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| Volume #2 Issue #12 | 2009 |
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We are so incredibly grateful that you have been staying connected with us by reading our newsletters. The compliments we received from your e-mails have given us so much encouragement and strength to stay on track. Thank you a million! Discovery Tour of HamiltonHamilton, Ontario (Canada) has long been called “Steeltown” with the associated stigma and perception of it being a hardcore blue-collar city due to the prevalence of the steel plants located on |
Does Any Of This Interest You?Here’s a for sale by owner deal, a residential property we have found: Asking Price: $319,500. - Total Income: $41,800 minus 29% expense = $29,820 NOI - Down Payment 25%: $79,875 - Financing: $239,625 Variable Interest Rate 2.25% 25 Year Amortization - $1,045/month X 12 = $12,540/year - Cash flow: $29,820 – $12,540 = $17,280/year - COCR (Cash on Cash Return): 22% - DCR (Debt Coverage Ratio): 2.38 - Cap Rate: 9.33% In addition to cash flow, we gain multiple profits such as the following:
Based on the numbers shown, if we add up the cash flow, the principal paydown, the projected property appreciation: $17,280 + $7,234 + $9,585 = $34,099. Then $34,099 / $79,875 = 43% ROI (return on investment in Year 1). Does any of this interest you? This deal has been posted to the Lynes’ Inner Circle, but we haven’t received a committed response yet. Anyone interested to know more about this deal, please e-mail our acquisitions department. Anyone interested to receive immediate e-mail notification of our potential deals, please sign up to the Lynes’ Inner Circle by e-mailing us. Any referrals you can give us to help us grow our real estate community is forever appreciated. Variable Rate Mortgages Can Save You Thousands!We started paying attention to variable rates when we first heard Don Campbell talk about it at the A.C.R.E. workshop back in April of this year. Don seems to prefer variable rate as he said 85% of the time you win by using variable rate. His statement is based on the last 80 years track record. To win 100% of the time, we presume you would have to lock in to fixed rate with perfect timing. However, that would imply that you knew when the perfect timing was, and your bank doesn’t impose a penalty for locking in. Mary Flynn also strategically uses variable rate mortgages for generating incredible COCR on her investments. From 1990 to 2004, interest rates decreased to a low of 3.5% from a high of 12%. Since 2004, rates moved higher to 6.25%, only to fall again the following year! The fact is that the prime rate in Canada has maintained a 3% band for the past 9 years. When inflation is low, we can maintain low interest rates; government encourage consumers to spend which, in turn, should stimulate the overall economy. Julia is excited to see that she can save $30,000 interest even though she has to pay a few thousand dollar penalty. Well, do your own homework and seek advise from qualified mortgage specialists. Does a 4.25% five-year fixed rate look tantalizing? How about the prevailing 2.25% variable rate? Now is your opportunity to start contributing to your bottom line and not your bank’s. Links for your research: mortgage rate history; Canadian mortgage trends: fixed or variable? “Our blessing to you all for abundant health and abundant wealth. See you in 2010!” - Daniel & Julia Daniel Lynes and Julia Lee |
Merry Christmas and Happy 2010 New Year, everyone. We sincerely wish you a new year filled with great things to celebrate in the world, in your life and in you. As the snow is falling clear and white, we are sending this issue out a bit early before some of you go on Christmas holidays.
This year has been a bit of roller coaster for us: a brand new environment to live in and to invest, lots of learning curves, and many road blocks to overcome. We are confident to say that we are now more equipped with strategies and an understanding of the marketplace than we had a year ago. We are finally settling down in Southern Ontario after moving from Vancouver a year ago, replacing the rain with the snow! We feel happy to discover a niche market for us to tap into besides commercial properties. We have also discovered the emerging markets for us to focus on. We regret that we haven’t bought a commercial property yet, but we would rather be poor than buy the wrong property. We also missed a couple of deals because our private money base is currently too small to support larger investment properties. Well, we now know that our new priority is to grow our pool of private investors. We love the quote from a highly successful marketer, ‘it is not about how much you are receiving, it is about how strong you are becoming.’ Let’s all look forward to year 2010. We are moving on!
the shores of Lake Ontario. The ongoing development, advancement of transportation systems, growing student population and affordable real estate market in Hamilton make for great investment opportunities yielding strong rental returns. It has been suggested that Hamilton is becoming a bio-tech town. Average Price: $260,000; vacancy rate: 3.2%. We feel fortunate to be able to invite Mary Flynn, a Tags: appreciation, Christmas, hamilton, lake ontario, mary flynn, mortgage, steel city, steeltown, variable rate
