What is the Real Estate Cycle?

Here's a quick video by Greg Head co-author of a valuable research book I recently read:
Secrets of the Canadian Real Estate Cycle 
The title says it all, thanks Greg!

Hamilton + Canada = Winners

Hi Everyone,
Here is a short impactful article that says it all about the merits of investing in Canada and subsequently in Hamilton.
At CFI Properties we focus on Hamilton for good reasons and well... Hamilton is in Canada and we do all the due diligence on our properties to ensure they are winners.
Enjoy the article (by Don R. Campbell with Allyssa Epp):
http://www.canadianrealestatemagazine.ca/expert-advice/forecasts/item/830-why-canada-trumps-the-us

Hamilton Gets It!

Here is a quick update to why Hamilton really does get it. Their Economic Development Office is and has been bringing cutting edge industry & development to the city - here:

http://www.thespec.com/news/business/article/593194--mac-a-role-model-for-global-r-d-village

and here:

http://www.thespec.com/news/business/article/590793--city-succeeds-in-luring-new-corporate-investment


And after reading this book:
http://www.amazon.ca/Secrets-Canadian-Real-Estate-Cycle/dp/0470964715

I am realizing Hamilton is early in the recovery according to several key drivers.

ed@cfiproperties.ca

Do you Get it Yet?

I usually try to use the KISS principle: Keep It Short & Sweet.
Sometimes less is more.


If you are a Real Estate Investor anywhere in Southern Ontario (or not) you must read this recent article in the Hamilton Spectator:

http://www.thespec.com/news/local/article/581167--hamilton-hot-property

OK the article is a little long (this blog post is short) and that makes it sweet!
By now you should be getting it about Hamilton.

ed@cfiproperties.ca

I Like to Buy Quality

What you see here in case you don't recognize it is one of the most functional and durable tools I own for my bike maintenance. It is a Zefal floor pump and other than the connector hose and valve stem adapter it is all original. This pump is over 20 years old and also probly one of my most frequently used tools. It can bring my road bike tires from flat to 110 psi in 30 seconds to 1 minute.
So what right?
What I'm using this analogy for is to show I recognize quality and that's what I buy.

Our most recent acquisition was a 3 bed, 1.5 bath townhouse in a complex where I own 2 other units. The minute I walked through I recognized the quality and value and the asking price was below that value. We purchased from a bank via Power of Sale at full asking price. When the unit was appraised for financing purposes it came in at $5K above purchase price. My investors & I earned $5K in appreciation the day of closing. When purchasing one of these townhouses we normally do between $5K & $8K of renovations. In this case we spent well under $5K and that was only because we needed all new appliances and a new garage door.

We did not need new paint, flooring, or bathroom updates - all done!

Thank you Mark Loeffler, Chuck Billingsley, Kevin Boughen, and Kim Tkaczuk + all other professionals on our team for making this transaction smooth and easy.
In these volatile times choose a secure, cash flowing investment like real estate in Hamilton Ontario.
CFI Properties specializes in properties in Hamilton and you can email me any time since I am more than willing to share information.
ed@cfiproperties.ca

The Landlord & Tenant Board is your friend (Whaa...?)

I bet the title of this post caught your eye!


Well I'm here to tell you the system works, maybe not efficiently and sometimes unfairly but it does work.
Having just been to the LTB for a hearing in which my agenda was to evict a non-paying tenant, I have a new respect for their system.
We've all heard the ranting before from non-landlords or uneducated investors: 'if you have a tenant who's not paying or wrecking the place you can't get them out'.
I've decided to remove the word can't from my vocabulary but thats another story...

Situation was we closed on a property May 30th, tenant was 'hard to find' on the first and/or second of the month. Left him a note, he called me on the third explaining he hadn't gotten paid for a contracting job...(ya, no reserve funds right!) and then failed to contact me at any point until Jeff gave him notice for hearing. Then the crying really started.
On hearing day his girlfriend showed up with one month rent in cash and a promise to pay arrears by the 22nd, if not- they are out immediately by court order.
AND heres the real kicker, they promise to be out by August 31st!!!
Everything I wanted plus the rent arrears, follow the system, it works.
I used Jeff Varcoe a professional property manager to ensure the process was conducted smoothly and efficiently.
Jeff Varcoe
Cornerstone Select Properties
1253 Westview Terrace
Oakville, ON
Internet: www.cornerstoneselect.ca  
We had our hearing on July 14, less than one month after Jeff filed the L1 (June 22nd)

Two lessons here:
1. Follow the system its in place both for landlords and tenants and if payment is late issue the N4 immediately.
2. Use professional services if you're unsure of the process.

Now if you want to invest your capital securely and profitably you should be contacting us at:
CFI Properties, the home of Cash Flowing Investments.
We are the Hamilton experts. (Hamilton is now rated the #1 city to invest in Ontario by Cutting Edge Research + #3 in Canada)
And I'm never too busy for your calls or emails:
ed@cfiproperties.ca 
905-329-1460

I Believe...

I remember after spending high school in Hamilton all I wanted to do was get out of there.
Dirty steel town...
Recently I've changed my perspective and that's what its all about!
I've never been more optimistic about the opportunities today in Hamilton and today's news flash is about believing in that tremendous potential, enjoy.
http://www.thespec.com/opinion/article/551226--we-must-believe-in-hamilton-again

And by the way if you are interested in investing in some tremendous cash flowing investment properties contact me today: ed@cfiproperties.ca

I'm tellin ya its not too late...

I keep saying its not too late to invest in Hamilton in fact its just getting started! 
NOW... a guy named Mr. Hamilton and this other guy Don (REIN) Campbell tell me its too late for me !!??

OK so I've been told, now what?
Well its not too late for YOU, so take some action. Watch the video and then come talk to me, even though its too late for me I do have plenty of info and lots of deals to send your way in the #1 city to invest in Ontario - HAMILTON!!
Contact me now I have deals waiting.

Who do you depend on for your retirement???

Hi Everyone,
Todays post is just a quick note and a link to a video of  one of the first people to give me a Financial Education - Robert Kyosaki.


There are 3 basic types of education: Academic Education (school), practical education (hands on experience), and Financial Education. Mr. Kyosaki is a passionate advocate of  'financial education'. He stresses that we must learn how to secure our own financial future and not depend on 'the government' or an employer pension to secure that future.

Some of my associates have accused me of being harsh in my statements (you know who you are) but I've got nothing on this guy...
Enjoy the video:

If you want to secure your own financial future by investing in Cash Flowing Investments - thats right - Real Estate - in Hamilton Ontario rated by REIN and Cutting Edge Research as the #1 place to invest in Ontario then contact me to find out how.
ed@cfiproperties.ca

OK this is a good time/place... but isn't it TOO LATE :-o ??

Yes its been a while... on my last post I wrote about: Is this a good time to buy?
Many of you that know me have heard my tongue in cheek remarks that its TOO LATE!
Let me explain, approximately 8 months ago I was at a networking meeting for Hamilton investors. At that time Hamilton was rated by Cutting Edge Research as the #2 spot in Ontario to invest in Real Estate which made myself and other established Hamilton investors somewhat satisfied. Basically this info confirmed my own research and experience.

But isn't it too late to buy in Hamilton?
Wow! That was a zinger of a question that I received from another investor at that meeting. I was floored. That told me several things: first this person was thinking like a speculator, they wanted to get in while the prices were (supposedly) low and sell in a year or 2 as they appreciated rapidly, and second they hadn't done their own research and likely hadn't read any of the ongoing research. I tried to explain that it was not so much 'timing the market' as it was Time in the Market. Hopefully I got my point across.

Ya but what about now - its too late now, isn't it?
OK now I'm being facetious, why? Because now Hamilton is rated as the #1 place in Ontario to invest, for many reasons that I won't elaborate on. Primarily due to the economic growth, proactive planning by their Economic Development Office, and infrastructure implementation.

Listen to this: Everybody wants the best deal, at the best time, in the best place... 
I know because I'm one of them and anybody that works with me can tell you how cranky I get when things don't go right!
Instead of looking for perfection try to keep progressing by investing in areas with strong economic fundamentals, in neighbourhoods you are comfortable with, and make sure your deals have sufficient cashflow and reserves to carry through.

Are you on Facebook - Yes?
Then please go to CFI Properties and 'like' the page. Thanks!

When is the best time to invest in Real Estate?

Is this a good time to buy?
This is probly the most common question I get when people find out I am an active Real Estate investor.
My answer varies but usually its something to the effect of: anytime is a good time, it depends on the deal and the area and what research you've done.
Well you know what the next question is right? What's a good area, is this a good deal etc. etc. All good questions but there is no one answer. Usually the biggest factor for the average person to consider is whether the property is for personal use (residence) or for an investment. Personal use is obviously a combination of lifestyle choice and income based affordability. For an investment many more factors come into play - I won't go into detail.

But what about interest rates, they're going up aren't they?
Well I don't have a crystal ball but I can make calculated assumptions based on the relevant advice of experts and our national and global economy + events.
Here is what expert Peter Kinch had to say recently.
He is Canada's foremost mortgage broker and frequently asked to speak on national television to give his analysis, enjoy! (if the link does not work, copy and paste into your browser)

http://www.youtube.com/user/PeterKinch?feature=mhum

Infrastructure and how it relates to... everything!

If you've been following any current events the past few weeks you can't help but hear what is ongoing in Egypt & Libya. Without going into the minutiae of the current failing government administrations suffice to say there has been a breakdown of the Infrastructure.
What happens first?
The first part of the infrastructure that crumbles is the rule of law. The military and civilian police forces become fractured and ineffective. As a result of a non unified ruling body petty crime erupts in isolated incidents and worsens as the infrastructure implodes further.
How does this apply to us?
A breakdown of infrastructure can happen in any organization of two or more people who work together as a team. Think of a marriage breakup where children are involved. This is a sad and tragic example of a family not having a unity base of support to draw from. Think of a work or sports situation where leadership in a certain area is challenged or somehow becomes ineffective. The truth is a strong infrastructure in an integral part of all of our lives.
Your own Real Estate Portfolio must have a Strong Infrastructure
Not surprisingly your Real Estate Portfolio must operate with a strong teamwork infrastructure. The infrastructure must be structured and maintained vigilantly to keep its integrity. Two of my fellow investors, friends, and fellow bloggers Neil Uttamsingh http://www.firstrentalproperty.com and Joey Ragona http://engagedinvestor.ca/ are examples of investors that have built up an infrastructure to support their business. They also share those steps and the many lessons learned along the way.
I have also seen where certain investors have not built a solid infrastructure to support their portfolio. Then we see what happens similarly to the current events in Egypt and Libya.
However the market acts much more swiftly and decisively and a portfolio can quickly become a row of dominoes falling into foreclosure.
Whether you are building your own portfolio or investing with another experienced investor ensure you or they have built a strong infrastructure based on prudent financing and professional affiliates to mention a few important points.
Contact us at www.cfiproperties.ca and don't be afraid to ask us about our infrastructure because as we now know it matters a lot!

Your perception is Your Reality

Perception = Reality
Do I need to say more? The truth is even though we may be aware of it our perception of everything in life creates our ultimate belief in how we view things.
Here is a very vivid example: approximately 3 years ago I met my good friend Todor Yordanov of Proact Investments www.proactinvestments.com who had begun investing in Hamilton. He and I were both relatively new investors with one or two properties. He was describing to me his most recent property aquisition in Hamilton. Now this was a place I definitely wanted to stay away from. I had a perception of Hamilton as a dirty steel town with a tough tenant profile.
Cashflow? no way!
When Todor rolled off the numbers on his property I immediately thought this won't cashflow. I went home and plugged the rent numbers into the average price of townhomes in that area and was surprised to see that yes it did cashflow just as Todor had described it. I wouldn't believe it because my negative perception  of Hamilton had influenced my beliefs. Todor gave me the name of a very knowledgeable realtor with whom he was working, Gary Vandervelde. I phoned Gary the next day and he was good enough to spend the next 30 minutes on the phone with me asking me about my investment goals and describing his experiences growing up in Hamilton as well as working as a builder and subsequently as a realtor.
The following week Gary showed me several townhomes in the same area as Todor had purchased his and 1 week later I had an accepted offer in the same complex as Todor was invested in!
Hamilton Rocks!!
Almost 3 years later I still own that townhouse and 6 additional townhouses and 1 duplex. That property has an A+ tenant and in the last quarter my investor and I split a very nice cashflow payment well in excess of $1500. Hamilton is rated by the Real Estate Investment Network (REIN) as #2 of the top 10 investment towns in Ontario. Hamilton survived the recent recessionary downturn with barely a bump in the road, 4 to 5% increases in values and less than 3.5% vacancy rate.
Here is the real lesson:
Before I actually fully commited to focusing on Hamilton as an investment area I spent some time researching the city as I was trained to do by REIN. Everywhere I looked I saw the types of fundamentals at work that indicate a strong future. Things such as job growth & demand, a strong and proactive Economic Developement office, transportation expansion, areas of gentrification, and a solid plan for the future in cutting edge technologies.
My perception had changed and I had proven myself wrong.
Oddly enough many other investors are seeing the same as Todor and I. Many are also investing in Hamilton and if you would like to learn more about them, or mine and Todor's strategy please contact me and I will help you with further information and put you in touch with any other of these investors and their related professionals.

Do I like it? Am I good at it?

Value & Time
Last post I wrote about the value of time vs the value of money. I explained how time is worth far more since it is not renewable, while money is in fact renewable. Income can increase exponentially and time is finite.
What do I spend time on?
If I'm going to spend time doing something for myself or my business I ask myself two questions:
Do I like it? & Am I good at it?
Obviously yes answer to both questions means I will do it, no to both means I won't. So if its no and I can hire someone to do it, it gets done by someone better and who enjoys it. Its not always cut & dry so common sense and judgement comes into play.

I bet you want a real example, yes?
Recently I came across the opportunity to hire someone to optimize my social network marketing. It didn't take long to figure out this was a no brainer for me. Remember the 2 questions? Yup its no & no so away I went. Dani has already taught me a lot & done a lot, and we're just getting started. The cost was very reasonable and the time saved was immeasurable.

So don't spend time on stuff you dislike and/or you're not good at to save a few bucks. Money is only a medium of exchange, Time is precious, use it, guard it, enjoy it! Life is too short.
Want to see some of what Dani did for me go here:
http://www.facebook.com/?ref=home#!/pages/CFI-Properties/188016691218465

And if you want to contact Dani for some very cool Social Networking opportunities, go here:
http://www.facebook.com/?ref=home#!/pages/The-Like-Button/173153549369037
You can also try dani@thelikebutton.ca

Value-how it applies to life, how it applies to Real Estate...

Recently I came down with a sharp knee pain diagnosed by my physiotherapist as a strained ‘miniscus’. After about 4 wks of pain, 2 wks of treatment and no progress my pain suddenly worsened by simply walking down the street.  After speaking  to my physio & a sports med Dr an MRI was recommended. This entails a 6 to 12 wk wait – in Ontario. Without going into a rant about how our blundering provincial gov’t is mismanaging a superb medical system I decided very quickly to travel  1 hr by car to Buffalo NY for an MRI the next day!!  Results could be produced within 48 hrs, prior to this both the Dr & physio warned me of the cost  ~$500 – ouch!  To me this was worthwhile and good Value since as an active person who thrives on constant high end physical activity waiting that time to produce MRI results in Ontario would detract from my quality of life and rob me of time.  This is the crux of the matter, that time is non-renewable, the money could be created or renewed. Time would be gone forever.

The same applies to my RE business. When evaluating a property,  $5K more or less on purchase price is not significant when it is packaged in the financing and amortized over 30 to 40 yrs.  Or when hiring a contractor or service provider the cost is secondary when evaluated according to the efficiency & professionalism of their work.  If they do quality work  and complete it quickly  that  provides good value because it saves me time both now by not ‘chasing’ them and later by not repeating the work. Anyone that has done a home renovation knows this very well ;)

VALUE comes from providing a quality product or service in a reasonable amount of time. Monday I was diagnosed with possible ligament tear, by Thursday I was looking at results. Compared to waiting 2 months and missing out on life, this was worth a paltry $500!

If I would have done _________ ...

OK you fill in the blank, if I would have done this or that sooner or back then.
Here's an even better one: If I had known back then what I know now then I would have acted differently...
So how do you respond to these thoughts? I know I always try to learn from it by moving forward. Learn from the past, live in the present, and plan for the future.
In the investing world, specifically Real Estate which is where I spend my time (and money) that means I learn a system for analyzing properties and the financial structure surrounding them. The financial structure represents opportunity whether or not the opportunity is good (profitable) or not is answered by the system which I implement.
The one word that describes the difference between successful investors and those less successful is action
Successful investors constantly take action and move forward. The type of action I take is determined by past experience and future plans.
I've taken some actions recently that were out of my comfort zone. The simple reason for my actions is exactly the title of this post, I didn't want to say later that I wish I had...
I urge everyone to take positive actions to move themselves forward, I know I will.