It’s a SNOW day in Calgary. Whoopee. (Can’t wait to get my toboggan out.)
Looking through Calgary MLS Stats for this morning… it seems as though:
I’ve learned not to predict the market! I’m here to help if you wish to make a real estate decision!
I’m happy to live and invest in Alberta, and the economic fundamentals support long term growth and appreciation of our real estate.
You may or may not know that I have been investing in Single Family Homes as Rental Properties in Calgary at a rate of nearly one per month between 2004 and 2007. The Real Estate Investment Network has been predicting for a number of years that the best time to sell will be 2013-2017. However, my plan included ‘Cashing Out’ by November 2010.
I’m now working on Plan B … as I don’t feel we will be in a Sellers Market in the near future! (Plan B includes ‘selling’ these single family homes as “RENT TO OWN”.)
Currently I am looking to place 2nd mortgages on a number of well selected cash flowing properties. I am offering 8-12% ROI per year.
These 2nd mortgages are RESP eligible through Olympia Trust, Western Bank, and Toronto Dominion. Visit http://activerain.com/blogsview/786434/RRSP-Investing
Are you worried about the future and looking for a safe, solid & secure way to build for your retirement?
Did you know the TSX only returned on average 3% over the last 5 years as of Nov 12th, 2008. It declined by 29% in September and October alone. The low rates offered on savings accounts and GIC’s at 3-5% are actually just about negative appreciation factoring market crashes and inflation. Can you really afford to leave your investments where they are? Isn’t it time to look at alternatives? What’s the cost of waiting to you?
**
On a personal note, I’ve been a very productive realtor this year – doing 5 deals thus far in November – and am on track to reach my goal of 50 deals in 2008. Thank you for your business and referrals.
I had a great year of racing Ironman triathlon having come 3rd at Ironman Canada and in the top 35% at the World Championships in Hawaii on Oct 11. I also raised $5,000 for Habitat for Humanity along the way to the race in Hawaii. To see my race report on Ironman World Championships visit: http://activerain.com/blogsview/767125/Ironman-Hawaii-Race-Report-by-Bryon-Howard
Please let me know if I can assist in your real estate, and investment, needs! Please contact me for more information or to set up a private consultation.
My friend, Mr. Valden Palm of the Real Estate Investment Network is Mr. RRSP. He has raised oodles of cash and has made his investors very good returns of their RRSP's. The below FAQ are from his website
I have been investing my networks RRSP's for a few years at rates from 8-12%. I've been placing these RRSP's as mortgages on single family homes.
I currently have RRSP investment opportunities. Please contact me if you have interest in placing your RRSP's on cash flowing Alberta Real Estate.
As Warren Buffet said, "Act fearful when others are greedy, Act greedy when others are fearful."
There are many great deals on real estate right now!
Q. What Is RRSP Mortgage Investing?
A. Quite simply what R.R.S.P. investing is about, is holding real estate mortgages as investment vehicles under the umbrella of your R.R.S.P. account.
Look at your R.R.S.P. as a separate and distinct individual. Traditionally, the thing that has been done with RRSP plans is that they were placed in some kind of mutual fund or stock fund based instrument that was placed by a financial brokerage firm, in exchange for a return, usually measured in return, and the success of the return was based on the astuteness of a fund handler, who took that pool of money and loaned it out to some venture or project of sort, that you sort of knew where it was (in global funds, in insurance funds, or coffee beans, orange juice …..???). Now I know that there are regulations etc. as to how your money is to be placed etc within that “game”, but as recent history has shown, it seems not to matter as much with respect to the bottom line return into your account. (Mr. or Mrs. RRSP Planholder).
One of the vehicles that is an eligible vehicle for your RRSP moneys to be invested in, is real estate mortgages. (refer to CCRA bulletin on eligible "Qualified Investments" withn your RRSP).
That being said, your RRSP is able to hold mortgages on real property, and get a return paid to it in the form of interest payments. Your RRSP is performing just like a bank does.
..or another way..
You loan money out to a borrower, and they agree to pay you interest on the money, and they pay back the money at an agreed upon time down the road. As security for the loan, a mortgage is registered against the property so your RRSP monies are protected.
Q. Who qualifies as a potential RRSP investor/lender?
A. There are 3 basic categories of people qualified to participate in this way. They are:
• Current RRSP Account Holders
(have their RRSP account somewhere already)
• New RRSP Account Holders
(have cash to put into their RRSP)
• Those with RRSP Contribution Room
(have not made contributions, but have ‘credits’ that are accumulated – see tax return)
Q. What are the "Rules of Engagement"?
A. The potential RRSP investor/lender must also be, what is called, at ‘Arms-length’ from the transaction or the parties involved. (Reference Section 251 and 252 of the Income Tax Act) Namely, the RRSP lender planholder CANNOT be:
• Related by blood, marriage, or adoption to the borrower.
• If the borrower is a company, the planholder CANNOT own a controlling interest in the property.
• If the borrower is a company, the planholder CANNOT be related by blood, marriage, or adoption to any of the individuals who own a controlling interest in the company.
The planholder will also likely be required to sign a statement acknowledging that the palnholder is satisfied that the investment meets the criteria of CCRA and all applicable tax and legislation requirements. I would suggest that in order for someone to be able to sign such a declaration, they will have sought out the opinion of professional advisors in a real estate lawyer, and accountant.
Q. What kind of properties can RRSP's invest in?
A. Mortgages must be placed on “Real Property” that is, residential or commercial property located in Canada registered at a Land Titles Office. Some property types such as mobile homes, boats, leasehold land, co-ops and the like, (typically called Chattel Mortgages) are NOT eligible to be a qualifying investment under the Income Tax Act. ‘Agreements For Sale’ also do not qualify.
And, the mortgagee (lender) and mortgagor (borrower) must be “at arms length” as described above.
Q. What steps are involved in getting it going?
A. After reviewing a potential RRSP investment lender’s current situation, via the interview information gathering process, and after they have reviewed your proposal with their team of advisors and are ready to go, the next 7 simple steps are all that is required. The steps are:
1. Open an Self-Directed RRSP account that MUST be able to deal in “Arms-length mortgages
2. Put contribution in place or transfer funds
3. Prepare instructions to place mortgage Including (independent legal advice letter)
4. Wait for the funds to be forwarded to the lawyer
5. Register the mortgage and close on the property
6. Watch monthly cheques / returns go into your account
7. Repeat the process.
Producing consistent, predictable RRSP returns through this Self Directed RRSP strategy allows investors the opportunity to take advantage of superior tax sheltered R.O.I. results, and cash in on the Alberta real estate boom. They get a great return on a great property and you get the property! Win/Win ..wooohooo!
Q. What are the 'roles' of some of the parties involved?
A. There are several players in a transaction each with various duties and responsibilities to play and are basically as follows (but not limited to):
Real Estate Investor/Entrepreneur (and Team):
This is you. You find the deals and construct the deals to buy with cash, and mortgage funding (first and second mortgages) As the engineer of the deal, you must make sure that the other parties have ALL information on all the deal aspects that would be required for them to make a sound, informed, and intelligent decision. Typically, you are setting up the details of the mortgage with respect to term, interest rate, and payments schedule, for the RRSP planholder investor/lender to consider and then mutually agree to.
RRSP Planholder Investor/lender (and Team):
Typically, this is a person disgruntled with the status quo mutual fund and stock based funds for RRSP investing, and their lack of performance. They want to take control of their RRSP portfolio, and will educate themselves, and take on the action and responsibility as the CEO of their retirement future. They will have a team of professional advisors in their corner for advice and consultation in handling their affairs.
Trustee:
The Trustee is a financial institution that is set up as a stakeholder for the planholders RRSP monies and their account. They accept the payments, monitor the regularity of them and report to the planholder. They DO NOT chase for the payments, nor do they ascertain the borrowers suitability, or the suitability of the investment with respect to equity coverage ratios and the like. That is to be for the professional team to advise on. They also co-ordinate, with the input and instruction of the planholder, the settin up of the account including any movement of funds being held with other institutions or brokerage houses.
Q. Are there fees involved? What can I expect?
A. Yes, like everything, there are fees involved with getting this going. But, unlike most vehicles, the payments can be taken care of in your deal by simply building them in. If there is cash involved for the setting up portion, PAY IT! Don’t pass these fees on to the RRSP planholder investor/lender, as you should look upon them as the cost of doing business. Besides, as a borrower, you should expect to cover the costs to set up the mortgage. Consider this: One of your competition’s biggest argument to dissuade a potential RRSP investor/lender from getting involved will be the fees are too expensive. By agreeing to pay those (carry them as costs to close in your deal now ..don’t forget) you have shot down that argument cold!!
(The costs to setup the RRSP, account, however should be borne by the planholder alone. It will run about $100-$125)
Other trustee costs will be:
Setting up the Mortgage $ 125
Execution of documents $ 50
Mortgage renewal $ 50
NSF Payments $ 30
Mortgage Discharge $ 50
Note that the fee schedule is a bit different with each trustee as they each have their own Fee Schedules and Criterias. Check with each one to understand the differences.
Q. What if I have a question that is not covered here?
A. Simply email your question, and allow 48 hours for the response. More common questions will be added to the FAQ section for the benefit of all.
Q. How do I know what is a good property and what is not a good property to invest my RRSP monies into?
A. Refer to the downloadable "Forms" section of the website and look for the "Astute Investors Checklist"
It will outline how to evaluate the RRSP mortgage, the subject property, and more importantly, the borrower.
Q. What kind of "Real Estate Definitions, Terms, or Phrases" must I know about?
A. Refer to the "forms" section of the website for the "RRSP Real Estate Lexicon" to download for review.
Q. How do I go about finding out where I can locate properties to place my RRSP monies on to?
A. You can either contact, our offic es to discuss opportunities that we might have available, or as a member, you can post it on the "Members Classifieds" section of the website, or both.
Q. Are there any RRSP investor/lending "Rules of Thumb"?
A. Out of all the questions I get asked about, this area is the most talked about and batted about. What interest rate should I offer or expect to pay for an RRSP 2nd mortgage. The answer is not so cut and dried, but in the end, it comes down to what you two are comfortable with, decide upon, and on what the RRSP investor/lenders professional team advise him/her to do. A more aggressive RRSP investor/lender may favour the greater return potential of the equity participation, but THEY have the responsibility to more due diligence to make that call or choose that option. (Don’t forget the “Independent Legal Advice” letters, particularly with these kind of mortgages)
To hone in on the zone, the following items are to be considered:
What is the Loan To Value ratio
What is the track record and strength of the people involved
What is the property and it’s area all about
Find out what the –“in-the-street” market value of mortgages are.
Select a baseline of comparison, like the 5 year posted rate and work from there
(as you know this will fluctuate with economic conditions at the time of comparison)
Consider also, that in an “insured mortgage” situation with higher LTV, there is a stricter lending criteria and it comes with high fees that could be of $3000-$4000 or so depending on the property and it’s cash flow numbers.
Q. Does this just work with RRSP money, or can I use cash for this kind of investing?
A. You can absolutely use cash to invest in mortgages, or you could learn how to invest in real estate yourself (we have some home study materials and live event info in our "RRSP Store" Section of the website), or with a partner using Joint Venturing.
Some of my associates, and me included, are very successful using joint ventures to invest and own real estate with.
Public Consultation to Begin on River Park Plan
The New Year will ring in with the start of public consultations on the Park Management/Design Development Plan for River Park/Sandy Beach/Britannia Slopes.
The plan will focus on ensuring the long-term viability of the park area as a multi-use recreational area, while protecting its natural environment.
Ward 11 Alderman Brian Pincott says the project is necessary, as the park is showing the impact from the city’s population growth.
“This is a treasure of a park, and we are very much loving it to death. Reviewing the management and design of the park is key to ensuring that it is one that we can enjoy for years to come.”
The City has hired O2 Planning + Design Inc., a local landscape architecture, urban design and environmental planning firm, to head up the park review. The company’s clients include national parks agencies, private developers, and all levels of government.
O2 Planning + Design Inc. will soon be asking for ideas and input from the public. Look for a stakeholder workshop and an on-line survey early in the New Year, followed by in-park surveys in the spring and summer of 2009. An open house is planned for the fall of 2009 to review the proposed plans.
Alderman Pincott says it’s important that people get involved in the discussion.
“They need to share with the designers the impacts they see on the park from the growth in usage, how they would like to be able to use the park, what are the important features in the park that they treasure.”
The City will be posting a schedule for these public consultations on its website as the dates are finalized (www.calgary.ca).
More information about O2 Planning + Design Inc. can be found at
http://www.o2design.com/o2.htm
Some South Calgary residents have founded the River Park Preservation Society (RPPS) to promote the park as a multi-use area for the benefit of everyone who uses it.
The society hopes to ensure that River Park is sustainable for future generations, and plans to advocate for proper funding from the City of Calgary to develop and maintain the park.
The RPPS intends to represent its members in any upcoming public consultations with the City, and keep its members informed of any developments.
For more information, contact Nan Douglas at riverparkpreservationsociety@gmail.com
People will be able to track crimes such as assaults, break and enters, theft, vandalism and robberies.
Constable Martin Courte, the Community Liaison Officer with District 2 of the Calgary Police Service, says people in South Calgary who use the webpage will find that the number of crimes per capita in their community has actually decreased in the last few years.
Courte says that’s because while the actual number of criminal incidents in South Calgary has increased, it hasn’t matched population growth.
“Residents of South Calgary can rest assured that overall, whether they are comparing to other communities or within their own community in contrast to a number of years ago, theirs is a very safe community to live in.”
Courte says the webpage is part of the police’s effort to provide more timely updates of crime trends and statistics.
In the meantime, any suspicious activity or incidents can be reported to the police by calling the non-emergency number 403-266-1234.
The Calgary Police Service website is http://www.calgarypolice.ca/
Cross north over the swinging bridge at Sandy Beach, turn left along the footpath beside the river, and you’ll eventually come across the lone spruce tree.
It juts out toward the path in a jaunty greeting. Right now only a few gauzy off-white ribbons decorate its higher branches, but closer to Christmas season this tree is laden with festive ornaments.
It’s a community tradition that’s been going on for years, and it’s one that Jennifer Gouin appreciates on her regular walks along the river.
“It’s a tender spot of Calgary; it shows people still care,” she says. “It’s like a little piece of kindness, and it’s nice that people honour it.”
Look for plenty of signs of caring on the “Community Christmas Tree” in the weeks ahead.
Suggestions for “River Park News” can be e-mailed to:
riverparknewsscanner@gmail.com
Over the last few years I have formed a good team; however, I’m stilling working on creating a Dream Team.
I’ve recently read Blair Singer’s book, “The ABC’s of Building a Business Team That Wins”. He recommends that a team develop a Code … then use this code as way to retain and recruit people to your team.
Code – The Howard Team Real Estate Service
I recently participated in the the Ironman World Championships in Kona, Hawaii. While training for the big day ... I was able to raise nearly $5,000 for Habitat for Humanity.
If you are interested ... you can have a read of the days events!
The short version ... 'very fun'.
(Please take a moment to LEAVE A RESPONSE (make a comment) below... as it will assist me in ranking higher in google. Better yet ... ask a question ... so I can respond!)
Ironman Hawaii – Race Report by Bryon Howard
Race Totals: 10 hours,41 minutes and 39 seconds.
646th place overall out of 1732
98 out of 226 finishers in 40-44 age group
‘Swim 2.4 miles. Ride 112 miles. Run 26.2 miles. Then brag for the rest of your life.’ Thus Ironman Triathlon was born 30 years ago,1977.
Pre-race;
4:00AM:
*7 hrs sleep
*Breakfast: Coffee then Oatmeal, shaved chocolate, blueberries, milk and yogurt.
5:30-7AM (Arrive at Race Site)
*Took Hammer Product – 3 Race Cap supremes and 4 Antifatigue pills. 60mins before 7AM start.
*For any triathlete, that final walk down Alii Drive at 5:45AM is truly unbelievable. My brother and I drove to pretty close to the pier, so the walk takes you through the final run down Alii Drive, right past the finish chute It was exciting knowing I was about to compete in a race I’ve been looking forward to for years.
*After getting through body marking, I made my way out onto the pier for the final check of my gear and any other misc. 'to dos'. The professional start went off 15 minutes before the age groupers at 6:45AM, and I watched the start from the pier.
*I seeded my self a few rows back from the deep water mass start about 10 minutes prior to the start. There were 1700 people bobbing in the waves. I was thinking, I cannot believe I am here, just a dream come true…now the fun begins!
Swim 2.4 miles
*I had a reasonable position about 6 rows from the front. I was hoping to find ‘fast feet’, enjoy the draft and finish the swim in under 1:10.
*When the cannon went off it hurt my ears! I just coasted along on the inside buoys.
*I had heard that swimming in the Hawaii almost friendly … as you were swimming with the best. However … this was a real mosh pit. Unfortunately, I must have been a group that was ‘just like me’. (… swimming anything but a straight line ….)
*It felt like forever until the first boat came and then turn.
*After the turn, I found some good feet and felt I was making up time. I just settled in.
*In the end, the swim felt about 5 minutes too long. I was ready for it to be over! I exited in 1:08:50. The fastest guy of the day swam about 47 minutes.
*Swim Totals (Time/Place) = 1:08:50 1:48/100m (766th place total or 100 in age group)
T1
Fluid transition w/ no issues. A volunteer put sunscreen on my neck and shoulders … but I should have applied more – all over. (I’m currently moulting big time!)
*Total Time = 4:51 min.
Bike 112 Miles
*Once on the bike, the goal was to hold 210 to 220 watts throughout the entire course.
The Hawaii course winds it's way through town for about 10 miles before heading out on the Queen K. The temptation to absolutely hammer this section is high as the crowds are just screaming, but I just held 210 watts. I was being passed like crazy during these first 10 miles.
*After the out and back, heading up the short, but steep Palani Road (aka Pay and Save hill), I finally began to pass a few people.
*The main difference between this race and other Ironman events is the level of athlete is very high. 75% of the field had to qualify to get there and usually had to post a good time to do so. Many women and 50+ year old men were passing me … I was getting used to this.
*About 8 miles or so outside of Kona, near the airport, I began to settle in … and was now passing lots of folks.
*About 10 miles this side of Hawi, and the turn around point, the wind was just relentless, never getting ridiculously high, but NEVER backing off. For the entire ride up to Hawi, there was a strong headwind which I knew based on the looks on everyone's face was beginning to take it's toll.
*Another awesome part of racing Kona is seeing the pro race happening live right in front of you. As I was on the approach to Hawi, I saw the leaders charge by.
* Just after the turn at Hawi, I picked up my special needs bag with a flask of 500 calories of pertreum. This is the first time I’ve ever used the special needs bag in an Ironman. I didn’t like it. In fact, I had to stop to pick it up … and my gears were acting funny. (I was slowing on the up hill … and I went a full one or two cycles before stopping.)
*The last 20 miles I could barely hold 175 watts of power … and was mostly peddling around 155-160 watts. I began to get passed … towards the end of the bike.
*I got off the bike … and don’t remember having any idea of the time I finished in. I was happy to be done biking … and was imaging a quick transition and a good run.
*Bike Totals (Time/Pace/HR) = 5:26:53/20.56mph avg - Bike Split was 557 fastest on the day – or 86 in my age group.
FIRST BIKE SEGMENT 5.5 mi. (1:29:02) 21.50 mph
SECOND BIKE SEGMENT 28 mi. (2:29:57) 22.16 mph
THIRD BIKE SEGMENT 59 mi. (4:03:55) 19.79 mph
FOURTH BIKE SEGMENT 88 mi. (5:29:11) 20.41 mph
FINAL BIKE SEGMENT 112 mi. (6:40:34) 20.17 mph
TOTAL BIKE 112 mi. (5:26:53) 20.56 mph
T2
*Where’s my food? (Flask of Hammer Product - Perpetreum)
*Totals (Time) = 5:33
Run (26.2 Miles):
*Exiting T2 I felt a tad confused on what to do. It was hot. I never had any Food (calories in paste format) in my run bag. This was a mistake!
As you wind your way through Kona, the crowds are just incredible and the support from friends and everyone else was awesome.
*The course heads down Alii Drive for about 5 miles to a U-turn and comes right back into the center of downtown Kona. This stretch is rolling, with little shade and the temperature was already above 90F.
*I was using a new fang dangle Garmin 405 heart rate monitor and GPS. It was not working! I handed it off to a friend who was along the course.
*My nutrition plan was screwed up … and my plan to monitor heart rate was screwed up. I was in a funk.
*During the first three miles I was being passed like crazy! I looked at my watch and was holding 8 minute miles … or 5 minute kilometres. This is a 3:30 marathon pace … and I was being passed by EVERYONE!
*Welcome to the world of competing with the best!
*I never felt 'on'.
*I walked every aid station. I drank coke … until I got the special needs bag at the energy lab with 10 km left in the race … and started using Hammer product again.
*I’m still can’t explain the feeling … I don’t remember my legs being drained … I guess I was just drained from the entire race. The wind on the bike around Havi … and the heat at the start of the run …
*Regardless of how you're feeling at mile 25, I'd guess that for nearly every triathlete, this disappears when you pass that 25 mile marker sign. The nice thing about Kona is after you make the final right hand turn off the Queen K onto Palani, it's all downhill.
It was wonderful cruising through the chute, going from side to side and laying high fives. I was looking for my wife, kids, and brother. Finally … there was Tommy and Robin. I was so happy to see them. Shirley and Jacob expected me an hour earlier … and had gone to the medical tent to look for me. J
*I crossed the line in an official time of 10:41:39, in 646th place.
*Run Totals (Time/Pace) = 3:55:32 (8:59 per mile pace) - 648th fastest on the day – or 98 in my age group.
FIRST RUN SEGMENT 5.2 mi. (7:30:12) 8:28/mile
SECOND RUN SEGMENT 10.3 mi. (8:14:57) 8:46/mile
THIRD RUN SEGMENT 17.6 mi. (9:22:50) 9:17/mile
FINAL RUN SEGMENT 26.2 mi. (10:41:39) 9:09/mile
TOTAL RUN 26.2 mi. (3:55:32) 8:59/mile 648 98
Summary:
Participating at the Ironman World Championships was tougher than I imagined. I’ve learned that Hawaii is an event where the cumulative effect of the heat, wind and barrenness of the landscape just keep widdling you down. Meanwhile, people are constantly passing you.
At Ironman Canada on Aug 24, I had the race of my dreams … finishing in 9:45 … and reaching my goal of qualifying for Ironman Hawaii. I was told by Kona finishers that the first race in Kona should just be a reward to yourself … and not hold any expectation of finishing time. (Many said you should add 30 minutes to 1 hour to your Ironman Canada time.)
My goal was to have the best possible executed race in Hawaii. I thought I could go sub 10 hours … in a perfect day.
I was disappointed that I messed up my nutrition plan on the run. I remember thinking I had an extra flask of gel which I put in the special needs bag for the run. This flask was supposed to go into my T2 bag, and I had no plan to use the special needs bag.
I really hoped to race the entire race. I was happy with my bike time … and thought I would have energy in store for the run. However, I never felt like I was racing the marathon. In fact, I got consistently slower – which indicates I went too hard on the bike (...or was just not sufficiently tough mentally).
Reflecting over my training, I suggest that the heat and wind on the bike, and then the heat during the first 10 miles of the run without my planned nutrition led to the slow marathon time.
In future races:
-I will not use ‘special needs bags’ at the half way point;
-I will not use watches or heart rate monitors during the run.
I got my moneys worth! I loved the day and was happy with the entire experience. I want to do it again, but will wait a few years.
Thank you again family and friends for your support, as what goes into an Ironman starts long before race day. A special thank you goes out to Shirley, Robin and Jacob, as putting up with all that goes into this single day is a challenge. Also, a huge thanks to all the supporters of my fund raising challenge – $5,000 for Habitat for Humanity. I’m almost there!
http://my.e2rm.com/personalPage.aspx?registrationID=493848 (Visit this website to see my progress. Some donations to Habitat for Humanity have not been recorded on line.)
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