surrey real estate investors club - strategy selection

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Surrey Real Estate Investment Club

Welcome!

:

REI with a Cause! www.AspireRealEstate.ca

7.00-7.15 Arrivals and networking (4-5 min pp)Food orders (their tab)

1

REI with a Cause! www.AspireRealEstate.caWhen I have conversations with successful investors they never give me stock tips. They always talk about fundamentals. There is a lesson here for entrepreneurs: Without a solid understanding of fundamentals, it is hard to make smart wealth building decisions.

Learning to analyze quickly and efficiently this is the knowledge that will separate you from the rest. And that knowledge is scarce.

Mark Ford (Michael Masterson)

7.15

2Introductions

REI with a Cause! www.AspireRealEstate.caWelcome to the Surrey Real Estate Investors Club!Ian: From UK, former research scientist, teacher, commercial pilot and operations manager. Caro: From Colombia, Bachelors in economics and management, former commercial pilot, instructor. Sales and marketing background.

Held investment properties for 10 years. More later on why we got more involved but for me it is now my job and what pays the bills with our Company, Aspire Real Estate. Association with Kiva.

We certainly dont know everything and are constantly learning but we are both educators and love teaching and sharing and that is one of the reasons we started SREIC.

Others are: although other clubs had some good education they can also be high-level, too pitchy, unfriendly, expensive. We wanted to do something different that would get people interested in the possibilities and in particular all the good things that are happening in our city.

Soon to be biggest city in BC, >0.5m people now, 1,000 new people per month, voted #1 city to invest by REIN, but under-served at grass roots level for investors. Video on our website.Wanted something that would concentrate on the fundamentals no interest in US or contract assignments (later)There is enough to talk about with just our simple, little retirement plan

Club Rules - No pitching without our consent.Honesty and confidentialityOpen environment ask questions, be friendly, participate (we have activities!)

What we hope you gain from membershipEnough knowledge for you to get started and start asking the right questionsWe cant cover everything and we dont have all the answers or experience.We will only tell you what we know about, that is why well concentrate on certain tactics.Our opinions. Not a get rich quick event. 3Future Plans REI with a Cause! www.AspireRealEstate.ca Strategy & Getting Started Area Analysis & RE Cycle Property Selection and Cashflow Financing Due Diligence & Making an Offer Tenant Selection & Management

Then.

In these 1.5h meetings, its impossible to go in-depth

Future plans 6 months of covering fundamentals of buying residential RE. May have some expert speakers in for certain topics such as financing. After that we hope to build a following of people who are taking action and want to continue to expand their knowledge and horizons.

Bonus RTO?

4Sponsors

REI with a Cause! www.AspireRealEstate.caWelcome to the Surrey Real Estate Investors Club!

Sponsors: ARE, ABC, CREW, RNY. Our Company covering costs for the first several meetings but after that may need to charge a small membership fee.EPITR next meeting (or Dave?) Wed Feb 13th 7.30 pm Kingsway

Attendee introductions name, from, why youre here, if you have investment property.

5Tonights Agenda

REI with a Cause! www.AspireRealEstate.ca Why or why not use RE as part of your investment strategy

Different types of RE investing

How to get started today!

6The Legal StuffThe information contained herein (the Information) is intended for general informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either Aspire Holdings or any of its affiliates. Views expressed in this presentation are based on research materials available from sources that Aspire Holdings (d.b.a. Aspire Real Estate) considers reliable but neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. All real estate opportunities come with varying degrees of risk and past performance is not an indicator or guarantee of future results. Prices can go up or down and current performance may be lower or higher than any performance data quoted for comparisons.

REI with a Cause! www.AspireRealEstate.caWe`re expressing our opinion - not selling, promoting or advocating anything and if you go out and use the Information it`s at your own risk and all examples we give provide no guarantee of future performance of any investment.

7A Simple Retirement Plan

REI with a Cause! www.AspireRealEstate.ca Buy ONE townhouse at $300k and rent it for the next 25 years.

Each year income > expenses

Average appreciation = 3%

25 years later - zero mortgage, an asset worth >$600k and several $1000s in monthly income!

Like adding $2,000 / month to your retirement!

7.35

Wealth generation pension plan / accountant story8Why Real Estate?

REI with a Cause! www.AspireRealEstate.ca You can touch it!

Can be leveraged, manipulated and controlled This makes it interesting!

Provides diversification

But it is a business and often a means to an end. What are YOUR goals?

You can drive-by and see whats happening If you have $50k to invest you can by just that value of stock (excl. buying on margin) but you can buy $250k worth of investment property If they each go up 5%, which will make you more money? Cf ROIs also Can be refinanced due to appreciation (unlike stocks!)

Multiple ways to make money: appreciation, mortgage paydown, cashflow, forced appreciation, tax advantages Control: rent out storage space separately, or garage, solar panels

Diversification.

Our goals: lifestyle and charitable return

9Why NOT Real Estate?

REI with a Cause! www.AspireRealEstate.ca What is biggest risk in RE investing?

How can you control that risk?

Here to present both sides.

Write down what you think is the biggest risk in RE?

10Why NOT Real Estate?

REI with a Cause! www.AspireRealEstate.ca Lower liquidity

More education required?

It is not passive income

There is always risk

This is often higher with shorter term strategies

11

REI with a Cause! www.AspireRealEstate.ca Do you want to be a real estate investor?

Why?

Do you not want to be a real estate investor?

Why not?

Ask Yourself:It requires variable amounts of time and other skills

Education (whats a good investment) Communication skills (tenant issues) Practical skills (fixing tap example) Organization (bookeeping, raising money etc) Marketing (tenant placement)

Overall: willingness to learn, positive attitude (things will go wrong flood example), perserverance identify your strengths and weaknesses to help you decide if you want to do it and what strategies/tactics to use12Different Types of RE Investing?

REI with a Cause! www.AspireRealEstate.ca REITs Second mortgages Pooled investment / private equity fund Money partner (in a JV) Realtor Mortgage broker Property manager

If you are interested in other techniques, then we may be able to point you in the direction of someone doing it

What we know about and what we dont

What were going to be talking about here

13What is Your RE Strategy?

REI with a Cause! www.AspireRealEstate.ca Canada vs. US (or elsewhere)

Residential vs. Commercial

Single vs. multi-family (>4 units)

Duplexes, triplexes, fourplexes

Condo, townhouse, SFH, recreational

US: not something that has ever interested us. Be careful of deals go and visitWe have properties in Spain, know people who have bought bare land in Costa Rica

Residential: simple to understand, larger market, lower investment, easier to find tenantsgovernment loves tenants, lower cashflow (usually), leases easily brokenCommercial: long term leases, no rent restrictions, less tenant protection, financing can be easier to obtain (non-personal)larger amounts of money, more analysis, harder to fill, higher vacancy rates, bigger risks

Multi-family:can be great but get specific training. More money involved and relies more on appreciation. Stabilization periods. Different financing methods.

Duplexes:live in one unit and rent others (basement suites). Have to deal with all tenant issues. Tenant squabbles even if youre not living there.better cashflow. Less vacancy effect.

Recreational:management and placement fees, calendar occupancy, location, wear and tear

Strata:lower price point (usually), mtc fees, other tenants (YCW), stabilty, special levies, CRF, DR but lower mtc

SFH:complete ownership, simple, harder to cashflow (no suite or RTO) due to higher price point and more mtc

Start with something you know and develop from there.

14What Are Your RE Tactics?

REI with a Cause! www.AspireRealEstate.ca Should be driven by the market, the cycle, your experience, your strategy and your goals.

Flips