Edmonton Real Estate Investors Association Message Board › ERPIA December 8, 2009 minutes
Les opened the meeting at 7:15 p.m. and welcomed everyone. He introduced the website for ERPIA, Google meetup.com, revenue and click on Edmonton Revenue Property Investors. Register and you will be notified of each month's meeting, held on the second Tuesday of each month. The minutes of each meeting will be posted on the message board.
Les introduced our guest speaker, Jeff Authurs from Dominican Lending Centre. He is a mortgage mentor. He asked investors what their goals are for real estate - long term cash flow, building capital, early retirement. For long term cash flow, the property has to be prime and a rental base agreement has to be in place. "A" lenders (banks) are more inclined to support this. Personal debt to be 40% or less. To cash flow with 70% of rental. Financing with as little as 5% down.
Building capital - Flipping properties. Banks don't like handyman specials or "as is, where is" properties. They would want an appraisal and pictures. Jeff does Lender Planning if you plan to buy alot of properties. Most banks will only finance four residential properties, more than four is classified as commercial. Jeff can help you if you are self-employed. The 5 C's for borrowing are Character, Credit, Capacity, Collateral and Capital. CMHC will let you mortgage 4 properties with a 5% down payment. You need a credit score of at least 600 to borrow funds.
Les talked about the housing market. Edmonton Realtors New Release - November sales surpasses 2008 year end sales, 1421 sales in 2009 compared to 891 in 2008. Next the rental market was discussed. Renters are looking for cheap accomodations. Bachelor apartments go fast. Houses are harder to rent. Landlords are offering rental incentives now. Vacancy rate is 5% now. For credit checks use rentcheckcorp, tell them you are an ERPIA member to get the group rate.
Les discussed the benefits of owning real estate over silver. You can finance and leverage real estate.
Book draws were made and Karen handed out gifts to everyone.
Merry Christmas & Happy New Year!!