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The Lynes’ Roar – September, 2009

Author: admin / Category: Newsletter, The Lynes' Roar
Volume #2 Issue #9 2009

Julia and DanielThe real estate market seems to be making a recovery in Canada, the US and China.  But, just because the market seems to be making a recovery, don’t assume it will.  Always base your investment decisions on sound investing fundamentals.  Buying real estate for the income it produces always works well in any market condition.  When people look at buying real estate as a speculative investment (only making money if the value increases), and treat real estate like gambling is when they can get caught.  The commercial real estate market is still lagging the residential real estate market.  Currently, retail and mixed use buildings are difficult to find 65% LTV (Loan To Value) mortgages for.  You generally end up finding lower LTV’s.  Industrial and office buildings cannot get 65% LTV at all in today’s market.  The banks are quite uneasy about commercial mortgages currently, because of the instability in the market.  When your mortgage comes up for refinancing, you’ll find this out very quickly.  The BAD news: the RECESSION is not Over!  The GOOD news: you can still profit from buying the right cash-flowing property!

This month has been quite dramatic.  An investment firm in New Jersey is being foreclosed on for ten different properties, has entered into Chapter 11 for some of its subsidiaries, has been cited for numerous violations by the city, and the president of the company has been threatened with jail time.  One of these complexes, a 102 unit building for $6.2M worth of first and second mortgages, was only acquired two years ago.  With decisions made by banks to lend on properties like this, one can clearly see what the commercial mortgage market is looking like.  Mortgages were too easy to get a few years ago, and the cap rates were at all time lows…low enough that it was not economically possible to still carry the mortgage, solely using the income produced by the property. 

It’s NO Secret!

We have a few readers asking for advice on how to get started in real estate investing, where to buy, what type of properties to buy.  Our simple but not so simple answer is, "why not start with your education first?"  It’s no secret! (Sorry to say.)  Really.  Real estate is not a get rich quick game plan (it needs lots of hard work).  We used to believe if we spent money to hire a field trainer, he or she would select the best investment property for us.  Wrong!  Nobody cares more about you, but you!  It is critical to have a solid understanding of the marketplace, the cycles, the economic fundamentals, cash flow analysis and implementation of strategies.  Is real estate your true passion?  (We have encountered many fellow investors sidetrack to something else within a year.)  Then how much time are you going to spend to research the right market, find the deals, analyze the deals, do your due diligence, negotiate offers, buy and manage the property?  Benjamin Franklin once said, "investment in education pays the highest interest."  If you are going to buy hundreds of thousands of dollars worth of investment property, it would be wise to seek the proper education that suits your investment needs, be it fix and flip on houses for making chunks of cash or buying apartment buildings for cash flow.  Knowing your niche helps!

A "White List" Message to Our Readers

We have been advised by a couple of readers that they have not been able to receive our newsletters.  They found out the newsletters has gone to their spam filters!  To help ensure your continued receipt of this e-newsletter, please take a moment to white list our e-mail address (newsletter at eaglequestproperties dot com) to your address book, contacts, e-mail filters or safe list.  By adding our e-mail address, you are notifying your Internet Service Provider (ISP) that we are a known contact for mail you wish to receive. In so doing, you should find that the mail does not end up in your SPAM folder.  If you need assistance with this, please contact your ISP.  As always,THANK YOU for allowing us to stay connected with you.

A Swan Sighting

Here comes a beautiful snowy-white swan at Long Point, Ontario.  Julia feels excited to see swans for the first time while she’s learning how to kayak.  These hefty swans can fly when Daniel made a chase after them.  Lots of Ontarians love to own cottages in rural areas near water.  Some friends from church graciously invited us to their boat house.  Daniel has learned a good lesson that he shouldn’t carry his cell phone with him into the kayak.  He tried sitting down into the kayak, but lost his balance and plunged into the water instead!  (More than 500 contacts from his cell phone are now gone.)

A Dream Home Found

Further to Bill Bartmann’s "9 Steps to Achieve Any Goal" from the last issue, we echo Bill’s last step, "You have to envision your results before it happens."  He says to keep a picture of your dream object with you at all times and make it visible all over your house.  Well, no harm, no fault, we then take time to drive around high end neighborhoods and here is our dream home found as our goal motivator.  It oversees Lake Ontario, and a gorgeous view from atop the Niagara Escarpment.  A beautifully designed 3000 sqft home with 4 bedrooms & 2 baths in Hamilton, ON.  It happens to be up for sale for $600,000!  We are surprised to see the price as it would easily cost you more than $2 million in Vancouver.  We invite everyone to find their dream home sooner, not later.

What’s Coming Up?

The "All New" Commercial Property Academy by Scott Scheel in Cleveland, Ohio (US) on Sept. 29 – Oct. 2, 2009.  Scott says, "it takes one good deal to set you free."  A definite thumbs up!  Call 1-800-577-5848.  (Sorry for the short notice, but Cleveland is only 6 hours or less from Toronto, London, Hamilton, Detroit, Buffalo, Rochester, Pittsburgh, Cincinatti, Toledo, and Indianapolis.)

Get A.L.I.F.E. Toronto by Don Campbell & the REIN Team is coming to Toronto, Ontario (Canada) on October 3-4, 2009.  You get access to the brand new Top 10 Ontario Investment Towns Report.  Why not?

Malware and Viruses on Cellphones and PDA’s

As one of our readers found out this month, cellphones and PDA’s are not impervious to getting viruses and/or malware.  There’s not as much available for it, particularly if you’re using a Blackberry, iPhone, or a cellphone running a proprietary operating system.  However, if you’re running Symbian or Windows Mobile edition, you certainly have numerous viruses.  Our reader that got infected uses a Blackberry, so they’re still susceptible as well.

To help those of you that have been lulled into a false sense of security because you don’t think of it as a computer, we’ve found some antivirus and anti-malware software for your mobile devices this month.  For Symbian Series 60 and Windows Mobile Edition, there’s F-Secure.  For Windows Mobile Edition, there’s also Avira (I more highly recommend this one, than F-Secure, for Windows users, because it’s able to identify more Windows viruses than any other product.)  And finally, to round up everything else, there’s S-Mobile’s Anti Theft and Data Protection product.  It is available for Windows Mobile Edition, Symbian Series 60, BlackBerry, and Google Android.  For the iPhone, there’s only one virus scanner available, and you require a Mac to run it.  MacAfee is coming out with a virus scanner for it, but it’s still in beta.

"Your wealth can only increase to the degree of your financial literacy"

- July Ono

Daniel Lynes and Julia Lee

 

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Author: admin / Category: Handy Tips, Newsletter, The Lynes' Roar

Please White-list newsletter@eaglequestproperties.com to Ensure that You Don’t Miss a Single Issue of The Lynes’ Roar.

We find that sometimes our e-mail newsletters are mistakenly blocked by Internet Service Providers (ISPs) as “spam” or unsolicited and unwanted e-mails because they are sent to multiple recipients at the same time. Spam has become such a big problem, that ISPs have put blocking and filtering systems in place to keep these messages out. But sometimes, they inadvertently block messages that you want or have elected to receive from trustworthy senders.

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Notes:

If you want your Contacts to be considered safe senders, select the Also trust e-mail from my Contacts check box on the Safe Senders tab. All e-mail addresses in your Contacts folder will then be used by the Junk E-mail Filter to evaluate messages.

If you want people who are not necessarily in your Contacts but are people you correspond with regularly to be considered safe senders, select the Automatically add people I e-mail to the Safe Senders List check box on the Safe Senders tab. By default, the check box is selected. This check box is introduced with Microsoft Office 2003 Service Pack 1. To get Service Pack 1, go to Downloads on Office Online. Under Office Update, click Check for Updates.

If Automatic Picture Download is turned off, messages from or to e-mail addresses or domain names on the Safe Senders and Safe Recipients Lists will be treated as exceptions and the blocked content will be downloaded.

If you have existing lists of safe names and addresses, you can import the information into Microsoft Office Outlook 2003 by saving the list into a text (.txt) file with one entry per line, and then importing the list.

To quickly add a sender, domain name, or mailing list name to the Safe Senders or Safe Recipients Lists, right-click the message you consider safe, and then on the shortcut menu, point to Junk E-mail, and then click Add Sender to Safe Senders List, Add Sender’s Domain (@example.com) to Safe Senders List, or Add Recipient to Safe Recipients List.

If you are using a Microsoft Exchange Server e-mail account, names and e-mail addresses in the Global Address List are automatically considered safe. (The Global Address List is the address book that contains all user, group, and distribution list e-mail addresses in your organization. The administrator creates and maintains this address book. It may also contain public folder e-mail addresses.)

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Vancouver Bidding War For Homes is Back

Author: admin / Category: BC Real Estate

“Prices have moved up 10 per cent in the last six months, so people are worried that if they wait for the perfect house, it won't be affordable,” says Mr. MacKay, whose client offered $62,000 over the asking price on the Commercial Drive home, but landed near the bottom of the pack because her offer was contingent on getting two weekdays to finalize the financing. “So if someone is offering on a house that's $950,000, but they can afford $1.1-million, they think they'd better pay it now because that house will cost $1.75-million before they know it.”Still, experts say that even though Vancouver posted record sales in August – a whopping 117 per cent over the previous year – the overheated market is not likely to last. The backlog of buyers will purchase homes, and more sellers will enter the market, marking a return to a more balanced situation.

via The bidding war is back – The Globe and Mail.

Google plans new mirror for cheaper solar power

Author: admin / Category: Building Industry

Google is disappointed with the lack of breakthrough investment ideas in the green technology sector but the company is working to develop its own new mirror technology that could reduce the cost of building solar thermal plants by a quarter or more.

“We've been looking at very unusual materials for the mirrors both for the reflective surface as well as the substrate that the mirror is mounted on,” the company's green energy czar Bill Weihl told Reuters Global Climate and Alternative Energy Summit in San Francisco on Wednesday.

via Google plans new mirror for cheaper solar power.

Multi-Family Investment Market in BC Begins to Stabilize as Prices Slowly Return to Normal Levels

Author: admin / Category: BC Real Estate

British Columbia's multi-family investment market is starting to stabilize as investor confidence grows and prices return to levels seen 18 months ago, according to Avison Young's Q2 2009 BC Multi-Family Investment Report, released today.”The market stumbled through the latter part of 2008 and the beginning of 2009 with barely enough sales to indicate new realistic market pricing,” comments Avison Young Principal Rob Greer. “Now, that seems to have completely changed. The market is currently very active with a sense of renewed confidence on the part of investors.”

via AVISON YOUNG CANADA INC. | British Columbia’s multi-family investment market begins to stabilize as prices slowly return to normal levels.

Energy Managers are an Innovative way to Improve Efficiency

Author: admin / Category: Building Industry

As energy costs continue to rise, an increasing number of companies and organizations are turning to energy managers in an effort to maintain costs.

“In the last number of years the private sector, which is more financially driven, and other large institutional and industrial groups and property landlords have hired energy managers,” said Carman Travis, an energy consultant with the Moncton office of consulting firm MCW Maricor.

“Companies recognize that some smart decisions from a good building operator, trained with some of the appropriate understanding to identify energy conservation strategies is good business. Depending on your site – a large industrial site, for example – they could pay for themselves in a day or in a couple of days.”

via nbbusinessjournal.com – Innovative way to improve efficiency: hire an energy manager | Dave MacLean – Breaking News, New Brunswick, Canada.

Upgrading data centres can slash electricity costs

Author: admin / Category: Building Industry

Data centres consume 10 to 30 times more energy per square foot than regular office space, and at the extreme, up to 100 times more electricity. And the power consumed by data centres is rising exponentially.

Not only are companies adding more servers, the servers consume more power. The power consumed by an average server jumped from 150 watts in 1996 to 400W in 2006; total electricity consumed by data centres doubled between 2000 and 2005. By 2011, lifetime energy costs for powering and cooling servers will equal 71% of the server hardware costs.

via Upgrading data centres can slash electricity costs.

Green Living: 42 Storey, Car-free Condo

Author: admin / Category: Building Industry, Ontario Real Estate

A controversial 42-storey condo building that will be built without permanent parking spots cleared a key hurdle yesterday.

The Toronto-East York community council overruled city staff skeptical about the dearth of parking to allow a plan that provides for only nine car-share rental spots, plus 315 spaces for bicycles.

The condominium would go up on the site of the century-old Royal Canadian Military Institute on University Ave. near Dundas St., which would be demolished, with elements of its facade preserved at the base and a thin tower above.

“If you look at the evidence of what sells downtown, the majority of units under 750 square feet in the downtown core sell without parking,'' said Stephen Deveaux, a vice-president with the developer, Tribute Communities. Parking spots typically add $20,000 or more to the cost of a downtown condo.

via TheStar.com | News & Features | ‘Car-free’ condo: 42 storeys, no parking.

“Weatherization” Window Salesmen Overselling Savings And Wrecking Historic Buildings : TreeHugger

Author: admin / Category: Building Industry

The tax credits are big and the salesmen are out, promoting vinyl window replacement as the best way to cut your heating bills. No matter that on a cost-effectiveness basis it is just about the last thing you should do, or that the new windows don't outlive the payback time, or that they never suggest fixing what you have, or that it can significantly reduce the value of the house. It is a real worry for anyone concerned about historic buildings, about reuse and repair instead of replacement, and about vinyl and PVC in our environment.

And the National Trust for Historic Preservation is fighting back. They have produced a terrific weatherization guide for older buildings that tells you what to do and why.

via “Weatherization” Window Salesmen Overselling Savings And Wrecking Historic Buildings : TreeHugger.

African Micro-Grids

Author: Daniel / Category: Building Industry, International Real Estate

Will the continent out of necessity become a distributed Micro-Grid Power? Off-Grid reports:

Lacking the billions of dollars necessary to expand creaky national electricity grids and build large power plants, Africa’s political and economic leaders are experimenting with alternatives. Electricity is increasingly being generated by microdams, solar cells, and microturbines. “Off-grid electricity could be the next great technological leap forward in Africa,” says Mark Hankins, a consultant in Nairobi who specializes in alternative power supplies.

In Kenya, one million households use car batteries as their main source of electricity. From Lagos to Nairobi, even the poorest slum dwellers are driven to purchase fuel that can create power to charge cell-phone batteries and provide light.

via Timbuktu Chronicles: African Micro-Grids.

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