| THE LYNES’ ROAR | |
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| Volume #2 Issue #9 | 2009 |
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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 ReadersWe 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 SightingHere comes a beautiful snowy-white swan at Long Point, Ontario. Julia feels excited to A Dream Home FoundFurther to Bill Bartmann’s "9 Steps to Achieve Any Goal" from the last issue, we echo 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’sAs 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 |
The 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!
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.)
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 





