A note from Scott and Michael
Today is always the best day to invest in real estate!
Michael:
This summer is flying by and I can’t believe it is already August! I have been so busy finding and buying cash flowing properties throughout the United States, before I knew it, it was August. In July I took some vacation time with my family camping in Northern Ontario, the adventures started with whitewater rafting, zip lining and ending everyday relaxing around the campfire! After a great vacation, I returned to the office and was blown away by the feedback that had been pouring in from people reading our books. The impact our books are having on people’s lives is outstanding. People are changing their lives and learning how to make real cash flow. Our tips, tricks and techniques over the years have truly got people motivated. We wrote these books by documenting our process and I am so glad people are learning from our own success story. I would like to share with you some of the comments that people are saying about our books:
“I have a financial future because I read your books”- Tory Legman
“I am inspired and I can’t wait to buy my first property, closing in two weeks!”- Bruce Kilroy
“I love your techniques, they really do work!”- Sandy Tuletta
I can’t wait for more excitement in August!
Take care,
Scott:
This summer is by far one of my busiest and most exciting summers! We are in full swing shooting Canada’s Handyman Challenge. Mike Holmes, Bryan Baumler and I are having a blast seeing all the great handymen out there and I am so pumped to see all the contestants prove their skills. I am taking a short break from filming Income Property and flying down to Florida to buy my next property. I’m definitely looking for a beach front property to spend my down time with my wife and our families. In July we learned that my column in Style at Home Magazine is now a monthly feature. This was a huge accomplishment for my team and me. I am looking forward to August because I will be back to Income Property to shoot episodes 61, 62, 63. Don’t forget to follow on us on Facebook & Twitter, www.facebook.com/incomeproperty and @smcgillivray.
Take care,
Please click on an event to register and to see more details. We have three different types of events which we explain in more detail below the calendar.
FREE EVENT
Michael and Scott are extremely excited to introduce you to their team! They have hand selected real estate experts that travel across the country to speak to you about their strategies and get you pumped to create cash flow for life. Even better – it’s FREE! You will get a chance to learn about real estate investing and stay in the loop with all of the opportunities Scott and Michael have to offer for you to become part of their team too!
3 DAY WEEKEND WORKSHOPS
Michael and Scott would love to see you take the next step on your real estate journey! During our weekend workshop you will get the chance to work with our very own team! These highly trained real estate experts are part of our close knit investing team. They aren’t just trainers, they are investors themselves!! Scott and Michael want to make sure you get the most out of your weekend so they cover so much information needed to be a successful real estate investor. The success stories Michael and Scott hear every day from people just like you who attend this seminar is truly inspirational! During the weekend workshop you have the opportunity to understand credit history, fund your real estate business, negotiate deals, analyze properties, learn how to rehab and remodel properties properly and much much more!! Michael and Scott truly believe these weekend workshops are extremely beneficial and provide such an unbelievable amount of information and tools to get you on your way to success!
SPECIAL APPEARANCES
Scott McGillivray and Michael Sarracini appearing live!
Investors Toolkit
Success Landlord Toolbox: Top 5 Reno’s for the Highest Return on Investment
For investors looking to maximize their return on investment, here’s all you need to know: building an income suite is by far the most profitable way to be a homeowner.
“How do I increase the value of my property?” you ask.
That’s the question on every homeowners mind. Market fluctuations can push your property values sky high, or they can diminish them to below what you originally paid.
How do you avoid being subjected to this volatility? There are two key survival strategies. The first is to think long term, have a plan and stick to it. History shows that this plan of action can pay off.
The second tactic is to outperform the market. This means ensuring your property increases in value at a greater rate than those in your surrounding market. One way to do that is through renovations – but not all projects are created equal when it comes to generating a return on your investment. Focusing your renovation budget on key aspects of your home, then, will garner you the best ROI.
Here are the top five reno’s for ROIʼ:
1). Building an income suite
By far, this is the most profitable reno a homeowner can undertake – and this list may the first time that an income suite option makes it to the home reno Top Five. In fact, it’s almost impossible to find any statistics on this subject. However, there’s no denying that housing prices have been increasing significantly faster than income. This means new buyers are finding it more difficult to penetrate the market.
An income suite may provide the solution, since it increases both the value of the home and generates real income, making it easy to measure ROI.
In addition, a home with an income suite is often more attractive to a greater number of buyers. Potential homeowners who would otherwise be unable to afford a mortgage payment may be able to do so with the help of a renter. With the ability to both increase the value of your property and generate cash flow, income suites typically have a 150 percent to 250 percent ROI.
Building an income suite generates positive cash flow every year, making it the renovation that keeps on giving. Your initial investment is often recouped with the increased value of your home. The rent money is icing on the cake.
2). Painting
This is an inexpensive way to freshen up a property. Picking neutral tones and doing a good job is key. This simple reno project is an easy
task to undertake as a Do-It-Yourself project, and it can dramatically improve the look and feel of a space at a low cost. That gives it our number two position with about 100 percent ROI.
3) Renovating kitchens and bathrooms
These areas are subject to intense examination when it comes time to selling a property, so it’s time and money well spent – earning it our number three ranking in terms of best bang for your buck.
Kitchens should be bright and spacious with a smart layout. Replacing old appliances with inexpensive and more efficient newer ones also adds a lot of appeal. Bathrooms are equally important. The more you have, the better the ROI. Bathrooms with neutral tones and bold fixtures score highly. A beautiful faucet can take a bathroom to a higher standard.
Renovating kitchens and bathrooms delivers about a 75 per cent to 100 per cent ROI
4) New Flooring
This has a dramatic impact and hard surfaces are the way to go. Laminate flooring is inexpensive, easy to lay, durable and looks great. With modern styles and improved design, it has become the flooring of choice for real estate investors.
Stepping things up a notch and using real hardwood can deliver an even greater impact. Tiles are best in bathrooms and also can work well in the kitchen. Refinishing existing hardwood with a modern look presents the best possible scenario, cost-wise, for updating floors.
New flooring can generate an average of 70 per cent to 90 per cent ROI.
Real estate investors often look for hardwood hidden under wall-to- wall carpeting when scoping out investment properties. If you suspect hardwood under the carpet, sneak a peek by removing a floor vent and lifting the edge of the carpet and under pad. Refinishing existing hardwood can save you a fortune and it looks incredible. Donʼt be floored to see a 200 per cent ROI in this scenario.
5) Light fixtures and door hardware
These can reveal the true age of a property. Installing proper lighting and a few nifty fixtures in the right places, namely the kitchen and dining room, will brighten up the space and create atmosphere.
Touching door hardware is unavoidable when walking through a property, and since it may be the only thing prospective buyers or renters will touch, it could have a significant impact on their first impression of the home.
Updating the hardware in the kitchen can transform the look of the cabinetry.
With the right touch, updating light fixtures and door hardware can generate a 60 per cent to 75 per cent ROI!
Question of the Month
Question: What are your top three tips for keeping tenants happy?
Answer: This is crucial to keeping your properties rented. Here are our top three tips for keep tenants happy and paying you rent.
- Make periodic visits to the property. It’s good to know the condition of your property, but it’s also a nice touch to make sure things are in working order. The key here is to call ahead and notify your tenant that you’re coming. The lease should discuss how you can do inspections of the home. At any time, you should be able to inspect the home with a 48-hour notice.
- Maintain goodwill. Send a gift during the holidays, but also consider the day-to-day actions you can take to give tenants a great experience living in your property. Changing light bulbs, air filters and fixing problems immediately builds trust with your tenants.
- Email notifications. Throughout the year, we have notifications that go out. Most of it is done via e-mail. It’s very easy to maintain the landlord-tenant relationship this way. It’s good to have automatic communication systems. For example, about nine days before the lease ends, our tenants automatically get a letter notifying them that their lease is going to turn over. They receive an offer to renew for another year if everything has been going well.The key to keeping tenants happy is to communicate and fix problems fast. If you treat your tenants as valued customers, they will stick with and refer other great tenants to you.
Landlord Tip
Follow and watch your home inspector closely when he inspects a property. Ask many questions! You will very quickly learn what is important to consider when buying an investment property… you can then look for the same things when you walk through a property you are considering buying in the future, and better evaluate the quality of the property!
Real Estate Investing Terms
Acquisition Cost – The cost to the purchaser of obtaining title to anything, including real property. Acquisition cost includes the cost of the transaction of obtaining title, including legal fees and expenses, interest charges on mortgages, land transfer tax, etc.
Trust Account – A bank account held by a professional for the purposes of keeping money held on behalf of clients separate from the funds of the professional of her business.
Short Sale – A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money then is actually owed.
Media News
When Should Homeowners Refinance?
-MSNBC
News Nation with Tamron Hall
(Click on the PLAY button to view video)
Investor Trends
U.S. house prices rising
Global News: Wednesday, June 29, 2011
TORONTO – Home prices in several big American cities have risen for the first time in eight months, boosted by an annual flurry of spring buyers. While realtors are hoping this is the beginning of a turnaround for the housing industry, arguably the weakest part of the U.S. economy, analysts say it’s too soon to break out the champagne. The uptick could simply be a seasonal blip and not indicative of a real, long-term economic improvement.
“It’s not up from a seasonally adjusted perspective,” says Som Seif, president and CEO of Claymore Investments. “You have to adjust, when you talk about homes sales, for seasonal situations and so the difficulty here is that home prices are up but relatively speaking.”
A former investment banker with RBC Capital Markets, Seif believes the upward trend in the U.S. will not have much of an impact on the Canadian economy.
“It’s great that we’re seeing this movement but the long term issue with respect to housing in the United States is still a big problem that has to be resolved,” Seif says. “As long as the unemployment rate is high the housing market is going to have challenges.”
Nonetheless, Canadian businesses that would benefit from an improved U.S. housing market—construction, lumber and other industrial businesses—should pay attention to the changing U.S. market.
“Every investor or company that deals in any way, from an economic perspective, with the U.S. should have a view. The economy in the U.S. is not going to have an improvement until you see housing improve in the United States,” Seif says.
