Spring Break 2018 - Anna Maria Island, Florida.

Recently Funded Transactions

* Commercial Term Financing *

CATEGORY:  Term Financing for a redevelopment site in West Vancouver

LOCATION: West Vancouver, BC (Ambleside District)

$8,500,000 Redevelopment / Land Assembly Loan .  Rate 4%, funded with a major lender, who will assist construction financing once re-zoning is complete.

* Construction Financing *  

LOCATION - North Vancouver

$2,810,000 1st mortgage (74% of total cost) to purchase the property and for building a single family spec house in North Vancouver.  Total project costs $3,800,000.  Appraisal $4,800,000.  Rate, Prime +1.50%, fully open.  Approval was based on the customers experience and net-worth.  No personal income required.  

If you are in need of Construction Financing for a Single Family property or a Multi Family project, feel free to contact me.  

P: 250.514.9667  

E: Mgbourassa@gmail.com

The Top 5 Real Estate Calculations Every Investor Should Memorize

Despite what many of us math-allergic folk would prefer, real estate does involve some math. Luckily, most of the formulas are simple and straight-forward. In fact, if you can master the calculations below, you should be just fine.

1. CAP RATE

Net Operating Income / Total Price of Property

This calculation is mostly used for valuing apartment complexes and larger commercial buildings. It can be used for houses and small multifamily too, but operating expenses are erratic with houses (because you don’t know how often and how bad your turnovers will be).

You want to have a cap rate that is at least as good, preferably better, than comparable buildings in the area. I almost always want to be at an 8 cap rate or better, although in some areas like Vancouver or Toronto, that’s not really possible. And always be sure to use real numbers or your own estimates when calculating this. Do not simply use what’s on the seller-provided pro forma.

2. RENT / COST

Monthly Rent / Total Price of Property

This is a great calculation for houses and sometimes small multifamily apartments. That being said, it should only be used when comparing the rental value of like properties. Do not compare the rent/cost of a property in a war zone to that in a gated community. A roof costs the same, square foot for square foot, in both areas. And vacancy and delinquency will be higher in a bad area, so rent/cost won’t tell you what your actual cash flow will be. The the old 2% rule can lead investors astray, and they shouldn’t use it. But when comparing like properties in similar areas, rent/cost is a very helpful tool.

For cash flow properties, you definitely want to be above 1%. We usually aim for around 1.5%, depending on the area. And yes, I would recommend having a target rent/cost percentage for any given area.

3. GROSS YIELD

Annual Rent / Total Price of Property

This is basically the same calculation as above but flipped around. It’s used more often when valuing large portfolios from what I’ve seen, but overall, it serves the same purpose as rent/cost.

4. DEBT SERVICE RATIO

Net Operating Income / Debt Service

This is the most important number that banks look at and is critical for getting financing. Generally, a bank will look at both the property’s debt service ratio and your “global” debt service ratio (i.e. the debt service ratio of your entire company or portfolio).

Anything under 1.0 means that you will lose money each month. Banks don’t like that (and you shouldn’t either). Generally, banks will want to see a 1.2 ratio or higher. In that way, you have a little cushion to afford the payments in case things get worse.

5. CASH ON CASH

Cash Flow / Cash In Deal

In the end, this is the most important number. It tells you what kind of return you are getting on your money.

This is a critical calculation not only when it comes to valuing a property, but also when it comes to evaluating what kind of debt or equity structure to use when purchasing it.

The math isn’t that bad. No rocket science here luckily. Instead, there are just a few handy calculations and rules to evaluate properties before purchase and analyze their performance afterward. Memorize these, and you should be fine.

January 2018 Foreclosures !

Attached $1,000,000 +
Detached $0 - $1,000,000
Attached $0 - $250k
Attached $500K - $1,000,000
Attached $250K - $500K
Detached $3,000,000 +
Commercial Foreclosures
Detached $2,000,000 - $3,000,000
Detatched $1,000,000 - $2,000,000

Foreclosure properties are always popular. Contrary to US television shows, these properties do NOT sell for pennies on the dollar here in Canada. 

Contact me if you are interested in these , or any other type of real estate. I will help connect you with a Realtor experienced in what you are looking for.

Recent Transactions

* CONSTRUCTION FINANCING *

CATEGORY:  Single Family Luxury Home

LOCATION: West Vancouver, BC (British Properties)

$3,000,000 Construction Draw loan for a single family home in North Vancouver.  Prime + 1.50% at 75% Loan to Cost ratio, home appraised end value 4,600,000.

If you are in need of Construction Financing for Single Family or a Multi Family project, feel free to contact me.  

P: 250.514.9667  

E: Mgbourassa@gmail.com

How to Keep the CRA Away

By Ron Brough, Durham Region Accountant and Tax Professional, Your Bottom Line

Have you ever wondered how the CRA (Canada Revenue Agency) decides who to "pick" on; as in which returns they're going to look at and who they are going to harass? 

While there is no exact formula, there is a way to put the odds in your favour. A big part of an experienced local tax professional's role is to keep CRA off your doorstep.

One of the best ways of doing this is to file your returns ON TIME, EVERY TIME and to be as consistent as possible year to year. 

if you would like to learn more strategies and techniques around this concept.  "When the CRA comes knockin', Ron sends them walkin!"

Want more info? Contact Ron Brough directly at 905.431.8276 or ron@yourbottomline.ws, and tell him you saw his article in my newsletter.

*

The Best Insults In History

The extremely witty and much-loved British Prime Minister Winston Churchill tops the list with his verbal spat with Lady Astor. The conservative dame forever admonished Churchill for his cigars and alcohol habits, and Churchill was not one to take the insults lying down.

Of their famous squabbles, the most memorable is when Astor commented, “If you were my husband, I’d poison your tea.” Churchill’s riposte? “Madame, if you were my wife, I’d drink it.”

If you would like to see some famous insults by a variety of well known individuals, click on this link http://allthatsinteresting.com/best-insults-history

Mortgage Approval - Rule Changes Increase The Challenge

The new mortgage regulations were aimed directly at federally regulated lenders such as RBC, CIBC, BMO, etc, but initially did not effect the provincially regulated lenders such as Coast Capital, VanCity, Blue Shore etc. Well they now have. 

BC Credit Unions, by choice, are now changing their guidelines:

- Increasing qualifying rate (VanCity 3.69% to 4.64%)
- Decreasing amortization (VanCity 30 year to 25 year)
- Getting out of certain lending areas (Blue shore does not lend to Surrey anymore)

Now, more than ever, an experienced, Licensed Mortgage Broker, is your best resource to put together your best options.

Call me today to discuss your real estate financing plans. I am always here to assist you!

Multi-Families For Sale - 4 Units and Up

206 Boyd Street - Quesnel
651 Wade Avenue - Quesnel
549 Barnard Street - William Lake
1221-1223 Park Avenue - Prince Rupert
9603-5-9607-9 96 Street - Fort St.John
4126-4130 1st Avenue - Prince George
136-138 Raven Place - Prince Rupert
2040-2046 Bowser Avenue-Prince George
4166-4170 1st Avenue - Prince George
1184 N 2nd Avenue - Williams Lake
8804 89 Avenue - Fort St John
7903 95 Avenue - Fort St. John
51409-51423 Yale Rd - Rosedale
101-104 2846 Range Road - Prince George
46167 Cleveland Avenue - Chilliwack
14306-14308 Melrose Drive - North Surrey
397 Aspen Street - 100 Mile House
1-8 10204 98 Street - Fort St. John
1479 3rd Avenue - Prince George
10219 96 Avenue - Fort St. John
3449 14th Street - Houston
681 Edkins Street - Quesnel
46101 Princess Avenue - Chilliwack
480 Thacker Avenue - Hope
4502 Lazelle Avenue - Terrace
626 E Gorge Road - Victoria
9827 97 Avenue - Fort St. John
76 Coburg Street - New Westminster

Top Ten Towns and Cities to Invest in British Columbia

Real Estate Investment Network released the Top Ten B.C. Towns and Cities to invest in at the ACRE event three weeks ago. 

Based on the report, Surrey, the second largest city in B.C.and the fastest growing, has the diversity and strength required to lead the province in real estate investment potential.

Studying 36 economic and market factors, REIN identified B.C. real estate markets that are poised to outperform over the coming five year period. The detailed report also provides additional analysis that concludes where each market is in the real estate cycle and what to expect as the cycle continues.

Ranked in order of potential for housing market strength over the coming five year period:

1. Surrey

2. Abbotsford

3. New Westminster

4. Victoria

5. Kamloops

6. Kelowna

7. Chilliwack

8. The Tri-Cities of Coquitlam, Port Coquitlam and Port Moody

9. Burnaby

10. Vancouver

Receiving honorable mentions, in no particular order, are:

Fort St. John

Dawson Creek

The Township of Langley

Mission

Maple Ridge

While most think the Lower Mainland's housing market is priced 'out of this world', limited supply and increasing demand continue to drive this market. These areas provide opportunity for those who know the right investment strategies and tactics to use at the right time.

12 Reasons Why Rental Properties Are the best Investment

It is no secret that I love multi-family rental properties. Rent-to-own or flipping properties might be fun but rental properties is my true business love. Let me explain why:

1. Ability to Purchase with Leverage

Rental properties are great because you can borrow the bank's or someone else's money to increase the potential return.

2. Ability to Hustle for Greater Returns

Not only can I leverage my cash, but I can also leverage my time and abilities to make magic happen in this game - something difficult to do with other investments.

3. Ability to Manage my Investment Directly

With a rental property, I am directly responsible for the outcome of my investment. It is up to me to analyze a property before I buy it; it's up to me to ensure the property is in a good condition and it's up to me to ensure the property is performing at peak performance.

4. People Always Need a Place to Live

The real estate market will go up and down, but the beauty of rental properties is that demand will never end. People always need a place to live, so unlike the latest tech trend, real estate investment is an investment that will last.

5. It's Worked for Millions of People Before Me

Perhaps one of the greatest benefits to rental property investing is the proof of concept handed down by millions of investors before us. Since the dawn of human civilization, landlords have built wealth by owning and leasing out residential property.

6. Fairly Stable and Predictable

Yes, events such as the market collapse in 2007 do happen, but rental property owners who were investing for long-term gains did not suffer like those who were trying to be fancy and were investing out of greed.

7. Incredible Variety

Rental properties also offer an incredible amount of opportunity within the asset class. I can invest in single family houses, small multifamily properties or large multifamily apartments. The possibilities are endless.

8. Simple and Straighforward

Although I will never claim that working with rental properties is easy, I do maintain that investing in rental properties is fairly simple and straightforward. The strategies for success in real estate investing is not overly difficult to learn or master.

9. I Can Buy Below Market Value

One of my favorite reasons for investing in rental properties is my ability to find properties that I can buy below market value by dealing with the Sellers directly.

10. Insider Trader is Legal

I know I won't end up in jail like Martha Stewart because  as a real estate investor I can leverage any secret knowledge I can find to benefit my investments. If I know that a new light rail or rapid transit is moving into a neighborhood, I can jump in and swoop up properties before word gets out.

If I hear that a major industry is leaving an area, I can get out of that area before the market declines.

11. Multiple Ways to Profit

One of the greatest benefits of rental property investing, especially compared with other real estate niches and strategies, is the opportunity to capitalize on all four of real estate's major profit sources:

 - Cash Flow

 - Appreciation

 - Mortgage Paydown

 - Tax Benefits

12. Not Having to Be Present to Make Money

Finally, I love the idea that I can make money without physically needing to be present. That's called a "job", and I want to avoid that.

Do understand that real estate is not generally a 100% passive activity, but over time, the systems you create can help you outsource most of the landlording process.

The dollars will roll in whether you get out of bed in the morning or not.

Island View Beach (Victoria, BC)

Down set hut.... 

Multi-families for Sale - 4 Units and Up

616 W 7th Avenue - Prince Rupert
4031 1st Avenue - Prince George
10219 96 Avenue - Fort St John
1744 Spruce St - Prince George
521 Victoria St - New Westminster
5558 Beaver Creek Rd - Port Alberni
6750 Dow Avenue - Burnaby
6779 Sussex Avenue - Burnaby
76 Coburg St - New Westminster
37955-37959 Westway Ave - Squamish
879 Johnson St - Prince George
5732 Vedder Rd - Chilliwack
2581 Kincome Place - Port McNeil
4045 1st Avenue, Prince George
17700-58 Ave - Cloverdale

October 2017 - Commercial Activity

October 2017 - Business w Property - BC Wide
October 2017 - Agri Business - BC Wide
October 2017 - Multifamily - BC Wide
October 2017 - Land - BC Wide

Lots of opportunities in the Commercial world.. Here is this months new listings in each Category, call me with any questions!

Pender Island Sea Planes

Multi-families for Sale - 4 Units and Up

616 W 7th Avenue - Prince Rupert
4031 1st Avenue - Prince George
10219 96 Avenue - Fort St John
1744 Spruce St - Prince George
521 Victoria St - New Westminster
5558 Beaver Creek Rd - Port Alberni
6750 Dow Avenue - Burnaby
6779 Sussex Avenue - Burnaby
76 Coburg St - New Westminster
37955-37959 Westway Ave - Squamish
879 Johnson St - Prince George
5732 Vedder Rd - Chilliwack
2581 Kincome Place - Port McNeil
4045 1st Avenue, Prince George
17700-58 Ave - Cloverdale

Pender Island Sea Planes

Mortgage Financing Is Becoming More Difficult

There has been a lot of legislation since 2008 that has come down to tighten mortgage financing.  

What most people don't realize, is a large portion of it only applies to federally regulated lenders.

Provincially regulated lenders such as credit unions have not been exposed to these regulations (as much).  

So, what's the problem?

Well, the credit unions are now jammed with deals that the federally regulated lenders can't touch.  

This does 2 things:

1. Underwriting can take a month + 
2. Higher rates

What's the solution?
Plan your exact situation relative to the type of property you want to purchase. 

Who does this?
Me.

September 2017 - Commercial activity

September 2017 - Multi family - BC wide
September 2017 - Agri Business - BC wide
September 2017 - Business w Prop- BC wide
September 2017 - Land - BC wide

this months hot list. 

July 2017 Commercial properties

July 2017 - Agri Business - BC Wide
July 2017 - Multifamily - BC Wide
July 2017 - Business w Property - BC wide

Here is a list of this months Commercial properties, lots of different opportunities available. 

the 'Dog Days' of Summer

10 Habits to Adopt if You Want to Become a Real Estate Investing Legend

When people start talking about greatness, there's always something a little surreal about it. Greatness is for athletes and activists and the type of people that others make documentaries about. Greatness is a characteristic that's sometimes difficult to see applied to yourself (if you're a humble type) in that larger-than-life kind of way.

Just like the legends in your field, we have role models and mentors in real estate investments as well. A great example is our very good friend Mr. Don Campbell from Real Estate Investment Network (REIN). He is a role model and a mentor to thousands of real estate investors and has tons of influence in our real estate investing business.

Here are the 10 keys to building a legendary reputation in real estate investment.

1. Be Kind

As real estate investors, our business is deeply people based. How we treat the people around us is paramount to our success

2. Master your niche

Be a master. Hone in on your niche and completely master it. Be the undisputed champion. Be the person who talks about your area of real estate investment and causes everyone to stop and listen.

3. Stay humble

Humility is one of the best qualities you can have, period - not just for public opinions sake, but because it prevents hubris, which prevents us from making stupid mistakes. Stay humble and seek to educate first. Learn to educate in your niche from a point of humility, and your legend will be on its way.

4. Never stop learning

Hand-in-hand with humility is realizing that you always have more to learn. No matter how long you have been in the real estate investment game or how old you are, keep pushing your education forward.

5. Find your own mentors

One way to keep learning is to sit at the feet of the investors and experts you trust most.The company you keep matters. If you want to learn from and emulate them, there's a reason.

6. Make genuine connections

Network, network, network! So many investors neglect this key step in their journey. Building up professional connections is key not only to generating leads, but to crafting a network that creates the support and structure your business needs in a way that's beneficial for everyone.

7. Go above and beyond

The best real estate investors have something in common: They all go above and beyond. You'll never find a legendary real estate investor who settles for a second rate. They all value excellence - in their services, in their properties, in their deals, in their effort, in everything.

8. Value the details

Another way to ensure your status as legend in real estate is to simply pay attention and value the little things-details. People pay attention to those little details that add up to a whole lot of integrity.

9. Own your mistakes

A huge part of your reputation hinges on how you deal with failure and mistakes. The way you deal with the worst of what real estate investing throws at you says a lot to your colleagues.

10. Keep pushing forward

In the face of difficulties, the best thing you can do for your reputation is to keep going. It won't be easy, but when you show perseverance and the will to carry on, it says a lot about you. Many of the best investors you will find today, those who may truly be legendary, are the ones who persevered through the toughest real estate climates any of us can remember. They put their heads down and went to work - not after the crisis, but through the crisis. They kept pushing forward; they took hard meetings, made tough phone calls, and continued to believe they would succeed. These are the true legends of real estate, and their example of finding a way should be one you seek to emulate.

Family Dinner

Engineer quits 6 figure job to build house to sell

My engineer client decides to leave his 6 figure $$$ day job and builds house to sell. He was scared stiff.  I financed his project and advise him throughout the process.  Halfway through, someone offered to buy it from him.  In less than 6 months he made more than twice his annual income.  Now he's scared to think if he had stayed where he was at and only made half of that and toiling away over 11 months of his life instead of 6 months (doing what he dreamed about all his life).  Kudos to you Haibo!  Want to build your own home or become a developer?  I can help and even introduce you to Haibo.

10 Habits to Adopt if You Want to Become a Real Estate Investing Legend

When people start talking about greatness, there's always something a little surreal about it. Greatness is for athletes and activists and the type of people that others make documentaries about. Greatness is a characteristic that's sometimes difficult to see applied to yourself (if you're a humble type) in that larger-than-life kind of way.

Just like the legends in your field, we have role models and mentors in real estate investments as well. A great example is our very good friend Mr. Don Campbell from Real Estate Investment Network (REIN). He is a role model and a mentor to thousands of real estate investors and has tons of influence in our real estate investing business.

Here are the 10 keys to building a legendary reputation in real estate investment.

1. Be Kind

As real estate investors, our business is deeply people based. How we treat the people around us is paramount to our success

2. Master your niche

Be a master. Hone in on your niche and completely master it. Be the undisputed champion. Be the person who talks about your area of real estate investment and causes everyone to stop and listen.

3. Stay humble

Humility is one of the best qualities you can have, period - not just for public opinions sake, but because it prevents hubris, which prevents us from making stupid mistakes. Stay humble and seek to educate first. Learn to educate in your niche from a point of humility, and your legend will be on its way.

4. Never stop learning

Hand-in-hand with humility is realizing that you always have more to learn. No matter how long you have been in the real estate investment game or how old you are, keep pushing your education forward.

5. Find your own mentors

One way to keep learning is to sit at the feet of the investors and experts you trust most.The company you keep matters. If you want to learn from and emulate them, there's a reason.

6. Make genuine connections

Network, network, network! So many investors neglect this key step in their journey. Building up professional connections is key not only to generating leads, but to crafting a network that creates the support and structure your business needs in a way that's beneficial for everyone.

7. Go above and beyond

The best real estate investors have something in common: They all go above and beyond. You'll never find a legendary real estate investor who settles for a second rate. They all value excellence - in their services, in their properties, in their deals, in their effort, in everything.

8. Value the details

Another way to ensure your status as legend in real estate is to simply pay attention and value the little things-details. People pay attention to those little details that add up to a whole lot of integrity.

9. Own your mistakes

A huge part of your reputation hinges on how you deal with failure and mistakes. The way you deal with the worst of what real estate investing throws at you says a lot to your colleagues.

10. Keep pushing forward

In the face of difficulties, the best thing you can do for your reputation is to keep going. It won't be easy, but when you show perseverance and the will to carry on, it says a lot about you. Many of the best investors you will find today, those who may truly be legendary, are the ones who persevered through the toughest real estate climates any of us can remember. They put their heads down and went to work - not after the crisis, but through the crisis. They kept pushing forward; they took hard meetings, made tough phone calls, and continued to believe they would succeed. These are the true legends of real estate, and their example of finding a way should be one you seek to emulate.

How to teach your kids about taxes

There’s a 40% chance Canadian home prices level off, expert says — but how about a crash?

The top economist at RBC’s investor division has estimated the chances of the three possible and very different outcomes for Canadian home prices.

Put simply, the options are “up, sideways, or down,” but Eric Lascelles, the chief economist for RBC Global Asset Management, gets more specific.

“The most likely outcome… is that home price gains slow to a snail’s pace or even go sideways,” writes Lascelles in his April 24-28 #MacroMemo published on professional social media site LinkedIn.

Lascelles estimates there’s a 40 per cent chance of this happening, and says “this is certainly what regulators desire,” nodding to Ontario’s Fair Housing Plan, unveiled last week.

In this scenario, the downturn in housing activity and prices would shave off a few percentage points from the national GDP over several years, Lascelles states.

As it stands, the housing market generates roughly 15 per cent of the Canadian GDP, whereas 10 per cent would be “normal.”

Policymakers have been busy trying to tamp down what many observers agree is unsustainable growth in Canada’s hottest housing markets.

The Fair Housing Plan is a 16-point policy, largely meant to calm housing markets around southern Ontario, including the Greater Toronto Area’s, the most active in the country.

Greater Toronto Area home prices averaged $916,567 in March, up 33.2 per cent annually, according to the Toronto Real Estate Board, a consistent opponent of intervention to curb demand.

Continue Article Here...

Multi-families For Sale - 4 Units and up.

4526 Park Avenue, Terrace
367 Vaughan Street, Quesnel
46915 Yale Rd, Chilliwack
907 Twelfth St, New Westminster
46179 Princess Avenue, Chilliwack
9259 Young Rd, Chilliwack
1064-1084 Nalabila Blvd, Kitimat
22225 119 Avenue, Maple Ridge
5844 Glover Rd, Langley
9 1755 Agassiz-Rosedale Highway
3 46008 Bole Avenue, Chilliwack
7564 Birch Street, Mission

Call me or send an e mail if you want information or the financials on any of these listings.