9935 Scurfield Drive NW Calgary T3L1V9

February 4th, 2017

New Listing in the fantastic community of Scenic Acres in NW Calgary

MLS number C4096745

Price $519,000

For more info contact Gord at 403-861-2256 0r by email 

Stunning home with substantial renovations inside and out.  Upon entry you will be wowed with the bright open layout, gleaming hardwood and fresh paint.  Newer kitchen features granite countertops, island, 2 pantries, SS fridge and gas stove.  Complete the main floor with an office/den and a 2 piece bath.  Upstairs the master retreat features vaulted ceilings, large 4 piece ensuite with jetted tub and a walk in closet.  Complete the upstairs with a 2nd bedroom, bonus room and main bath.  Downstairs features a massive rec room, a third bedroom with 4 pce ensuite and a large storage area with laundry and workshop.  In 2013 the exterior was redone with new shingles, siding, eaves & downspouts.  The yard is beautiful with a 2 tier deck with built in gas fireplace, vinyl fence and a double garage.  The Mature community of Scenic Acres offers great amenities with Crowfoot LRT, Crowfoot for all your shopping needs, community center, schools and the new French school is slated to open in Sept 2017.

Feb 1, 2017 Calgary Real Estate Market Snapshot

February 1st, 2017

What is really happening in the Calgary Real Estate market?

Feb 2017

Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate.  A simple way to keep up to date with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.

Absorption Rate (Months of Inventory)   (the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.4 to 4.0 Prices typically remain stable
Seller’s Market <2.4 Drives prices up

 

*** Absorption Rate***  

The absorption rate for all of Calgary increased this month meaning listings outpaced sales.   Detached Homes and Row Homes (Townhouses) increased marginally and we saw larger increases in Semi-Detached and apartment condos.

December   2016 January  2017 Change
Detached 3.01 3.17 0.16
Semi Detached 3.83 4.61 0.78
Attached – Row 4.75 4.73 -0.02
Apartment 7.59 8.40 0.81
Total City 4.04 4.34 0.31

 

Calgary Listing Inventory

January saw an increase of listings over December and this is to be expected as very few people want to list during the holidays.  Normal trends would predict that over the next few months we will continue to see more listings so a further increase in inventory.

Inventory December   2016 January  2017 Change
Detached 1719 1849 130
Semi Detached 368 383 15
Attached – Row 570 610 40
Apartment 1108 1269 161
Total City 3765 4112 347

 

Calgary Sales:

January saw an increase in sales in all categories except Semi Detached which is down by 13 sales.  This increase is fully expected as there are always more people buying in January than in December. What comes as a surprise to me is that the increase over December is only 14 more sales.  Personally I thought the increase would be more substantial.  The interesting and possibly good news here is that our sales were up 24% from January of 2016.

Calgary Sales   December   2016 January  2017 Change % Change
Detached 571 584 13 2.28%
Semi Detached 96 83 -13 -13.54%
Attached – Row 120 129 9 7.50%
Apartment 146 151 5 3.42%
Total City 933 947 14 1.50%

 

Calgary Real Estate Sales Prices: 

Prices did not change substantially this month.   Detached homes made the largest gain.  I find it surprising that Apartment Condos gained a little this month.  With such a high absorption rate I would predict apartment condos will lose more in the upcoming months.

  Sales Prices December   2016 Benchmark Price  January  2017 Benchmark Price Change
Detached 498,300 500,400 +2,100
Semi Detached 385,400 384,600 -800
Attached – Row 307,900 307,100 -800
Apartment 269,200 269,900 +700
Total City 435,400 437,400 2,000

 

 

Sales Prices “Year to Date”   – Same as Above 

 

 **Please note that these numbers include on Calgary homes and do change on a community basis and more so for towns.  This report does not include rural properties.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or Real Estate questions please feel free to contact us.

 

 

 

 

 

 

 

Calgary Real Estate Market Forecast 2017

January 19th, 2017

Every year the economist for the Calgary Real Estate Board put together a forecast for the agents.  Below is a summary of her predictions.  The full package gets into alot more detail about the Why looking at all the indicators that influence the market such as the Regional Economy, Energy Sector, Labour Market, Net Migration,Housing Market Activity, Rental Market, New Home Market & Resale Market.  For a full copy send me a request here.

CREB® forecasts a slow transition for housing in 2017

After a long period of economic downturn, Calgary’s housing market is expected to see some price stability in 2017, but not across all market segments and property types. Both detached and attached prices remain unchanged over 2016 levels, while apartment is forecasted to contract by another two per cent.

“The transition in the housing market will be a slow process,” said CREB® chief economist Ann-Marie Lurie. “We are entering the year with high unemployment rates and the possibility that job growth will not occur until the latter portion of 2017. These conditions will continue to weigh on housing demand, but supply is adjusting to weaker sales activity, which will eventually translate into price stability.”

City-wide sales are forecasted to total 18,335 units in 2017, a three per cent gain over 2016, but 12 per cent below long-term averages. This modest demand change will merge with declining listings and easing inventory in the new home market to support more balanced conditions and prevent further downward pressure on prices.

“This year is about moving away from extremely challenging conditions,” said 2017 CREB®president David P. Brown. “The transition is going to take some time, which means sellers need to stick with the fundamentals of pricing their homes correctly against other comparable product in the market. There’s still lots of choice out there for buyers, but major price declines are unlikely in most segments.”

Alberta’s economy was much softer than many predicted over the past two years, as prolonged weakness in energy weighed on other sectors of the economy, including housing. Since the start of the downturn in late 2014, price adjustments have ranged from a low of nearly five per cent in the detached sector, to a high of 11 per cent in the apartment sector. The amount of price change between these different areas of the market was based on how much oversupply there was in each sector at any given time.

Our housing market is moving toward a new equilibrium, but that shift is heavily dependent on stability in the energy sector and overall labour markets. There is also considerable risk from recent government policy changes that could derail expected gains in the second half of 2017. It’s a new outlook this year, but the market risks shouldn’t be overlooked.

For the entire CREB® forecast, contact me.

144 Scenic Glen Close NW Calgary NW Calgary T3L 1J6

January 4th, 2017

New Listing.  Rarely do homes on the street come up for sale.  Beautiful family home in a great location on a quiet Crescent.  Renovations include new flooring, bathrooms updated, newer fencing and deck and most windows have been replaced.   Living room dining room feature vaulted ceilings.  Family room features a wood fireplace and built in shelving.  Kitchen features eating nook, and a door to your spacious south facing deck.  Main floor features mudroom with laundry.  Upstairs you will find the master with ensuite and walk in closet, 2 additional bedrooms and the main bath.  Downstairs is fully developed (except crawl space) and features a family room, a bedroom and a massive crawl space for your storage needs.   The mature community of Scenic Acres offers great amenities with LRT, Transit, Crowfoot for all your shopping needs, community center, schools and the new French school is scheduled to open for Sept 2017.

MLS # C4093056

Price $485,000

Contact us  for more information or to view this great home.

 

Jan 1, 2017 Calgary Real Estate Market Snapshot

January 3rd, 2017

What is really happening in the Calgary Real Estate market?

Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate.  A simple way to keep up to date with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.

Absorption Rate (Months of Inventory)   (the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.4 to 4.0 Prices typically remain stable
Seller’s Market <2.4 Drives prices up

 

Calgary Real Estate Market Snapshot Showing months of Inventory supply

Calgary Real Estate Market Snapshot Showing months of Inventory supply

The absorption rate for all of Calgary stayed flat this month.   Detached Homes, Semi-Detached stayed almost the same.  Attached-Row went down by .67 while Apartment Condos went up by .26

November  2016 December   2016 Change
Detached 2.99 3.01 0.02
Semi Detached 4.01 3.83 -0.18
Attached – Row 5.42 4.75 -0.67
Apartment 7.33 7.59 0.26
Total City 4.05 4.04 -0.02

 

Calgary Listing Inventory

December saw a decrease in inventory levels in all categories.   This is very normal for the month of December as people were focused on the holidays and many people wait till after Christmas and New Years to list.

Inventory November  2016 December   2016 Change
Detached 2322 1719 -603
Semi Detached 453 368 -85
Attached – Row 770 570 -200
Apartment 1430 1108 -322
Total City 4975 3765 -1210

 

Calgary Sales:

Sales in all categories decreased substantially this month.  This is again very normal as people are focused on the holidays and not real estate during December.    To put things in perspective let’s compare with last year.

2016 Sales from Nov to Dec decreased by 23.91%

2015 Sales from Nov to Dec decreased by 30.4%

This tells me that we had less of a drop in sales in Dec 2016 compared to Dec 2015.

Calgary Sales   November  2016 December   2016 Change % Change
Detached 777 571 -206 -26.51%
Semi Detached 113 96 -17 -15.04%
Attached – Row 142 120 -22 -15.49%
Apartment 195 146 -49 -25.13%
Total City 1227 933 -294 -23.96%

 

Calgary Real Estate Sales Prices: 

As you can see the price changes in December were quite small.  The categories that showed the most decline are the Attached- Row and Apartment Condo Sector.  It’s no surprise that these are also the categories with the highest absorption rates.

  Sales Prices Nov  2016 Benchmark Price  Dec 2016  Benchmark Price Change
Detached 498,300 498,300 0
Semi Detached 384,800 385,400 600
Attached – Row 309,400 307,900 -1,500
Apartment 271,300 269,200 -2,100
Total City 436,200 435,400 -800

  

Sales Prices “Year to Date”   

Year to date prices

Sales Prices Dec 31, 2015   Benchmark Price  Dec 31, 2016  Benchmark Price Change

$

% Change
Detached 514,100 498,300 -15,800 -3.07%
Semi Detached 393,100 385,400 -7,700 -1.96%
Attached – Row 318,500 307,900 -10,600 -3.33%
Apartment 288,000 269,200 -18,800 -6.53%
Total City 452,800 435,400 -17,400 -3.84%

 **Please note that these numbers include on Calgary homes and do change on a community basis and more so for towns.  This report does not include rural properties.  If you would like to find stats on your community just let us know.  If you have any questions about this summary or Real Estate questions please  contact us.

 

 

December 2016 Calgary Real Estate Market Snapshot

December 2nd, 2016

Did the new mortgage rules affect the Calgary Real Estate Market?  The answer is a resounding YES! Here is why.

Dec 2016 Absoption Rate Graph

December  2016 Absoption Rate Graph

Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate.  A simple way to keep up to date with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.

Absorption Rate (Months of Inventory)   (the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.4 to 4.0 Prices typically remain stable
Seller’s Market <2.4 Drives prices up

*** Absorption Rate***  

The absorption rate for all categories increased this month.   When the Mortgage rules changed in Oct we saw these numbers decrease as people jumped into the market before it was too late.  The November decrease in sales results in a higher absorption rate.

 

  October 2016 November  2016 Change
Detached 2.49 2.99 0.50
Semi Detached 2.96 4.01 1.05
Attached – Row 4.21 5.42 1.21
Apartment 6.14 7.33 1.19
Total City 3.30 4.05 0.75

 

Calgary Listing Inventory

November saw a decrease in inventory levels in all categories.   This is very normal for the month of November as people start to focus on Christmas and not Real Estate.

Inventory October 2016 November  2016 Change
Detached 2565 2322 -243
Semi Detached 486 453 -33
Attached – Row 834 770 -64
Apartment 1542 1430 -112
Total City 5427 4975 -452

 

Calgary Sales:

Sales in all categories decreased substantially this month.  To put things in perspective let’s compare with last year.

2017 Sales from Oct to Nov decreased by 25.3%

2016 Sales from Oct to Nov decreased by 11.3%

This shows a 14% drop over our normal drop in November sales.  Knowing that we has a small surge of sales in October tells me going forward the decrease from last year to this simply due to new mortgage rules should end up at about a 10% increase.

 

Calgary Sales   October 2016 November  2016 Change % Change
Detached 1031 777 -254 -24.64%
Semi Detached 164 113 -51 -31.10%
Attached – Row 198 142 -56 -28.28%
Apartment 251 195 -56 -22.31%
Total City 1644 1227 -417 -25.36%

  

Calgary Real Estate Sales Prices: 

All categories showed a decrease in prices this month with the exception of Attached row houses which increased slightly.   Last month we saw a larger decrease in Attached Row houses so I believe it’s just balancing out.  Moving forward how much prices are affected will depend on how much our inventory increases.  Typically we will see a decline in inventory & sales in December and then they will start to increase in January.

 

  Sales Prices October 2016 Benchmark Price   Nov 2016 Benchmark Price Change
Detached 502,200 498,300 -3,900
Semi Detached 386,500 384,800 -1,700
Attached – Row 308,100 309,400 1,300
Apartment 273,800 271,300 -2,500
Total City 438,900 436,200 -2,700

 

 Sales Prices “Year to Date”   

Year to date prices

Sales Prices Dec 31, 2015   Benchmark Price  Nov 2016 Benchmark Price Change

$

% Change
Detached 514100 498,300 -15,800 -3.07%
Semi Detached 393100 384,800 -8,300 -2.11%
Attached – Row 318500 309,400 -9,100 -2.86%
Apartment 288,000 271,300 -16,700 -5.80%
Total City 452800 436,200 -16,600 -3.67%

 

 Price Sensitivity

**Please note that these numbers do change on a community basis and more so for towns.  This report does not include rural properties.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or Real Estate questions please  contact us.

 

 

 

 

 

 

The #1 Investing Mistake – Fighting Your Emotions

November 21st, 2016

Try an experiment. Pick a stock, a business venture, a real estate area, or another kind of investment and ask your friends and family what they think about it. What do you think will happen? We are willing to bet you will get as many different answers (or at least variations of answers), as the number of people that you ask. The question is: Why?

Where Do Our Emotions Come From?

Everyone has past experiences that shape the way they view the world today. Without delving deep into the psychological, everyone carries emotional baggage attached to the events that have occurred at previous times in their life. This is unavoidable; however, the key is to recognize the facts from your own jaded perception.

If someone heard their parents warn them about a potential real estate crash (similar to that in the 1980’s), and never looked deeper into it, then it is likely they will avoid real estate investments. If someone read an article in the paper about a murder in a certain area of town, they may feel the area is dangerous. Had that same person never been subjected to these stories, they would likely never have had any fear attached to real estate, or a particular area of town.

The Origin of Fear

We are actually only born with two natural fears: the fear of falling and the fear of loud noises. But what does this mean for all of the other fears we have? Every other fear in our life has been learned and taught to us. Someone with different experiences will have completely different fears. How do we know if something is dangerous or should be feared?

Think back to some of the fears you may have: spiders, snakes, etc? Or maybe things a little more pertinent: bankruptcy, certain areas of town, technology stocks (especially after 2001), etc? What do we have to believe to feel these fears? Chances are our fears are based on a small piece of information we gained in the past. We have now spent our lives focusing on supporting evidence for this fear and perhaps overlooked real, refuting evidence.

Your Emotions’ Role in Investing

Since emotions and fear are based on “hearsay” and false evidence that seems real, and not on facts and fundamentals… they have no place in investing. It is impossible to make an unbiased investment decision when emotions rule the basis of that decision.

Investing out of emotion and not fundamentals is the #1 investment mistake.

Fear is not the only emotion to be careful of. If you are choosing a place to invest because you grew up there or because it is close to your home, or you think the house is cute, or worse yet, because your parents told you too . . . Be Wary.

Fundamentals vs. Emotions

Investing fundamentals are based on objective, unchanging, non-deviating facts, whereas emotions are based on . . . well . . . very little, if any facts. If your research and due diligence meets the criteria, and is in line with your ultimate goal, then make the investment. However, if you are basing your decision on the past advice of a friend or relative that no longer applies to a marketplace, then run away until you can get the facts straight. You want undeniable, measurable facts.

Real Estate Fundamentals

If a city is growing in income level & population, the development in the area is starting to take off, the price to income ratios are low, vacancy is low, interest rates are low, unemployment is low, and prices have begun to climb after a plateau . . . then invest. If an area is beginning to redevelop (i.e. new buildings) with a few projects and things are starting to clean up, where traditionally this has been a “tough” area of town, then invest and ignore the fear.

There are lots of economic indicators that will make a particular city (or area) a good place to invest in real estate. These indicators are what you need to make your investment decisions based upon. If the type of transaction fits into your portfolio (flip, wrap, lease option, joint venture, cash flow, etc.) and will help you meet your goals, then the decision is unquestionable.

The Boring Side of Investing

After you have done 1 or 2 transactions, real estate investing should become boring. It is a mindless game. Either the fundamentals are there, or they’re not. The numbers work or they don’t. You don’t care what the house looks like, where it is located, or what nationality is prevalent in the area. The only thing you care about is this: Are the facts good and will it help me reach my goal? Investing in real estate is a mindless process that can be repeated over and over.

The fun of real estate investing is rising above your fears & emotions, and enjoying your wealthy retirement as a result.

The 5 Reasons Homes Don’t Sell

November 18th, 2016

Most people believe there are lots of reasons why a home doesn’t sell. However, there are actually only five. If you address these five common mistakes, then you will never have a problem getting your home sold.

Over Pricing and Speculating

We all wish we could ask whatever we wanted for our homes, but unfortunately price is set by comparable properties and market conditions. If you are priced above either of these, then your home will sit for a long time.

Looking at the price of homes currently listed for sale in your neighborhood only tells part of the story. You must research how much homes are actually selling for, and price your home accordingly. Your home will only sell for what buyers are willing to pay for it.

Exposure

Even a well priced property can’t sell, if no one knows about it. If you are not marketing your home where the buyers are looking, then you will not sell it. The greater the percentage of your target market that sees your home, the better chance you have of selling.

More and more, people are using the Internet as their primary source of research. Be sure your home is easy to find in the most common places that people look.

Poor Marketing

You have to make buyers WANT to look at your home. If your marketing makes your property look like every other listing, then you are simply “rolling the dice” and hoping for the best. Is your marketing truly compelling?

A great question to ask is… Why should someone buy my home, versus any other home in the neighborhood or city? If you don’t believe that you have a compelling reason, then the buyer won’t either.

Presentation

So now you’ve got someone to look at your home, but it’s a mess, smells bad, or simply shows poorly. If a buyer doesn’t feel comfortable in your home, you can forget about the sale.

If you can, don’t be around during showings, keep the house clean, and do some research on staging your home for selling. A small investment can make, or save you thousands.

Lack of Buyer Confidence

Purchases fall through every day, because sellers cannot confidently answer the buyer’s questions, provide accurate paperwork, or verify important details. If you are not organized before you sell, then you may watch all of your hard work go to waste, as a potential buyer walks away due to a lack of confidence.

Do Your Homework

You need to be very realistic with your goals when you are selling and you must do your homework. As the marketplace changes, so must your strategy. Too many people spend thousands of dollars, hours of their time (not to mention stress) and miss the best opportunities to sell because they don’t have the proper information to make a sale possible.

“Get the advice of experts when you can.”

Gather all of the information that you need and get the advice of experts when you can. At the end of the day, hiring a professional to ensure your sale is handled properly may be one of the best investments you can make.

For a free home consultation contact us. 

 

10 Ways to Get Your House in Tip Top Shape Prior to Selling It! And Maximize the Most Income!

November 14th, 2016

Many people want to know what the secret is to getting the most out of their real estate and to appeal most consumers looking for real estate today.  This report will guide you through doing many of those things to help get the most dollars when selling your property.

  1.     Paint the interior!  Most buyers appreciate a good fresh coat of paint and this will help enhance your properties value.  It will also help brighten your rooms giving a new clean                       appearance.  Stay away from bold and bright colors and focus more on lighter and softer earth tone shades.  This will also help make the rooms feel larger and appeal to a bigger group of         potential buyers.
  2.     Paint the outside!   Curb appeal is important and there is nothing worse for area estate professional to try and market a home that has peeling paint or is in desperate need of painting.         Of course depending on the time of year and the weather conditions if you can paint but if at all possible paint the exterior.  As noted with the interior suggestion of using soft lighter                 neutral colors do the same for painting the outside of your home.  Stay away from bright colors that others may not like.
  3.     Pick Up Any Outside Debris, Trash or Clutter!  First impressions make a huge impact on potential buyers.  Should your property have unwanted clutter at the initial greeting to               consumers when your property is shown, it will not help in the marketing and selling of your home.  A few hard hours of raking cleaning and picking up odds and ends could add                         “thousands” to the sales price of your home.
  4.     Reduce Extras and Odds and Ends From Your Home!  Rooms with too much furniture or decorations can often detract from the showing of your home.  Usually too much décor           can make the rooms look smaller and hurt your chances of selling your home.  Store unneeded furniture or items that you can do without during the marketing stage of your property               listing.  Your goal is to make your property look spacious and comfortable.  Buyers also want to see rooms that appear and look spacious to them.
  5.     Be sure and Open Blinds and Draperies!  This is a great idea to help aid the salesperson sell your home.  When your property is in tip top share and ready to show having as much            light as possible helps brighten your home and give it a good feel.
  6.     Avoid Playing Music!  Although you may like the music playing in the background it can be a deterrent to the agent and buyers while looking at your home.  Keep music off while your         home is being shown.
  7.     Price Your Property Right from the Beginning!  Many buyers take the approach and attitude that they can always come down on price.  This can be a bad thing to do.  Many buyers       feel if a home has been listed for a long time that there is something wrong with it.  Most agents will tell you that the best activity occurs during the first two to three weeks of the listing             begin date.  After a few weeks the activity will begin to taper off and showings will cease.  If your home is priced incorrectly from the beginning it will not get a lot of showings and the                 longer your home is on the market the more buyers will feel that it’s tainted or something’s wrong.  Price your home right at the beginning to help get the most activity and a quicker sale.
  8.     Have Your Carpets Cleaned!  It’s a good idea to have your carpets cleaned or your hardwood floors polished or waxed.  This is normally not too expensive and can usually add a lot of         appeal to potential buyers.
  9.     Hire a Staging Company!  If possible hire a staging company to help show you ways to maximize room appeal and value to your residence.  Many real estate firms have a staging                   company or people on staff who can aid in this service.  Feel free to ask me about how I can help with staging too.

      10.  Purchase New Linens and Towels for Bathrooms!  This can help aid in giving a new appearance to your bathrooms.

Joint Venture Explanation

November 14th, 2016

Brief Explanation

The Joint Venture is by far the most powerful business concept ever conceived. The ability of two or more people to pool their resources together (money, time, skills, etc) to achieve a greater goal, has been the hallmark of the world’s most successful companies and business ventures.

The joint venture’s application to real estate is absolutely natural, and has allowed hundreds of thousands (if not millions) of people to accelerate and multiply their results.

Two or more people with a common goal (typically financial) get together and offer each other their resources. One partner may offer their time and services, whereas the other may front the money for the transaction. Since the active partner (time and service) may not have the money, and the investing partner (the source of financing) may not have the time or expertise, both parties are required to successfully bring a transaction together.

An agreement between the two partners is formed. The nature of this agreement is truly mutually beneficial to both parties and huge rewards can be realized.

The Benefits

Investing Partners

  •         Higher ROI
  •         Increased Investment Possibilities
  •         Passive Income
  •         No Time Commitment
  •         Opportunity to Diversify Portfolio
  •         Increased Net Worth
  •         Minimized Risk Due to Investment Nature
  •         Proven Systems and Clear Cut Agreements
  •         Opens the Door to Otherwise Unavailable Investments

Active Partners

  •         No Money Required
  •         Infinitely Repeatable
  •         Increased Net Worth
  •         Minimized Risk Due to Investment Nature
  •         Unlimited Purchase Power
  •         Monthly Cash Flow
  •         Leverage Your Time
  •         Proven Systems and Clear Cut Agreements
  •         Opens the Door to Otherwise Unavailable Investments

How It Works

Once the partners agree to work together, it is time to figure out how the details of the arrangement will unfold. It is important to note that there are no concrete laws involved in determining how the terms of this agreement will look, however, we recommend looking at past successful models for guidance. This is what will be discussed here.

A common joint venture agreement is between two parties. One person has some money to invest, however, maybe not the time or desire to properly manage a real estate investment, and usually also lacks the specific skills necessary to acquire, maintain and properly assess such a venture. The second partner may not wish to front any money, however, has the time, wherewithal and commitment to appropriately acquire, maintain and assess the value of a property.

In this arrangement, the investor typically fronts all of the required money and the active partner contributes their time, effort and skills respectively. The investor will cut a cheque, and the active partner will find the property and take care of everything else. Since both parties are equally important, the ownership is divided up 50/50.

Each party will split the income from the property equally after the investor receives their initial investment back. This means that there will be a return of the investment and a return on the investment.

There are three ways you will make money. First, is through the equity that comes from the mortgage being paid down. This has nothing to do with the investor’s down payment, but is the amount that is paid down after possession is taken. Second, is through the cash flow that occurs if the property is rented and the amount of rent collected each month exceeds the monthly expenses (typically paid out quarterly). Finally, the appreciation that is gained as the property increases in value.

A Quick Example:

A property is purchased for $250,000 and the investor fronts $65,000 for the down payment and initial costs. Rents are collected and there is $200.00 per month positive cash flow. Meanwhile, the mortgage is paid down $4000 per year. After 3 years, the property is now valued at $330,000 dollars and you decide to sell.

Here is the simple break down (not including selling costs):

The investor would get back their $65,000 initial investment

Income from Cash flow: $7,200

Amount of Equity Paid Down: $12,000

Income from Appreciation:  $80,000

Total Income: $99,200

50% share to each partner: $49,100

ROI for the investor: 25% annually or 76% overall