Edmonton Real Estate Investors Association Message Board › ERPIA Minutesof may 12, 2009
Sherwood Park, AB
Edmonton Revenue Property Investors Association
May 12, 2009
Karen opened the meeting at 7:00 p.m. and she discussed renting, and evictions. With
evictions, put a notice on the door, and then go to Residential Tenancy Dispute Services.
You can get your tenants out in one week to 10 days. The office for Residential Tenancy
Dispute Services is on Jasper Ave. in the TD Building. You will get a court date. Take 4
copies of everything you will need to file. You will file the documents at Court of Queens
Les uses the 1% rule of thumb. – for example - If you pay $130,000 for a condo, can
you get $1300.00 a month rent? Things are out of whack right now - prices need to fall
more or rents need to rise. New home prices dropped more in Edmonton than anywhere
else in Canada. It is “a buyers market.” Single family home sales are up 33% month
over month. New guests introduced them selves.
Les explained that there is money to be made in purchasing and selling multi family
He recommends a minimum of 6 units and you will be obtaining a commercial mortgage.
Buy ‘middle of the road’ properties in good locations and avoid the Battle Zones.
(South of 118 Ave.) Avoid poor areas – cheap means trouble. Values rise faster in better
areas. Check vacancy rates through CHMC reports.
Les introduced our guest speaker Rohit Dhawan , a mortgage specialist. Rohit also
invests in Revenue properties. He explained that you need a strong team of brokers
and lawyers etc. He suggested that you are best to have 3 or 4 credit cards all in good
standing. A balance on a line of credit should be under 50%. That is good. A balance
on your line of credit over 80% is bad. A 4 plex is considered residential and a 5 unit
building is considered commercial. If you owned 100 condos all with separate titles,
then it would still be residential. The financial institution can do a rental assessment if
necessary. With Beacon scores, you want a high score. Over 680 is best. Servus will
take 80% of your rental Income and include just ½ your condo fees in the calculation.
Les explained that you need a plan. Use a rental calculation sheet to list the rent and all expenses. Buy a property with a positive cash flow.
Les now has 5 or 6 employees working for him. Do not rent to people with pets. Even
a fish tank can cause water or steam damage. You can use a rental agreement from
the internet, but add your own extras and have the tenant list their assets, previous
landlord information, and criminal record. Do they smoke?
Les uses “rent check corporation” to obtain their credit history. The cost is $12.00.
His rents are now all deposited automatically. He recommends you get a letter of
The meeting closed at 10:00 after book draws.