Weekly Thought Starter #43: October Meeting Summary

Weekly Thought Starter #43: October Meeting Summary

Real Estate Action Group

Weekly Thought Starter #43:

October 23, 2017

Sunday Night Quote:

“People who think they know everything are a great annoyance to those of us who do.” 

– Isaac Asimov

In today’s issue:

REVIEW OF OCTOBR MEETING

WEEKLY THOUGHT STARTERS

Several great comments on Ralph’s “Questions you must ask when entering in to a JV” and Oleg’s eyebrow raising ‘New Eco System Measures”.

ELEVATOR SPEECHES

We had an number of interesting elevator presentations – from 246,000 condos in Pemberton to JV opportunities in Texas.

MARC’S MINUTE

Marc presented some weird ‘real estate laws’ in the US:Arkansas does not allow numerous women to rent an apartment. In Hawaii it is illegal to mw the lawn on Sundays etc. He also showed his usual ‘weird listings’ and the cheapest waterfront home in Seattle ($475,000) and castles, castles.

SURREY HAS NEW PROTECTION MEASURES

Oleg Verbenkov presented new onerous measures that Surrey introduced. Investor, NOTE: You must check out whether measures apply BEFORE you buy any development property. You may be on the hook for 5 years of maintaining streams.

THE CRAZY WORLDWIDE MARKETS

Ozzie repeated his real estate and oil and dollar forecasts (quoting Josef Schachter and Victor Adair): The Canadian stood at .81 cts. He sees it below .75 cents. Oil is at 51, they see it below $45 sometime between mid-November and Mid December. The real estate numbers are also astounding. Cloverdale condos increased by 47%! Toronto weak and will be weaker.

QUESTIONS YOU NEED TO ASK BEFORE YOU BUY

Ralph summarized a series of most important questions that you must ask in today’s fast moving investment world. Questions were summarized with input from members and are attached.

ARNOLD CAME BACK!

Rictoria showed his new building and reviewed his past buildings. He then introduced a new book “The 4 disciplines of execution” which he highly recommended and Arnold explained.

PRE-SALE EXERCISE

This evening’s exercise focused the conversation on pre-sales ‘must-dos’ and ‘should dos’.

BRENT ROBERTS INTERVIEWED

Ralph interviewed Brent Roberts. Members got to know a bit about Brent’s background, his many achievements and his dedication to the real estate industry and his huge client base.

BIG SURPRISE

Ralph and Ozzie – at the end of the evening – announced that Brent Roberts has joined the management team of REAG. His expertise and caring will help us strengthen REAG and together – Ralph, Brent and Ozzie – will guide our fine action group into an even brighter future.

Live Life Large!

Ozzie and Ralph

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Questions to ask when you go into a deal

From October REAG meeting

Rules:

  1. Don’t assume anything.  Get the discipline to ask these questions and write down the answers.
  2. If it is someone who you haven’t worked with before, get them to sign the sheet to confirm the answers are correct and there will be no misunderstandings in the future.

Questions:

  1. Is the partnership buying property for same price GP paid for it?  _________

(sometimes there is hidden lift)

  1. What is GP charging as “acquisition fee”? _________
  2. What is GP charging as “raising funds fee”? _________
  3. What is GP charging as “mortgage guarantee fee”?  _________   (fee for personal covenant on financing)
  4. What is are fees for “financing set-up”? _________ (Typically a mortgage brokerage fee)
  5. How much debt will be on the property? _________
  6. What are the terms for the debt? _________
  7. Interest rate? _________     Locked in or variable? _________     Prepayment penalties? _______
  8. What is the cash flow to service this debt? _________
  9. What will the GP charge per month for management? _________ (% or flat fee?)
  10. When will the deal get “paid out”? _________ (how many months or years?)
  11. Who gets paid first? _________
  12. Is there a cap on the profit the partners can make? _________ If so, what is it? _________
  13. What happens if it takes longer than expected if there is cash flow? _________ if no cash flow?
  14. What if projected sales prices are less than predicted? _________
  15. What if Interest rates go up 1%? _________      2%? _________
  16. What if selling cap rates go up 1%? ________
  17. If there are setup costs, raising funds fees, who pays if they are delayed or scaled back?
  18. Does the general partner have “skin in the game”?
  19. How will returns be taxed? (income, capital gains etc.…)
  20. Do I have to file a US tax return? (for deals in the USA)
  21. What is the track record of the general partner for these types of deals?
  22. Are there any other assets in the limited partnership other than the deal we are discussing?
  23. Is there any other limited partnership associated with this deal that has different terms?
  24. Are funds secured limited partnership secured? If so, how? Are they unsecured at any stage of the deal?
  25. Is it possible that the funds could be used for something other than this particular deal?
  26. Do you have a couple of current investors that I can talk to?
  27. _________________________________________________________________________
  28. _________________________________________________________________________

Announcements/ Housekeeping

1) PLEASE NOTE: Your next exciting meeting is Monday, November 13th, 2017 at 6:30 PM (sharp!). The meeting will be at: The Vancouver Alpen Club, 4875 Victoria Drive, Vancouver.  If you are bringing a guest, please e-mail max@reag.ca.

2) NEXT ACTION PLAN/GOAL SETTING MEETINGS:

Next Action Plan Meeting is Monday, November 13th at 5:30 (Alpen House before the monthly meeting).Action plan meetings are the foundation of your REAG membership. At these informal meetings, there are no wrong answers. Groups of approximately 10 members share their goals and develop specific 3- day “action plans” to bring them to reality. Earl Nightingale said, “Success is the progressive realization of a worthwhile goal”. At the action plan meetings, we celebrate small successes and acknowledge everyone’s progress. The idea is to keep focused on a monthly basis and get into action. It’s all part of the process of “growing into your future best”. Sign up today!

For Action Plan meetings registration go to: https://www.reag.ca/events/categories/action-plan-meeting/

Action Plan meeting participants are seeing great success!  Try attending the next one!

3) make sure to explore all the new and exciting features at www.reag.ca

Take a look at your own private member section. Create your own team, post your deals with photos, and respond to other deals directly with the posting member. Use it! We developed it with YOU in mind. Feedback is welcome and appreciated.

4) Don’t forget to use the DEALS section

You will find it on our website at https://www.reag.ca/forum/hot-deals/ as a place to post for your deals. If you haven’t used it, TRY IT! It is so simple to submit. You are able to include photos of the property as well as all the details directly to other REAG members.

5) SUBMIT YOUR GOOD DEALS TO OZZIE AND RALPH

Ozzie is always looking for great deals to be featured in his Hot Properties section of the Facts by E-mail, as well as potentially on Michael Campbell’s CKNW Radio Show and its free. You get exposure to thousands of investors! Send your deals to Ozzie no later than Friday at noon for inclusion in the following week.

6) SOCIAL MEDIA

If you are on Facebook, Twitter, or LinkedIn, make sure to check out our REAG page and “like it” for updates on members, activities, and Real Estate updates!

REAG Facebook | REAG Twitter

Ozzie and Ralph are also on Facebook, Twitter, LinkedIn and Instagram! Make sure you send them a friend request!

Ralph Facebook | Ralph LinkedIn | Ralph Instagram
Ozzie Facebook | Ozzie Twitter | Ozzie LinkedIn | Ozzie Instagram

7) Elevator speeches

If you have an accompanying PowerPoint presentation, you must send it to us at least 24 hours before the monthly meetings! Try cutting down to 3 slides! We cannot guarantee PowerPoint presentations will be available if they are sent to us less than 24 hours in advance.

8) Submit your offers!

Don’t forget to submit your offers at each meeting to be entered into our Wine Bottle or REAG Shirt draw! They must be real offers, not chicken scratches on a piece of paper. They do not have to have been accepted offers, the idea is to MAKE OFFERS. Show and tell and win!

Feedback from our attendees.

 
Real Estate Action Group
If you don't know where to begin, then look no further! Ozzie and Ralph bring a wealth of knowledge. Educate yourself in the Real Estate industry and take action! Thank you Ozzie and Ralph for all you have done for me!
09/21/2015
 

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