and bank financing. Original: One day while she is walking an acorn falls from a tree, and hits the top of her little head. Alberta: In six months in 2014, the price of Oil drops by 50%. Original: My, oh, my, the sky is falling. I must run and tell the lion about it, – says Chicken Little and begins to run. Alberta: My, oh my, our financial windfall party is over. I must complain to everyone and look what the media is saying, “we’re doomed”. Original: She runs and runs. By and by she meets the hen. Alberta: Budgets are slashed, layoffs occur, real estate listings explode. Original: Where are you going? – asks the hen. Alberta: Where are we going? – asks everyone. Original: Oh, Henny Penny, the sky is falling and I am going to the lion to tell him about it. Alberta: Oh Canada, the party is over and I’m going to whine about it through the media. Original: How do you know it? – asks Henny Penny. Alberta: Hasn’t this happened before? – asks everyone. Original: It hit me on the head, so I know it must be so, – says Chicken Little. Alberta: But it is different this time! Original: Let me go with you! – says Henny Penny. – Run, run. Alberta: Then it must be true. I’ll complain with you. Sell my house and move to Ontario. Original: So the two run and run until they meet Ducky Lucky. Alberta: The frenzy continues as the media speculates about “Poor Alberta”. Original: The sky is falling, – says Henny Penny. – We are going to the lion to tell him about it. Alberta: The economy is crashing. We are telling everyone to get out while the getting is good. Original: How do you know that? – asks Ducky Lucky. Alberta: Hasn’t this happened before? – asks everyone. Original: It hit Chicken Little on the head, – says Henny Penny. Alberta: Because the newspapers said so. Original: May I come with you? – asks Ducky Lucky. Alberta: Should I sell too and move to Quebec? Original: Come, – says Henny Penny. Alberta: Yes, get out now! Original: So all three of them run on and on until they meet Foxey Loxey. Alberta: The frenzy continues as the media speculates about “Poor Alberta”. Original: Where are you going? – asks Foxey Loxey. Alberta: Where will we find another boom? Original: The sky is falling and we are going to the lion to tell him about it, – says Ducky Lucky. Alberta: The oil party is over and we’re telling everyone to get out. Sell everything and run. Original: Do you know where he lives? – asks the fox. Alberta: What will we do, the market bottom is unknown? Original: I don’t, – says Chicken Little. I don’t, – says Henny Penny. I don’t, – says Ducky Lucky. Alberta: I don’t know. Original: I do, – says Foxey Loxey....

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Technology and Real Estate

Posted by on Dec 11, 2014 in Real Estate | 0 comments

  Investing in real estate has always been a way to secure wealth. That hasn’t changed. With the advances in technology and communication you would think that the opportunities that were and are discovered and acted upon, have changed. But not really. Today there are countless websites, smartphone apps, and innovations that make it extremely easy to locate and research real estate purchases and investments. Everyone is trying to build a better mousetrap. From the franchise real estate companies, to independent investment firms, all are utilizing technology to entice us to refine our purchase/search choices and then provide us an ever increasing amount of information related to buying real estate. And why not, as the population grows and ages, more and more real estate purchases are being transacted. However, ultimately we will end up working with a variety of persons in following the path to a purchase. The reason there are Real Estate Agents, Mortgage Brokers, Appraisers, Notaries and Lawyers in the real estate transaction is because they have expertise. While some of today`s real estate technology will incorporate referring links to these professionals, it is in the person to person conversation where the real opportunity happens. And, in the investment scenario, those conversations can be the start of something much more than just “a transaction”. Every real estate purchase requires expertise. As suggested above there are at least four or more professionals in the purchase of a home as a principal residence. In purchasing investment real estate there can be that many and lots more if you’re working with larger purchases like multifamily properties. The quality of each professional can greatly affect the outcome and decision making process that the buyer will go through. Like a lot of our day to day purchases, when someone does a good job for us, we are likely to take their recommendations on futures purchases. And the opposite is also true. Technology gives us quick access to a lot of information. Did you know that more than 90% of the documented data on the internet was created in the last two years? And it`s growing fast. So how we apply the technology to searching for real estate opportunities is a bit of a quagmire. The reality is that while we may find a tempting property to buy and be able to determine many things about that property from the technology delivered information, it is the hands on, see it with your own eyes, and get the real story from the agent that helps us determine the quality of the opportunity. And, the inspectors and appraisers can help us confirm our understanding of opportunity vs. risk. So back to the top. Where do those really good investment opportunities come from? The same as it has always been, relationships! Professionals in real estate became that because it’s something they do every day. They live the work they do, over and over until what they know becomes second nature to them and in a lot of cases they really don’t realize how much they know. They share opportunities with their family, friends, contacts and network. That’s where the opportunities are. So while it’s fascinating to be able to make a few clicks on a website or a few swipes on a smartphone, it’s the discussion and conversation with these real estate professionals where you will find more profitable buying opportunities than you can probably afford. But give it a try for yourself. Call a real estate professional.   * indicates required Your Name...

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Everyone’s A Winner!

Posted by on Dec 4, 2014 in Uncategorized | 0 comments

A sometimes pervasive element in society that has a far reaching effect on our progress is the “Everyone’s a Winner” attitude. You know the one. Children get an award for “participation” even if they come last in a race with thirty others. Somehow, parents and teachers feel that by coddling our children and getting them to believe that it’s good just to participate that this will prepare them for the rigors of business and life. Perhaps they fear for the child’s sense of belonging. While it is good to participate, winning is better, and it’s measured. Not sure where this attitude got started but telling children in their developing years that it is ok to just be a participant, is really limiting the child’s opportunity to learn how to compete, and how to lose or win, graciously. It’s certain that all of the luxuries and privileges we enjoy today didn’t just pop up from someone who merely participated. No, today’s innovations, business leaders, and captains of industry competed. The creators and leaders were and are the “take no prisoners”, “win at all costs”, “damn the torpedoes”, personalities. It could be submitted that the “everyone’s a winner” attitude creates a sense of entitlement with individuals as they become maturing adults. Expecting the best outcome is a great attitude but reacting negatively when it doesn’t happen is a result of just participating. Pick yourself up, dust yourself off and try again. Winners do. In fact, that’s how you become a winner. Not to belabour the above point(s), (and it’s expected that readers have now formed a solid opinion about this, negative or positive) but the “everyone’s a winner” in a real estate context, is a fable. Yes, fortunes are made in real estate and the wealthy of the world secure their wealth with real estate but fortunes are lost as well. The effects of telling someone over and over to just “participate” and become a real estate investor will undoubtedly confuse and complicate what should be a life-long learning experience. In reality the attitude should impress that much work has to be done before one becomes good at it, and successful. One has to “compete” because others are competing. Some successful investors will look at 100 properties, make an offer on 10 and buy 1. That’s a lot of work and not just participating. The number of real estate investors is increasing. More and more people realize that residual income and increased wealth from real estate is a great plan for more leisure time and eventual retirement. However, with more and more investors, finding the right real estate opportunity is harder. There`s just more people (and institutions) looking at the same opportunities. Not everyone can “win”. Those who do will be the ones that do more than participate. They train, and they study, then get into the starting blocks and run that race. If they finish last out of thirty, they get ready for the next race and the award they get for participating is experience, but the ultimate goal is to win. Although you may view this as an unusual comparison (child rearing versus buying real estate) the principal is similar in that if you think you can, you will. Telling someone it’s fine to just participate when what they want is to win, does them a disservice. (And deep inside everyone wants to win). Winners aren’t born, they’re built and the attitude is everything. “Everyone...

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This isn’t your Fathers’ Real Estate Market

Posted by on Nov 20, 2014 in Real Estate | 0 comments

Is wasn’t so long ago that searching for and buying real estate involved a lot of driving around and looking at new developments, watching for “For Sale” signs in the neighborhood where you wanted to live, and working with a real estate agent to look at the photocopies of Multiple Listings. And it wasn’t so long ago when a single family dwelling in the Lower Mainland of BC had an average price of $94,000. That was around 1985. Fast forward to 2014 and while we may still drive around looking, we’ve probably done a whole lot of pre-looking on the internet and have likely used one or more of the many websites that provide the ability to search for exactly what we are seeking to buy. A single family dwelling in South Burnaby, with three or more bedrooms, two or more bathrooms and priced between $500, 000 and $1 million. Click. Technology has made it easier to search for real estate to buy but what’s really different about today’s real estate market is the price and in particular the spread between income and price. In 1985 the average cost of a house versus the average household income was about four (4). That means that the house would cost about 4 times the average income. Today, that number is in excess of sixteen (16). For sake of argument and using 100,000 dollars as a benchmark for a house price in 1985 that would mean the average household income would have to be at about $25,000. At the factor of 16, and not changing the income, today’s house price would be $400,000. Regardless of what the actual numbers are (and they are much higher), the fact is that the cost of a house has far outstripped the average income. What to do? Well, if you had bought a house back in 1985, you’d be sitting on some serious equity. If you’re looking to buy a house now, you’re going to need some serious income. And of course the (so called) experts will say that the market is going to go down, so just wait. As a prudent investor, we know that “you don’t wait to buy real estate; you buy real estate and wait”. Given the numbers we’ve presented here, doesn’t that seem obvious? It appears houses in the lower mainland are well out of reach for most new buyers, and from an investment perspective, the cost versus the rental return makes it difficult to justify the cash commitment. However, there are markets that still support solid investment opportunities and where the rental income does justify the cash outlay. If your plan in the longer term is to buy in a high-priced market like Vancouver, perhaps getting into a rental property somewhere in a market where the numbers work, is a good stepping stone to increased equity and buying power that will allow you to move up. If your father was one of those that bought real estate back in 1985 or thereabouts, he is certainly one of the lucky ones who now have that luxury of equity. Or was it luck? Maybe, just maybe he understood the value of time and being patient and working up towards something. But this isn’t your father’s real estate market, it’s yours. What will you...

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Making a Difference with Real Estate

Posted by on Nov 6, 2014 in Uncategorized | 0 comments

The basic premise for anyone who invests in real estate is to make money and secure wealth. But there is more. Beyond the cash flow, appreciation and ROI there is the intrinsic need to provide accommodation. There will always be those who rent a house or apartment as opposed to those who insist on buying. When it comes to condominiums just over one quarter (¼) of those living in condominiums in Canada, are renters. The 2011 National Household Survey (NHS) showed that 1,615,485 households (12.1%) lived (either as owners or renters) in condominiums. Of these households, 1,153,580 were owners while 461,215 were renters. That’s a lot of rental income. (At an average of $1,000 per month = $461,215,000!!!) And that’s just the condominiums. Demand for rental income continues to grow and is driven by population gains as well as by the maturing group of young people leaving their parents home to strike out on their own. Many new immigrants arriving in Canada tend to rent upon their first arrival in the country. A stable employment level for young workers aged 20 -24 also supports the rental market demand. In fact, data from Statistics Canada reveals that households headed by individuals in this age group have the greatest tendency to rent. There are a lot of creative ways to buy real estate and investors and homebuyers continue to find new avenues of opportunity by thinking differently than your typical renter. Many investors have gone beyond the traditional model of “buy a property, find a renter, build wealth” to working in groups, creating joint ventures, offering “rent-to-own” properties and other such ideas. At the end of each of these opportunities lies the major component of making the plan work, “The Renter”. If you think about the “media built” image of a landlord, you may be visualizing the so called “slum lord” who continually raises the rent, does no maintenance and pretty much abuses the renters rights and ability to live a comfortable, healthy life in a rented property. While there are certainly those out here who fit this bill, they are definitely the minority. Today`s independent investor/landlord is primarily a sophisticated person who understands that providing a safe, healthy, well maintained and appealing rental property will secure their investment, limit their expenses (repairs) and provide a consistent cash flow through having a loyal tenant. Investors strive to accomplish this and ultimately, the renter has some real influence on this situation. There are two sides to every coin and in the case of investment real estate; the renter is the other side. Investors who tend to be very successful certainly do their due diligence when it comes to cost of investment, taxes, financing and such, but they also consider the quality and quantity of renters in the market they choose. They know that there will always be those who need to rent (even if market prices go down, actually, especially if the market goes down) and providing quality accommodation to these renters is beyond the numbers, it’s the right thing to do. And, being a landlord who works with and for the renter is really and truly, making a difference. Legacy Wealth Income Properties helps people build wealth, one property at a time. Ask us how you can make a difference and be...

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Should I Rent or should I Buy?

Posted by on Oct 23, 2014 in Real Estate | 0 comments

Should I Rent or should I Buy?

Should I Rent or should I Buy? That’s a question that shows up a lot in today’s media outlets. The answer is different for virtually everyone and everyone’s situation is different. Considering the continuous verbal barrage that we all hear from both media and government, we are led to believe that purchasing a place to live is getting more and more, out of reach. The Finance Ministers of Canada and its provinces and other so called experts in money matters repeatedly tell the public at large that we have too much debt, we need to save more, and they seem to enjoy setting new mortgage rules that appear to make it harder and harder for first time buyers to enter the real estate market. Yet, despite the drone of daily noise, we are still buying real estate to live in and as an investment.   The most obvious market for first time buyers is Generation Y. Primarily, those between the ages of 20 and 37 who in most cases will follow the normal sociological development of meeting a mate, getting married, buying a home, having children, and adding the two cars, dog, etc. This however, is not necessarily the primary direction Gen Y takes. There are those who, with good planning and solid, logical influence from their baby boomer parents, will learn to save early in life. And, as Gen Y lives longer with their parents, they will be able to jump into a purchased home on the first move out from under the family roof. Keep in mind; it could be a small condo, in an outlying market, with the 5% down that still exists for first time buyers, provided it is their primary residence. While Gen Y usually wants to be in the heart of the city with less need for driving and wanting to have access to amenities like restaurants, shopping and work; the development of suburbs outside of major centres and the improving transit systems, makes it more attractive to live in these areas.   So what’s the biggest factor about renting vs. owning? The most obvious is keeping your money versus giving it to your landlord so he can keep his money. Yes, renting provides the luxury of no maintenance and not having to save thousands of dollars for a down payment however, will your landlord keep your rented home in the same condition you would, if you owned it? And, how does it feel when you spend that $ 1,000 to $ 1,500 per month for a few years, and have nothing to show for it? After five years, those numbers translate to $ 60,000 and $ 90,000 dollars!   If you saved just $ 15,000.00 and secured a job that paid you $ 42,000 per year, you could purchase a condominium in the $ 200,000 dollar range and pay about $ 1,100 per month for the financing and heating. This is the number that banks and lenders will look at as about 32% of your income. After the same five years as above, you would have equity in that property of over $ 30,000 dollars! That’s your money and if you had a five year term on the mortgage, when you re-financed, you could use that money to increase your wealth, (buy...

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How to Live Your Best Life

Posted by on Oct 17, 2014 in Real Estate | 0 comments

How to Live Your Best Life

Cars, Boats, Vacations, Houses, and Dining out? Yes. Working hard? Not so much. Can you accomplish both, possibly if you have the right plan? Exactly what is that plan then and how do I get started, how long will it take and when do I get the vacation to Belize and the Ferrari?   If you’re what the marketing gurus call a “millennial” or “Gen Y”, (those born from the early eighties and into the nineties, sometimes called the echo generation) then “having it all” may be a major goal of yours. After all, you’re smarter than your Baby Boomer parents’ right, and certainly not going to make the same career and investment (mistakes) decisions they did. Well, they did do a couple of things right. One, they had you and two, they had real estate and with any luck that real estate will eventually be yours or at least shared between you and your siblings. Chances are good also, (because of time) that there is very little owing on that real estate so you’re going to have some equity to spend. Alright, here comes the vacation. But wait. You get the vacation, buy a new car and some other toys and what have you got, some memories and photos of a trip, some depreciating assets and no more equity. Too bad your parents didn’t have more real estate.   So here’s a thought. That equity that you have (this could also be any savings you’ve managed to hide away) could be leveraged. You know about leverage. It’s where you use a smaller amount of money to get a bigger amount of money. The real estate example is, you make a down payment on property and the bank gives you the rest via a mortgage. This isn’t math, its arithmetic. An Example:   Selling Price of Property                $ 200,000.00 Down Payment (25%)                    $ 50,000.00 Bank Finances                                 $ 150,000.00   It`s Simple. You just took $ 50,000 and turned it into $ 200,000. Not bad but, oh yeah, you have to make monthly payments on the banks money, and what about property taxes, condo fees (if it`s a condo) and maintenance and repairs. Well, what if you just rented out the property? Here’s what that could look like:   Monthly Rental Income                $ 1300.00 Monthly Mortgage Payment          $ 709.00 Monthly Property Taxes                 $ 120.00 Condo Fees                                      $ 225.00 Repairs and Maintenance              $ 100.00 Property Management                      $ 97.50 (7.5% of gross rent We added this to make it hassle free) NET                                                       $ 48.50   Big Deal, Hey! $48.50 barely pays for dinner. However, if you look at what you have after...

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