Wishing you all a great summer. Nice and hot in Alberta!!
The blessing and curse of the internet are one in the same in that there is so much information out there. Most people do not visit more than 20 websites and it is difficult to keep up with so much change in our world. I am not an economist nor have I ever claimed to be. I try to find the best sources out there and inform myself from those who are more knowledgeable on the subject than I am. If there is only one economics website to visit that would be an invaluable tool to all of our worldwide readers, it would have to be the blog of Martin Armstrong.
This is truly world class research from someone who has merged his understanding of computer science, physics and economics. I have never heard of any economist who has such a vast understanding of physics and utilizes it to predict trends before anyone else can even begin to understand it. If Wall Street and bankers worldwide listen to him, then perhaps you can too!
Many people have been asking (with great excitement) how close we are to reaching our ultimate long term goal. Instead of giving you the exact date, we will say that is very close and is rapidly approaching. Thank you to all of our readers around the world who keep on coming to our website for the latest trends regarding Alberta real estate!!
Although January is not yet over, we can easily say that we have broken our all time record for the number of countries that have visited this site this month!!! Every continent has been visiting with great interest and we wish to thank all of you for your positive feedback!!
I hope you all had a wonderful holiday season and now we slowly get back to the daily rituals we left behind last month. This leads to my question for the year of what does 2015 have in mind for you?
Many people have started and already quit their new years resolutions. If you wish to make a resolution that will work, make it next month or anytime when peer pressure is not an issue. Do not make too many resolutions otherwise you won’t be able to adhere to them all. No matter how personal or impersonal your goal make sure you have something to shoot for this year and good luck in your endeavors!
Have a good weekend!!
Many novice investors consider insurance as an afterthought when buying a property. They put a lot of effort into investigating their mortgages and rents but neglect this important topic. Insurance companies constantly change their policies and so you must be fairly current in your understanding of policies. One needs to check to see if every property can be properly insured. Lenders will not give money to properties than cannot be insured (as occurred in High River due to the 2013 floods). That is why you should always remove your conditions on an offer to purchase after you have verified the insurability of a property.
Suppose you have an empty rental property and want it filled with a quality tenant as soon as possible. The most often tried and tested model is to advertise online and screen the tenants using your own due diligence system. This certainly can be used but what if someone had partially screened the tenant for you before you ever meet them.
Suppose you approach the human resource departments of several large employers in your area and let them know you have a rental property available. Large employers often bring in contract personnel for 6 months to one year of work and they need a place to stay. The employer sometimes will have no trouble prepaying for the entire rental term at the beginning so that you never have to worry about collecting the rent!!
Otherwise, they may know someone else that they can email on their company wide distribution lists and inform them of your place for rent. You know the employee has a stable job otherwise they would not be employed and an HR reference is always a positive indicator to you as a landlord.
This makes it win-win all around and you will develop a reputation for being able to accommodate an employers needs for their staff.
One of the critical points to a successful real estate transaction is the art of negotiations. This can be considered as either an art or a science and once you are aware of these tools, you will be the better for it.
One powerful technique is to never be the first person to give a number regarding the purchase/sales price in the deal. If you are making a purchase, the question to ask is “If I could pay you all cash and close quickly, what is the least amount of money you would offer me today for this property?” Do not say anything after this under any circumstances!!! When they give you a number, that is the point where you can counter offer and start the negotiations.
If you are ever asked the above question, do not respond with a number but rather with another question such as, “Thank you for your question. I would be glad to answer your question right after you give me a number first as I do not have one in mind.” You should always answer their question with a question of your own to put the onus back on them.
This is a powerful tool because you make the most amount of money the day you buy property as you can lock in equity.
For more information on this important topic, please visit: http://tinyurl.com/6trv72k
Earlier this week, the annual Forbes ranking of the world’s wealthiest people was published and as always the following statements are all true:
1) They are all prudent business owners first and foremost!!
2) Not one of them is a foreclosure expert.
3) Renovating properties was not the method any of them used to became billionaires.
4) With regards to the few who mention real estate in their net worth, it is the product in their business and not the end all be all solution to financial freedom.
5) The ones who dabble in real estate (such as Larry Ellison), are getting their funds from their businesses and not joint venture partners.
6) Great business skills defines success in financial matters.
I have said it before and I will say it again. You make your money in businesses and keep it in real estate. Businesses are the true wealth creation engine around the world because nothing can match their leverage and cash flow potential.