10% formula from Don`s book and talk...

[chautbui]

Hello,

I bought 2 books from Don Campbell about real esate and listen in some of his talks. Here is my comment:

1) 10% formula from his book is really hard to achieve in Calgary real estate these days. Does anyone have any examples of a recent property in Calgary which can satisfy that 10% formula?

2) Some calculations examples of ROI in his talk using leverage money from the bank DOES NOT take into account of interest payment from the mortgage and TAX from goverment? You cannot really assume that all properties rental can cover all expenses includind mortgage interest. That is the real life scenario to me and it should be mentioned in details.

3) I want to read those real estate books from Don hoping to find out tips and tricks for real estate investments but unfortunately, most of those ideas are very trivial investment basic 101. I hope it would show at least some tips and tricks of various factors in real estate investment. For example, how to finance mutiple properties (ie, using HELOC, RRSP, etc...) .

Any ideas is greatly appreciated.

Thanks in advance

 

[Grant]

Hi,



You have good questions. Many of them have been answered already on these forums. You just have to do a bit of searching around.



Check out this thread for a similar question about Edmonton: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-4377-10_Solution_in_Edmonton.html



This one is about Vancouver: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-3555-10_rule_-_Is_it_viable_in_Vancouver.html



The questions were asked of different cities, but the answers apply to Calgary as well. Essentially, just because you can't get 10% doesn't mean that 8% or another number won't work. It was a quick and dirty way of looking at properties, not the whole picture.



Real Estate Investing in Canada was written a few years ago. The fundamentals still apply, but some of the exact numbers may have changed. For more details, the Quickstart program has much more information. Click here to read about it. It covers everything you need to know on how to purchase cash flow properties.

 

[Thomas Beyer]

QUOTE (chautbui @ May 9 2008, 04:51 PM)
Hello,



I bought 2 books from Don Campbell about real esate and listen in some of his talks. Here is my comment:



1) 10% formula from his book is really hard to achieve in Calgary real estate these days. Does anyone have any examples of a recent property in Calgary which can satisfy that 10% formula?




unlikely .. but I'd love to know too .. try smaller centers or try in SK or N-Alberta .. better than Calgary for cash-flow and equity growth




QUOTE (chautbui @ May 9 2008, 04:51 PM)
2) Some calculations examples of ROI in his talk using leverage money from the bank DOES NOT take into account of interest payment from the mortgage and TAX from government? You cannot really assume that all properties rental can cover all expenses including mortgage interest. That is the real life scenario to me and it should be mentioned in details.




positive cash-flow must be the goal for a long term hold .. say 3+ years .. that is after all expenses: property operating expenses (such as management fees, repairs, utilities, insurance, ..) + taxes + interest on the mortgage + principal paydown




QUOTE (chautbui @ May 9 2008, 04:51 PM)
3) I want to read those real estate books from Don hoping to find out tips and tricks for real estate investments but unfortunately, most of those ideas are very trivial investment basic 101. I hope it would show at least some tips and tricks of various factors in real estate investment. For example, how to finance multiple properties (ie, using HELOC, RRSP, etc...) .



Any ideas is greatly appreciated.



Thanks in advance




some ideas here:



http://myreinspace.com/public_forums1/General_Discussion/61-4391-How_to_get_started_.html