“If opportunity doesn’t knock, build a door.” -Milton Berle

!!!!! SUBSCRIBER SPECIAL LARGE DISCOUNT FOR ‘THE REAL ESTATE ENTREPRENEUR POWER WEEKEND’ May 23/24, 2015 THIS COMING WEEKEND –

PLEASE USE SPECIAL OFFER BELOW
ACT NOW!!!!

OZZIE TALKS
AT THE REAL ESTATE INSTITUTE OF CANADA ON MAY 28 – ‘BOOM OR BUST’!

DETAILS at Jurock.com

THIS WEEK’S FACTS BY EMAIL:

SUBSCRIBERS ONLY! DISCOUNT OF $200 FOR TICKETS TO ENTREPRENEUR WEEKEND

JOSEF SCHACHTER – OIL DOWN AND CANADA DOLLAR DOWN

KOOTENAYS: FRONT LINES OF ALBERTA’S CHANGE

CALGARY FORECLOSURES HITTING MLS

NANAIMO: SMALLER RENTAL SALES

FLIPPING IN THE U.S.: THERE’S AN APP FOR THAT

* SEATTLE AMONG TOP CITIES FOR FLIPPING

PORT MOODY CAPS HOUSE SIZES

SELF STORAGE GOES UPSCALE, EXPANDS CLIENT BASE

NO NEED TO TIGHTEN MORTGAGES FURTHER

Josef Schachter – Oil Analyst – Sees Canadian Dollar At .76cts

We talked about Josef Schachter’s forecasts on oil and the Canadian dollar on the hotline.

1. PLEASE do not leave messages on the hotline. I cannot listen to them. Call our office at 604-683-1111 or email me questions or comments.

2. We had a lot of questions that related to his forecast. Many relating to stocks and currencies in general. As I mentioned before, I only quote these
experts where their opinions (if right) might impact us as real estate investors. My INVESTMENT CLUB/GROUPS/MEMBERS/JVPARTNERS have purchased or invested
in well over 50 million in cash flow real estate in the last 3 years in the US. So we have a keen interest in ‘wither’ the US dollar.

When Josef Schachter says, that oil may head back down to as low as $40 and the Canadian dollar follow back down we are also interested. Why do care what he says? Well, when oil hit $100 he said – sell. Now he feels that the current rise in oil and the US
dollar is time limited. Since the high pumping of oil continues unabated, there will be a glut again and not be much new storage capacity. Ergo, a decline
in prices sometime in May – July.

How low? He worries and predicts that if oil breaks through $55 there will be a rout on the ‘financiers’ street’ as US fracking companies have 4 – 5 times
the debt of cash flow and bond holders will be skinned. In his view strength will flow back to US dollar – unless there is a Black Swan event – like major war.

The Canadian dollar may rise to mid-80 cents first (.84-.86cts) and then settle back in the seventies. (.77/.78 cts)

Alberta members note:

Schachter: Alberta will bring in sales tax 4%.

(Subscribers note my own forecast of January 8 that Ala will bring in a 5% sales tax.)

We agree it is inevitable.

I N T E R N A T I O N A L: Seattle Among Top Cities For Flipping – Or Flippers Rejoice

According to RealtyTrac, the following are the U.S. cities that had the highest average gross profit, based on return on investment (ROI)
as of the first quarter of 2015. The homes must have been bought and sold within a 12-month period.

Among markets with at least 50 completed single-family home flips in the first quarter, those with the highest average gross ROI wereBaltimore (94.1%) Deltona-Daytona Beach-Ormond Beach, Florida (74.7%), Ocala, Florida (73.9%), Lakeland, Florida (62.5%), and Detroit (58.3 %).

Other major markets in the top 20 for highest average gross ROI on homes flipped in the first quarter included Tampa (57.2%),Pittsburgh (55.2%), Memphis (54.8%), Chicago (52.9%), Seattle (49%), New York (47.1%), Washington, D.C. (44.2%), and Boston (44%).

We recommended you buy Seattle in our 2013 and 2014 outlook. Seattle, though, is proving more challenging (for flippers) recently: “With the lowest month’s supply of homes in our city’s recorded history, competition is fierce,” said OB Jacobi, president of Windermere Real Estate, Seattle.

“So not only are there very few homes for flippers to choose from, but they’re also competing with a mass of buyers who are willing to pay well above
market value, and often in cash. These aren’t exactly ideal conditions for investors looking to flip homes and make a profit but those who do will see
a good return.”

However, you – as investors – have done very well on our recommendation. Prices and US dollar are markedly higher since our recommendation.


The average gross profit – the difference between the purchase price and the flipped price – for completed flips in the first quarter was US $72,450,
up from US$65,290 in the previous quarter and up from US$61,684 in the first quarter of 2014 to the highest level going back to the first quarter of 2011, the
earliest where data is available. Florida has most flippers.

Major Point:
The U.S. markets where flips accounted for the highest percentage of all home sales in the first quarter were Memphis (10.6 %), Ocala, Florida (8%), Miami (7.9%), Tampa (7.4%), and Sarasota, Florida (7.2%).

C A N A D A: Kootenays: Front Lines Of Alberta’s Change

Following the sharp drop in oil prices and the equally surprising election of the NDP in Alberta, B.C.’s Kootenays suddenly finds itself on the front line of a dramatically new reality.

On the one hand the Kootenays were just now emerging from a sluggish economy. On the other hand maybe a lot of Albertans may flee the inevitable job
losses, new (potential) sales tax and the weather (6 inches of snow in May in Edmonton.) And of course much more attractive prices.

When the wise Helmut Pastrick, chief economist for B.C.’s Central 1 Credit Union, spoke in the area in late March he
noted that employment in the Kootenay Economic Region fell some 9% between 2013 and 2014 with construction, manufacturing and
accommodation and food – traditionally the strong suits – down further. Pastrick’s bottom line: population growth remains low, housing
sales are slow and prices are flat but “monthly MLS sales are showing gains into 2015.”

Indeed, local builders are actually building again, and in places like Kimberley and Fernie foreclosure inventories are declining and realtors are smiling
for the first time on 3 years. We are told the market is much stronger with home sales ‘back to normal’. Hard to get firm statistics though. The Kootenay real estate board statistics don’t help. Its website states February 2014 and then discusses markets of 2013 versus 2012.

Of interest might be development activity:

At Panorama Ridge, the greatest – and largest – ski and golf community in the East Kootenays, 80% of the 18 buyers of ski-in building lots in the new 21-lot Trapper Ridge subdivision were from Alberta. With the second phase
now underway with larger lots starting at $170,000, Panorama CEO Steve Paccagnan said he is not worried. He believes Alberta’s NDP premier will work with business and that Alberta’s economy will recover from the oil price drop. Panorama, which
will eventually also release lots at its Greywolf Golf Course, appears well financed, content and capable to wait it out.

Other Kootenay developments include the 100-acre The Cedars at Fernie where the opening price typical city size lot is $179,900. Prices
reach as high as $269,900 for an almost half an acre lot. The Montane development, also near Fernie, sold 20 building lots last year with
prices from $135,000. Montane will eventually have 140 homes on a 660-acre site about two miles from Fernie. Farther west in Nelson, the
second phase of Nelson Landing, a waterfront mixed-use project is just getting underway,

Major Point:
The real impetus in the Kootenays, as in all residential markets, is sales of existing homes. There is momentum.

In the first three months of this year. 2,350 homes sold through MLS, more than in the South Okanagan and just less than Chilliwack District.

Also, the inventory of homes for sale is down.

Major Point 2:
We like the Kootenays and have had a place at Kimberley for 10 years. For bargain hunters, this spring will be a good time to be looking
for recreational property or second homes. The price of oil has recovered to around US$60 per barrel. That might change: see above) but the latest black swan that rode in with the election puts the Alberta economic future in further doubt.

Calgary Foreclosures Hitting MLS

How many homes in Calgary are facing foreclosures eight months after the price of oil plummeted? Not a lot, but they are showing up. Some private listings
claiming foreclosure are turning up on Calgary’s Kijiji (we counted 32 this week) and Craigslist, but they may not be true court-ordered sales. (Some
appear tempting such as the McKenzie Towne 2-storey detached house for $319,000.) Many foreclosures are sold quietly, but some are starting to show up on
MLS.

Calgary realtor Stephen McDonald of CIR Realty, (403-680-0799) which handles foreclosures, counted a total of 55 judicial listings of residential property
and 60 ‘bank owned’ listings within a one-hour drive of downtown Calgary this week. The total of 115 distressed sales equate to less than 3.5% of the
current 3,064 listings on the Calgary Real Estate Board, which is in line with CMHC default ratios.

There are six firm foreclosures listed on the Calgary Real Estate Board MLS this week. Here are two:

Asking: $299,900 MLS ID: C3645433; A detached 3 bedroom house in NW Calgary, under a Court of Queen Bench foreclosure. (This may have been a growup).

Asking: $200,000 MLS: C4002695. 3 bedroom, 1,044 square foot townhouse in SE Calgary. In foreclosure, offers to be presented to Court.

Major Point:
Foreclosures in Calgary would have been perhaps unthinkable a year ago. But we fear they will become more common, not only in Calgary but also in
high-priced Fort McMurray, if the oil price fails to recover quickly and the NDP fails to deliver.

Tech Tip: Flipping In The U.S.: There’s An App For That

A new U.S. website has opened that claims it can track every potential buy-fix-and-flip house in the country.

FixFlip.com, a residential fix/flip investment property search engine lists residential rehab properties nationwide. Results are both mapped and displayed in
traditional ways, but it filters the millions of listings to only rehab properties best suited for investors.

“Fix/flip investors can pinpoint their next project with ease and speed never before possible,” said Jens Schoell, Director of Marketing
for FixFlip.com. “Simply put, FixFlip.com finds all of the needles in the haystack and puts them in one place for fix/flip investors.”

Does it work? The company is offering investors a free 7-day trial to check it out, see www.fixflip.com.

Nanaimo: Smaller Rental Sales

Wonder where the smaller rental investors are looking? The answer could be in Nanaimo, where house prices are starting to recover. In
April, the average house price was $387,469, up from $356,000 in April 2014 and sales are up a startling 57%.

It’s not too late to take advantage of certain types of housing in this market. Some neighbourhoods are offering lower prices and condos remain a bargain.
Apartment building prices are low, relative to Victoria. For example, a 73-suite oceanfront apartment building right across from the Nanamio Yacht Club sold this month at less than $108,000 per suite.

Major Point:
Smaller investors take note:

“I have personally written offers on 3 different suited homes in the past 3 weeks, all with 3 bedrooms up and a 2 bedroom suite down. Priced as low as
$274,000.00, with monthly revenue of $2,200,”

said Nanaimo realtor Steve Pakozdy (stevepakozdy@shaw.ca)

Port Moody Trims Large Houses

A series of changes were made last month in Port Moody’s zoning bylaws that deal with very large homes. The so-called monster homes have
been rising along the housing market in the popular Metro Vancouver suburb.

The amendments include a revised height limit on single-family homes that sets a new maximum height of 10.5 metres (34.5 feet) for sloping roofs and nine metres (29.5 feet) for flat roofs. There is also a new definition
for “grade,” which defines it as the average of the existing elevations taken at each corner of the lot established by a survey taken by
provincial land surveyors.

Major Point:
Residents whose properties fall outside of the zoning regulations can request changes by going to the Board of Variance or applying to the
city for a development variance permit. Those two options range in price between $500 and $3,000.

No Need To Tighten Mortgages Further

Further tightening of Canadian mortgage regulations are not needed, if one looks at the stellar performance of public mortgage insurance in Canada. Canada Mortgage and Housing Corp. which ensures most high-risk mortgages, released its annual report recently and it reveals what a low
risk mortgage holders really are. The insurer’s annual report revealed an array of interesting stats (with our additions in italics) among them:

  • Average insured loan outstanding: $139,221 (as at Dec. 31, 2014). Average home prices in Canada is north of $400,000)
  • Estimated policies in force: 3.9 million (i.e., $543 billion of insurance in force)
  • Capital to pay claims: Over $16.1 billion ($10.6 billion in reserves + $5.5 billion in unearned premiums)
  • Capital position: 343% of OSFI’s required minimum, a big jump from even one year ago (CMHC’s capital to pay claims is about 3% of its mortgage exposure, double the buffer that Fannie Mae had during the height of the U.S.
    bubble … and growing.)
  • 2014 Profit: CMHC earned $2.6 billion in 2014 vs. $1.8 billion in 2013, largely due to securities gains.
  • Earnings for taxpayers: CMHC has contributed $21 billion to government revenues over the last 10 years.
  • Exposure: CMHC’s insurance-in-force fell 2.5% from $557 billion in 2013 to $543 billion in 2014 (It will likely drop another $10 billion in 2015, suggests CMHC).
  • Borrower metrics: The average CMHC-insured homeowner had 46% equity, a 25.8% gross debt service (GDS) ratio and a 745 credit score.
  • · Only 3% of CMHC’s book has an outstanding loan amount over $600,000.

Major Point:

The only winner remains the insurance company CMHC and we assume Genworth. Huge increase in premiums … microscopic loan losses, huge profit
increases and tiny delinquencies,
 which remained at about 0.35% in 2014. Enough said. Our Central Bank and Finance Minister know something that we do not … or at least
they are anticipating something terrible to happen.

Self Storage Goes Upscale, Expands Client Base

Storage-Mart’s
mammoth Leaside self-storage facility near downtown Toronto could be a trendsetter.

The condo boom, downsizing, divorce, death and changing tastes have all contributed to a doubling in self-storage across Canada over the last decade – and
a virtual explosion across the United States. Renovations, remodeling and even the constant comings and goings of grown children have all meant that old
furniture, boxes of china and camping equipment have had to find safe homes away from home, under 24-hour accessible lock and key, in Storage-Mart’s
122,000 square foot, state-of-the-art facility at Laird and Eglinton, Toronto.

About 20% its lockers are also places where plumbers and store owners can park their tools and supplies when needed, or until it makes sense to take
long-term leases on bigger industrial space.

Price is dependent on location – the $270 a month for a climate-controlled 10 by 10 foot unit in Leaside drops to $156 a month at Kennedy and Steeles.

Major Point: We have a long recommended self-storage units as a near bullet-proof rentals that, in urban markets at least, can churn from $1.60 to $2.90 per square
foot in gross income with few headaches. The concept of renting the space for tradesmen use and storage adds another layer of tenants and makes good sense.

BEST MORTGAGE RATES:

In the first four months of 2015, we saw the lowest bond yields in Canadian history. That is why in February CMHC insured mortgage debt reached all-time
lows of 1.50% (5-year), 2.20% (10-year), 2.75% (15-year) and 3.0% (20-year). Conventional term debt reached lows of 2.30% (5-year), 2.95% (10-year), 3.05%
(15-year) and 3.15% (20-year). However: Since February, the yields have steadily increased and today’s 5-year debt is approximately 0.70%
higher and long term debt is 0.60% higher than the February low.

That is why … LONG TERM RATES MAY BE ON THEIR WAY UP?

Bonds have been at all-time lows for the past 3 months, but improving equity markets and commodity prices have seen bond yields rise about .4% from their
lows in January and February. Fixed rate mortgages are highly correlated with bond yields, so long term fixed rate increases may be imminent.

“Already a few lenders have increased their rates slightly, especially for “quick close specials”,
says Kyle Green of Mortgage Alliance (778-373-5441, Kyle@GreenMortgageTeam.ca).

“Although you can still find rates at 2.59% or slightly better, it is a little harder to find right now. We are right on the cusp of further rate hikes
if rates increase any further, so make sure you have a pre-approved mortgage and if your renewal is coming up it might be a good time to consider
making a move now.”

Fixed rates have been at historical lows (imagine a 5 year term rate at 2.49%).

So make sure you consider locking in your mortgage if you haven’t already.


Hot Property:

Look at Calgary foreclosures above and check out the ones on Craigslist as well.

1. Red Deer 2 bedroom Condo 13.5% Return on Cash, Price:
$165,900. Tenanted with Positive Cash Flow. End unit in a concrete building next to a park and within walking distance to downtown. Truly turn key with
optional rental management in place.

2. Kimberly, duplex up and down pus loft/ 5 bedrooms, 4 full baths,
2 hot tubs both units fully furnished … great views … 200 yards from the quad chair – 2,400 income: only $399,000

Participate With The Experts! AND GET A SMOKING DEAL TOO!

JUROCK PUBLISHING HAS NEGOTIATED A SHARP DISCOUNT FOR TICKETS FOR OUR SUBSCRIBERS to this 2 -day event …

 

DISREGARD $297, DISREGARD $197 … .ONLY $97 FOR SUBSCRIBERS:

CALL 604-683-1111 –

Our Real Estate Entrepreneur Power Weekend on May 23 and 24 is designed for Real Estate investors who want to take their skills to the next
level.

 

Learn a system to get focused.

Learn a system to recognize and capture great deals!

In addition to myself and Ralph Case, 11 hand selected real estate EXPERTS will teach YOU specific property strategies.

Experts? Yes, among others, one is a Georgie Award winning builder, some are respected authors and others have bought over 2,000 condos in the last 5
years.

You will learn state of the art property investment systems, new ideas to finance property, to renovate property, to buy in the U.S.A., and to structure
Joint Ventures, as well as how to deal with Realtors, mortgage brokers, joint venture partners, Real Estate lawyers, accountants – everything.

There are also 3 panel interviews with successful local investors. Learn from DOERS!

Get the systems in place that you need to find deals, analyze deals, and manage properties effectively and successfully.

Learn and network with other successful Real Estate investors!

“The next Real Estate Entrepreneur Power Summit is May 23 and May 24 at the Empire Landmark Hotel, Vancouver.

The “Entrepreneur Summit” is a full weekend of presentations from successful investors and experts on leading edge Real Estate investment techniques.

No Gurus selling CDs and courses, this event is targeted to Real Estate investors that want to take their knowledge and results to the next level.

Full two day weekend for $297. Early Bird at $197 – SUBSCRIBERS ONLY $97

Book at http://realestateexpertsummit.com/ or call office at 604-683-1111