Mark Vosylius, Barrie, Orillia-'s Blog

Georgian College in Barrie ON Expected to Add 3000 New Students

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Tue, 24 Mar 2009 11:17:56 -0500

City of Barrie to Contribute to Georgian College

The city of Barrie has finally recognized the value of having a first class medical teaching facility associated with RVH. They will contributing approximately 5 million to help build the new facility.

On top that Georgian College is expecting to grow by adding 3000 students by 2011. The question to ask is where are all these students supposed to stay, live and study? There are not many places to build a large sustainable residential housing facility in the area.

I am all for growth but the pressure being put on the local housing stock is starting to take affect. It looks great on politicians to be promoting all the new money being put into this new research/teaching facility, but what about the housing situation? The city has a clear mandate to clamp down on all illegal rental houses in the area, but where are the students supposed to go?

This is great news for investors in the area as pressure will build for the city to address this situation soon. The best thing investors can do in the Barrie area is to legalize all existing housing inventory and wait for values to go up due to increasing rental demand.

To educate yourself on real estate visit www.educatenotspeculate.com

Mana Investments ( www.manainvestments.com) can walk you through all the complexities of investing in real estate for the first time. We have developed tried and true options to help you find, buy, and manage your investments. We focus on Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have good growth potential over the next 10-15 years. We firmly believe and TEACH that real estate is about education....not speculation. For information on upcoming seminars please visit www.educatenotspeculate.com

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning

Step by Step Guide to Using your RRSP's for Real Estate Investing

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Thu, 15 Jan 2009 15:15:55 -0600

RRSP's and Real Estate Investing

Using your RRSP for real estate investing is much easier then you think. At Mana Investments we will walk you through every step of the way, and as with all our investments, your RRSP will be secured by REAL PROPERTY. Simply put, your RRSP will be registered as a mortgage against the investment property. It's like you and your RRSP become a bank, and we "borrow" the money from you. Your money is on title as a mortgage, just like a bank mortgage when you buy your home. We never touch or see the money. It is all handled by you and your trustee. We make monthly mortgage payments to you and your RRSP, just like we would a bank mortgage. And because this is set-up as a RRSP, your profits from this investment are tax deductible, just like any other RRSP. This type of investment is the safest and most secure way to receive a guaranteed return in your RRSP. And unlike other mutual fund RRSP's, there are no hidden costs or fees. All the costs are explained up front ( and we even pay for some of them !).

First off, we will help you set-up a "self-directed RRSP" with a trust company. You can transfer the money from any current RRSP account that you now have, or you can deposit money into your new self-directed RRSP account just like any other RRSP plan that you have. You also can use any funds that are in a locked in plan ( LIF, LIRA) as well.

It's easy to do, here's how...

Step # 1: A Self-directed RRSP account is opened with a Canadian Trust company for you the plan holder. The annual administration fee charged by the Trustee is $125 payable by us. The initial one time set up fee is paid by you ( $125.00).

Step # 2 : Your current RRSPs existing elsewhere is rolled over tax free into the Self-Directed RRSP set up by the trust company ( trustee). Once set-up you can make future RRSP contributions directly into your new self-directed RRSP.

Step # 3: Mana Investments will now look for a property and make an offer. Upon acceptance of the offer, Mana Investments will pay for, and get an independent appraisal of the property by a bank qualified appraiser.

Step # 4: You will then send a letter of direction to your trustee instructing them to release up to 75% ( for a 1st mortgage or up to 15% for a 2nd mortgage) of the appraised value of the property from your self-directed RRSP. The money is transferred in trust to Mana Investments solicitor with instructions for the lawyer to release those funds to the mortgagor for a first mortgage ( or second, depending on the funds available) on the property. A copy of the mortgage deed is remitted to the trustee within 30 days of funding. There is a one time charge of $125 to set up the mortgage and an annual mortgage administration fee of $125 charged by the trustee. We pay the yearly administration fee, you only pay the one time set-up fee of $125.00.

Step # 5: Every 30 days thereafter, monthly mortgage payments ( or biweekly mortgage payments if set up on a bi-weekly basis) are automatically debited from Mana Investments bank account and deposited directly into your self-directed RRSP account by your trustee.

Step # 6 : Thereafter statements are sent out by the trustee to you tracking all deposits, withdrawals and administrative charges on your self-directed RRSP account.

And that is all there is to it. This whole process can take as little as 48 hours to complete, depending on your present financial institution that is holding your current RRSP's.

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

Population Growth a Significant Factor in Real Estate Investing

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 22 Dec 2008 05:57:49 -0600

Population Growth Biggest Since 1990

I couldn't help but notice a small article recently in the National Post. The whole paper was filled with the news of dire economic times. The auto bailout, the financial bailout. But here was an article that simply said that Statistics Canada recorded the largest population increase (in the 3^rd quarter) in Canada since 1990.

Why do I find that interesting? Well simply because in real estate (especially investment real estate) net population growth is an investment fundamental. That is, population growth has a direct correlation with real estate. To simplify it even more, if the population is growing, then the people are going to have to live somewhere. They are going to consume food, go to school, get jobs and pay taxes. But most importantly they are going to need shelter.

Statistics Canada said our net population grew by 129,900. Canada now has 33,441,300 people. But here is the interesting part. Out of that number 71,300 people were immigrants. That means these people are going to need shelter right now. If they don't buy right away, they are going to have to rent.

Upon further analysis, Alberta received 25,640 new people. That is a massive number. That is almost 1% in just 3 months! And the article also commented that the immigration numbers are expected to STAY STRONG because each province has successfully stepped up their policy to attract new people.

So for those in the real estate investment business, hang on....demand for rental housing will increase.

Mana Investments ( www.manainvestments.com) help you understand the complexities of investing in real estate for the first time. We have created a tried and true option to help you find, buy, and manage your investments. We invest in Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have good growth potential over the next 10-15 years. We firmly believe and TEACH that real estate is about education....not speculation. For information on upcoming seminars please visit www.educatenotspeculate.com

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

5 Tips on Buying Real Estate in Barrie, Ontario

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Tue, 09 Dec 2008 15:04:31 -0600

Here are 5 reasons why buying a home in Barrie Ontario makes sense

With all the views on where real estate is heading and the direction seems to be all over the map (it's up.... it's down....its flat...), I thought I would get back to basics and point out five things about buying property (investment or otherwise) in Barrie Ontario and why it makes for such a good investment.

•1- Buy near the Lakefront: You can never go wrong about buying lakefront property. You know the saying "they do not make land anymore" applies on investing in any real estate, but double that for waterfront property in Barrie. All Barrie waterfront (Lake Simcoe) property is a good investment.

•2- Buy near the new GO station; The new GO station in Barrie is transforming local areas. By using this strategy you will be ensuring that the Ripple effect will enhance your property values. The GO train has linked Barrie to Toronto as if Barrie were just another suburb like Brampton, or Newmarket.

•3- Buy near the College and Hospital; Georgian College, Laurentian University and RVH, are a great source of renters. And not necessarily by students. The student rental market pushes the vacancy rate down for regular rental investment property. This area is also well established with schools, parks and is close to the waterfront ( Johnson Beach).

•4- Buy near the New Developments; Park Place, Baypoint Marina; These places will attract not only tourists, but also draw from all over Simcoe County. New and exciting developments increase value through the ripple effect.

•5- Buy Barrie's Downtown Transition Areas; Every town has them and Barrie is no exception. Dunlop Street, Toronto Street, Simcoe Street, Henry etc....all in a state of change. Wherever there is positive change occurring in real estate, values will go up. "Change of use" for investment property is your number one reason for investing in real estate.

These 5 points on investing in Barrie are outlined in greater detail at our other related sites. The Mana Real Estate Group consists of Educate not Speculate, www.educatenotspeculate.com where we teach more techniques and strategies on investing in real estate in general. We can also help your through our investment site www.manainvestments.com where we can show you how to invest through joint ventures and show you practical examples of using your RRSP's for real estate investing. Added to this is our International Real Estate Investment site www.creig.ca , Canada's Real Estate Investment Group, where we attract and work with professional real estate investors from across Canada and around the world. On top of all this lies our "Success Site" www.sixstepstosuccess.com which helps you set goals, realize your business objectives and walks you through a step by step process to achieve success.

For more info call: (705)-812-1033

Email: mark(at) manainvestments com

Attention Canadian Real Estate Agents...Opportunity to Make Money!

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 01 Dec 2008 11:59:49 -0600

Well it's been year in the making but it's finally here. The official www.crieg.ca web site is up and running ( still in test mode till Jan 2009 - with lots of content still to be added)

My company ( www.manainvestments.com) has grown to the point where we need to expand our network. That is why I joined Activerain and began the Canadaina Real Estate Investment Group. I started as a one man private investor, grew into a full time real estate company, now I am officially licensed ( last month !!) and my company requires the need to grow Nationally. That is where your help can come in.

I can't do it all, nor do I want to. My partner is going to Japan and we will begin an advertising campaign there, promoting the new creig site. The creig site requires relevant real estate information ( news and opportunities) from across Canada. I initially was going to hire someone to upload the information, but I thought of trying something new. Why not open it up to any real estate professional and get their input? Why not let them create the local information? In other words, show the site visitors why Lethbridge AB ( for example) is such a great place to invest in. And as well, on top of promoting your region, you can also promote your local listings to the broader national and international market.

The purpose of the site is threefold:

•1- Create a Canada wide network of real estate professionals (agents, investors, other investment groups etc....) that are experienced with real estate investments. Each one contributing to their regional areas; real estate news and investment opportunity listings etc...on the site.

•2- Form a referral network amongst all CREIG members. For example I have an investor interested in Ft McMurray....we work together with this client.

•3- Build an extensive content managed site ( blogs, news and listings) with a direct focus for real estate investors.....with a special emphasis on the international investor.

•4- Drive potential clients to the site through a focused, international marketing campaign.

I got my real estate license recently because I could not find agents that catered to the type of clients that I work with, and with the stock market declining, the new clients are only increasing. And I hate to say it but I am expecting the typical real estate agent response of "what's in it for me first attitude". I sent out an email 2 months ago and only received 2 responses of "sure how can I help?" and I am expecting the same. I have funded all the site developments and advertising so far and will continue to do so because I see great potential. It is up to you to respond.

I can only promise you this...you will get everything you want in life if you just help enough other people get what they want.

For further information visit www.creig.ca , www.manainvestments.com and www.educatenotspeculate.com

Or call: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning

Canadian Taxes and Investment Real Estate

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Sat, 29 Nov 2008 13:22:56 -0600

Taxes and Canadian Real Estate

We are told many times when we discuss real estate at our seminars to "dumb things down". We naturally assume that everyone knows all about how real estate can be used to reduce taxes, capital gains issues, and all that other fun stuff. This article will attempt to explain the basic tax implications one encounters when realizing a profit (or capital gain) from real estate. For those that are not sure what a "capital gain" is....it is simply the profit you made on something you bought (or invested in). For example you buy a house for 100k. In 10 years you sell it for 185k. You made a capital gain (profit) of 85k.

At Educate not Speculate.com we teach both aspects of investing in real estate, personal and investment. So for discussion purposes, we need to separate your personal home from your real estate investment property. We do this because from the tax mans perspective, he views them differently as well.

In Canada your personal home is your residence. It is where you live be it Barrie Ontario or Lethbridge Alberta. It is the address you put on your drivers license. It's where you get your mail and collect all your bills. We stress these points because the Canadian tax man does. You see your personal home can make you a lot of money. A lot of TAX FREE MONEY. In fact Educate not Speculate is in business because so many people have made money on their personal residence, that they have followed our guidelines on utilizing "Lazy assets" in their home for even more profits (see ENSIS -Course 5). From a retirement perspective your personal home is where a lot of tax free "capital gain" exists. Simply put, YOU ARE NOT TAXED ON THE CAPITAL GAIN IN YOUR PERSONAL HOME. In lay mans terms, all the profit you make from your personal residence is TAX FREE.

Your Investment Real Estate is another story. How you set up your real estate business and how you pay tax on it is an important point ( see ENSIS Course 6). For purposes of this article we are discussing the Capital Gains tax ( profit) you pay on your investment real estate. For any property that is NOT your personal residence, you will pay tax on 50% of the profit you make. For example you buy a rental property for 100k. In 5 years you sell it for 125k. You made a 25k capital gain on your investment ( minus your renovations/upgrades ... see ENSIS Course 11 on how to save money doing this). Now the government says we have to pay tax on 50% of the 25k, which is 12.5k. That is, you pay tax on 12.5k. And the amount of tax you pay is based on your personal tax rate. So for this example lets say your personal tax rate is 30%, you're going to pay 30% of 12.5k, which equals $3750.00. Therefore your total profit after tax is 25,000-3750= $21,250

Your accountant is the best person to review all this with as well. But keep in mind this is a simplified version of paying tax on investment property in Canada. There are many other options available to reduce taxes further by following the strategies laid out in the course materials at www.educatenotspeculate.com

As well Mana Investments ( www.manainvestments.com) can walk you through all the complexities of investing in Canadian real estate for the first time. We have developed tried and true options to help you find, buy, and manage your investments. We focus on Central Ontario, Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have good growth potential over the next 10-15 years. We firmly believe and TEACH that real estate is about education....not speculation. For information on upcoming seminars please visit www.educatenotspeculate.com

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

Why Real Estate is a Better Investment then the Stock Market

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Wed, 26 Nov 2008 10:52:58 -0600

I know upon writing this many stock market gurus will bash real estate as they always have. And in light of the current market conditions, I thought it would be a good time to explain why real estate is a better investment then the Stock Market.

Real Estate vs. the Stock Market- A Primer on the Differences

Difference #1 - Capital Gains

For most of us paying tax is simply a part of life. That old saying "there are only 2 sure things in life ...death and taxes" is true. Paying LESS TAX is what all educated investors need to study. Investment real estate offers one of the best tax shelters there is when compared to the stock market.

As noted earlier, we all have to pay tax, but why not pay less. If you properly set up your real estate investment holdings as a business, then you will only pay 50% capital gains tax on your profit. For example if you made $1000.00 in the stock market, you will pay 100% of the tax on that money. So if your tax bracket is lets say 35%, then you have to pay $350.00 in tax. Your net profit now becomes $650.00 AFTER TAX.

In investment real estate, if you earned a $1000.00 profit, you will only be taxed on 50% of the profit which works out to $500.00. The tax you pay ( using the same 35% tax rate) will only be $175.00. Making your net profit $825.00 AFTER TAX.

In time owning investment real estate can lead to a vast amount of money saved in tax And of course, you do not have to realize your profit till you dispose of the property. Which means that if possible, you do not have to sell until your personal tax rate is at its lowest, saving even more money.

Difference #2- Value

The stock market is valued on company balance sheets, assets, P/E ratios and other wonderful terms that could spin your head around. All these terms at one point or another help in understanding how valuable a stock is. (*Quick Note...for those that do not know what a stock is... it's a piece of paper that says you own a "share" or a piece of the company in one form or another. For the purpose of this article we will not get into the types of share ownership here)

However digging deeper into the foundation of basic economics and the meaning of value, a value placed on something is only what someone is willing to pay for it. In other words EVERYTHING is worthless UNTIL someone pays you for it. Let me clarify. You buy an antique dresser because you are an antique dealer and you "know" its value or what someone ELSE is willing to pay you for it. In other words you could say to yourself, "wow this dresser is worth at least $500.00.The guy only wants $250.00 for it...I'm buying it" You say $500.00 because you understand the craftsmanship, the name of the manufacturer and so on. But digging deeper into the true meaning of value, you say $500.00 because YOU BELIEVE THAT SOMEONE ELSE WILL PAY YOU $500.00 for it. I say this because in reality the dresser is nothing more then wood pieced together with nails and glue.

Let me give you a more pertinent answer. You own a small factory that makes widget42. Last week you and your accountant completed your year end financial statements and it showed that you had a net asset of 100k in your company. Your company was worth 100k. Your company owns machinery, inventory, Accounts receivable etc... . However today it was announced that widget42 causes cancer. When you get into the office you discover that all your orders have been cancelled and there is a lawsuit pending. You immediately call up your one of your suppliers and say "hey I'm going bankrupt, the machine you sold me last year I will sell back to you. Last week my accountant said it was worth 25k" (based on fancy depreciation modeling that only accountants and Tax people understand). He says sorry I'll give you .10 cents on the dollar for it. He makes other calls. They all say the same thing. What happened? Just last week you had a company worth 100k now you are lucky if it's worth 10k. What happened to the value?

Well we can certainly analyze the effects of news and market forces which stock market gurus can discuss in endless drivel and commentaries. But let's get to the point. He lost money because the value that his sophisticated accountant gave him just last week was in reality just a piece of paper. The real value in his whole company is what someone is willing to pay you for it. You can throw all the calculated numbers you want at something and base value on all kinds of things, but until you sell it and the money is in your hands, then everything you own is in reality ....worthless. Now I know that sounds all doom and gloom, but we are all in the same boat. All of us own things and all of us have value based on what we can SELL them for (yes it's simplistic but it works!!)

So big deal, I own a piece of real estate that is worthless. And I own a stock certificate that is worthless. What's the point? Value in stock is worthless until you sell it. Therefore the same can be said about real estate. Value in your home is worthless until you can sell it. But there is a difference. A stock certificate is a piece of paper. A value was placed on that paper because of what you paid for it based on market conditions of value. Real estate, well it's physical. Yes value can be placed on it by the same market conditions that value stock, and here is the difference. It's real. You can touch land. You can physically still use it. Even if it is worthless, you can still walk on it. (well I guess you could walk on a piece of paper too, but it's just not the same....). You can grow something on it, even if it's worthless. You can sleep on it even if it's worthless. Get my point? A stock certificate is a piece of paper that is worthless until someone pays you for it. Real Estate is worthless until someone pays you for it, BUT it still has use!! Even if land has no value, it still has use. A stock certificate has NO use if it's worthless.

Difference #3- Leverage & Margin Accounts

Margin Accounts - Going Long

Everyone talks about leverage in real estate. Which in simple terms means that you can take 25k and leverage it into owning a 100k home? That is, you put down 25k and you can own a home worth 100k.

You can sort of do the same in the stock market. Margin accounts are accounts that allow you to "borrow" money against the value of a stock, much like borrowing money to buy a home. Going "long" on a stock means you want to own it and in most cases you can borrow between 50-90% of the value of the stock to purchase it. That is, you can pay for 50 shares and in a margin account you can really "own" 100 shares. Similar to real estate. But there is a difference. If a share you just bought drops in value while in the margin account, you have to "cover" the difference. You have to come up with more money to balance out your margin account. But in real estate, if the value on a home drops after you bought it, the bank does not ask you to cover the losses. You will only absorb the loss if are forced to sell it. So margin accounts do allow for leverage, and if there is a loss, you have to come up with more money. In real estate, if there is a loss you only realize it if you are forced to sell it. If you keep it and keep paying the mortgage payments you can still use it. Real Estate losses are only realized upon the sale of it. Not during its ownership.

But let's use this same example and presuppose the share values go up. In this case you will have "extra" money in your margin account. You will now have excess funds that you can either spend, leave alone or re-invest it. In real estate we have the same opportunities. If the value goes up after you purchase a home, you can re-finance it ( get a new mortgage on a property you already own) and take the money "out" that way to spend, reinvest, or save it, But note there are costs involved to refinancing. Be sure to work out all refinance costs before proceeding.

Margin Accounts -Shorting

Now let's use the same example of a margin account but this time we don't want to really "own" a stock like we do when we go in a "long" position. We want to short sell it. Short selling means that we don't really want to own it because we calculate that the value will drop. After all why would we want to own something if we think the value will drop... right?. So in the stock market we can short sell a stock in "hopes" that it goes down. If it does, we make money. If it doesn't ( i.e. it goes up), we lose all our money PLUS the difference in your margin account. Very much like gambling. In fact this kind of investing I would call speculation or educated gambling, but that is another story.

We can do the same in real estate....sort of. We never really want a property to go down in value but the same speculative techniques where we "hope" the value will change like in the stock market can still apply in real estate. We all know that we can buy a property with no money down (This article is not going to explain how, that's for another time). With a no money down purchase you would buy in hope that the value goes up. If it does then we made money, but if it goes down, then we never really lost money for two reasons. One, we never money down in the first place to buy it and secondly we do not have to come up with the money right away to cover our losses like in a margin account. We only absorb losses in real estate when we have to sell it. And if it is a rental property, it doesn't matter what the value, as long as it produces cash flow, you will only realize a profit (or loss) when you sell it.

Difference #4- Market Fluctuations and Change

In many ways the stock market and real estate are both consider asset classes. That is, they both have value. However real estate is considered to be de-coupled from the stock market. The stock market can affect real estate values and vice versa, but in very different ways.

First off, by the speed of the affect. In the stock market a news item can immediately send the markets up or down. It happens within minutes. In real estate a news items can take weeks, months or sometimes years to have an affect on real estate value.

Secondly the type of changes have different affects. A rail link that comes into a new community will have a ripple affect on real estate values in the surrounding neighborhood. But that same rail link has little or no real affect on the stock market as a whole. Yes the value of the specific Rail Company may go up, but that may depend on other factors as well.

Which brings us to our third point; the stock market affects real estate and real estate affects the stock market....BUT...in very different ways. What that means is that if the stock market as a whole drops in value, our home values may drop...or they may not. It depends on many other outside economic factors (too many to explain here). If however the values of real estate drop as whole, then yes it will affect the stock market in a dramatic way (case in point-sub prime meltdown).

In Summary

I, like you have lost money in the stock market at one time or another. I, like you (maybe) have lost money in real estate. And that is the first point of discussion. I lost money in both. But I have found the real estate market to be a safe haven compared to the stock market. I have identified similarities in both markets and have come up with the following conclusions:

1-Tax - The capital gains paid on investment real estate is 50% vs 100% of a stocks capital gain ( taxed at whatever your personal marginal tax rate is)

2-Value- Stock value is worthless and useless / Real Estate value is worthless but still has use.

3-Leverage -You can leverage both real estate and the stock market, but in stocks you have to cover your losses immediately in your margin account. In real estate you can "hang on" and wait to sell at a later date.

4-Margin - You can short sell in stocks and you can buy no money down in real estate, but again any losses that occur in stocks must be compensated for immediately. In real estate, time is on your side.

5-Speed of change - Change occurs in the stock market quickly. Real estate is a week to months; again time is on your side to make decisions.

We have to put our money somewhere, and real estate is out on top in the long run. The practical use of real estate and the application of time is always on real estates side.

I agree that you can lose money in both. But real estate change, in many aspects is foreseeable. If you are educated on the local and national economy you can, to a degree, estimate real estate values more so then the stock market. Change in the stock market can be immediate and unforeseen.

To educate yourself on real estate visit www.educatenotspeculate.com

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

How to Make Money in Real Estate Investing in a Down Market

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Thu, 13 Nov 2008 09:16:00 -0600

Profit in Real Estate Investing in a Down Market

With the all the bad news in the media ( and yes if you read my blog you know what I think of the media reports on real estate), I thought it would be a good time to discuss the real estate investing technique/strategy that works in up markets as well as a down market. And I must say now, especially in a down market.

There are many strategies to make lots of money in real estate investing. Some are more riskier then others. Anything to do with speculation is NEVER the approach that I adhere to. And yet contrary to the previous comment, I have many a fellow investor who made a killing in Alberta (for example) from 2005-2007. They bought espousing "an educated viewpoint" by telling me that growth was inevitable for Alberta because of all the infrastructure and corporate investment occurring over the next 10 years. And yes I must admit I ventured out there and studied the market. Yes there was growth in employment. Yes salaries were increasing. Yes corporate investment was way up. Even one of my biggest indicators for investing; housing affordability was at an acceptable level of 31%. However there was one problem. And I lost sleep over it many a night. And at the time I felt that I was "missing out on the real estate investing boat", but there was simply an inability for the property to produce solid cash flows. (**not all areas) And that was my point. Investing in a joint venture structure required that I must make a prudent investment choice on behalf of my investors. The one with the least risk attached to it. Investing where appreciation is the sole source of ROI ( Return On Investment) is risky. It was risky then, and it's risky now. That is, money could only be made from refinancing or selling the property outright. You would have to "suffer" with small negative cash flows for 6 to 8 months before you could refinance and show a profit. And that is my point. I asked myself the obvious "What if market values DON'T go up?"... How do you make money then?"

As I I've mentioned before, buying on appreciation is a speculative technique. You are buying on a FUTURE event occurring. There are no guarantees on future events.

Now I am in no way bashing Alberta. Alberta is a good investment in some areas. The same investors who laughed at me for not investing then are still hanging on ( and probably still laughing!!) . They made solid returns quickly. And are possibly hanging on because of increased rental income ( phew!!). At the time I just couldn't invest based on appreciation. I did that in 1989 and lost big time. I swore I would never do that again, so I am sticking to my guns. I learned my lesson then.

The point I am making is that real estate investing with a solid return ( above 10% cash on cash invested) based on cash flows ( not to mention other indicators discussed here) , will produce a strong ROI in a up market as well as a down one. In other words, the market value of the property is NOT the driving indicator for buying it. Yes investing based on cash flow is boring. Yes it's slow. Yes it's a pain, BUT it is the least riskiest. And in this day and age, investments with reduced risk are the way to go. It's always the way to go for me and is the technique that I advise all my clients on.

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

Canada's Economy still resisting slowdown

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Fri, 07 Nov 2008 07:31:45 -0600

Canadian Economy still showing signs of growth

The Canadian Economy has seen surprises in the past few months. And I don't mean the bad kind. Sure the rest of the world is experiencing contraction and even recessionary indicators, but Canada has surprisingly shown resilience to the downward trend. Canada is still foundational in supplying raw materials ( oil, wood, metals, potash, water...) and demand for the basics is still there. Let me cite 2 examples

Russia recently has increased its export tax on wood. It is now almost up 80% over last year. China has been a big importer of Russian wood in the past years. But with this new tax, China has begun to look elsewhere. And it's looking at Canada. Our beleaguered wood industry has not seen growth in sales orders in the past 5 years, so this is a pleasant change for the good.

Secondly, water. Canada has plenty of it ( Ontario has so many lakes that some even have no name!!) and its becoming a serious export commodity. As well Canada is a leader in the technology of water preservation and technology that delivers clean water. "Its one of the fastest growing industries and Canada is leading the way. " states Duncan Stewart , director of research at Deloitte Canada's Technology and Greentech division.

So yes the media is blasting out all kinds of bad news recently, but hidden in the noise is positive data that is getting drowned out by all the negative press. Once again as real estate investors we need to study the fundamentals of the economy to see what is really happening.

Mana Investments ( www.manainvestments.com) can walk you through all the complexities of investing in real estate for the first time. We have developed tried and true options to help you find, buy, and manage your investments. We focus on Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have massive growth potential over the next 10-15 years. We firmly believe and TEACH ( through our local group www.educatenotspeculate.com) that real estate is about education....not speculation. For information on upcoming seminars please contact

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

Real Estate Investing is Always about Local Statistics...not National

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Sun, 02 Nov 2008 19:39:49 -0600

CREA makes it clear recent numbers are skewed

The Canadian Real Estate Associations recent report on home prices admits that they may be misleading. As discussed before many times right here, National statistics mean very little to those who want to invest. They make great headlines but have little to do with decision making for real estate investing. Especially in towns like Barrie, Collingwood and Orillia. CREA is a national real estate body that produces statistics that always gets the headlines.

I like to think of the Canadian housing statistics as a giant bed sheet spread tight. If you but a ball in the middle, it will bring down the whole sheet, but where the ball sits, will be the lowest. CREA admits that Vancouver which has seen sales declines of about 40% year over year may be "skewing the national average". Vancouver is the ball right now.

What does that mean for us who want to buy an investment property in Orillia or Barrie? Very little. It can certainly scare you a bit, but in reality home prices in Vancouver have little to do with home prices in Innsifil. The focus should ALWAYS be on the micro-economics of the region, not national statistics.

A small town that gets 300 new employees means a lot more then a 40% decline in home prices in Vancouver.

Mana Investments ( www.manainvestments.com) can walk you through all the complexities of investing in real estate for the first time. We have developed tried and true options to help you find, buy, and manage your investments. We focus on Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have massive growth potential over the next 10-15 years. We firmly believe and TEACH that real estate is about education....not speculation. For information on upcoming seminars please visit www.educatenotspeculate.com

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

Real Estate Basic Buying Guidelines

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Thu, 30 Oct 2008 17:22:59 -0500

Todays Chicago Defender had an excellent article on the basics of investing in real estate

Its is cautionary in tone but lays out simple and basic rules for investing in todays market. I think given the nature of the markets right now, we can say that cautionary is a good start, especially for someone just starting out.

If you are thinking about buying Barrie or Orillia investment real estate, then this article is a great start.

Here is the link to the full story http://www.chicagodefender.com/article-2321-todayrss-real-estate.html

For more info: (705)-812-1033

Email: mark(at) manainvestments com

Homes by The Owner - www.homesbytheowner.ca Helping Buyers and Sellers in the FSBO real estate market in Simcoe County and surrounding Oro-medonte areas

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

5 Questions to Ask Before Investing in Real Estate

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Thu, 23 Oct 2008 08:29:55 -0500

These Questions will help clarify your first steps to investing.

What a time to be in real estate! Some areas up, some areas down. What is an investor supposed to do?. Yes I know many agents will say its tough out there but I am a "cup half full kinda guy" and I see nothing but opportunity out there. Here are 5 things you should ask yourself (and your agent) before buying an investment property in this market.

•1- Where are we in the Real Estate Cycle? It is good to talk to an expert to find out what the market is doing. Every local market is in a cycle or trend. Find out where that cycle is and base your investment on that i.e. what the market is doing (upswing, flat or downswing).

•2- Negotiate, Negotiate! In any real estate transaction be prepared to negotiate. If your buying in Barrie or Orillia areas, look at all factors that will affect the "future" value of your investment. Always have a "plan B" ( a back up) when you negotiate

•3- Educate....NOT Speculate. Do the research necessary on all aspects of your investment. Look at transportation developments, shopping mall growth, employment and vacancy statistics ( among others)And visit www.educatenotspeculate.com on how to get informed on all things real estate

•4- Take a Breather. In real estate it is best to always have a cool off period to think things through. In home buying as in real estate investing it is good to take time to ensure that this is what you want. Buying can be a very emotional time

•5- Set Goals...Write a Business Plan. Investing in real estate is just like any other start up business. Write a plan that is realistic and takes you from where you are today to where you want to be 5 years from now. The best advice here is talk to someone who has done it. Get there story and see if your plan is realistic.

•6- Check your FICO Score. That is...check your credit rating. Investing in real estate will require that you have a healthy FICO score ( the rating that banks use to see how credit worthy you are).

Mana Investments can walk you through all the complexities of investing in real estate for the first time. We have developed tried and true options to help you find, buy, and manage your investment. We focus on Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have massive growth potential over the next 10-15 years.

For more info: (705)-812-1033

Email: mark(at) manainvestments com

Mana Investments - www.manainvestments.com - We believe in Education not Speculation. We invest in real estate in the Barrie, Orillia, Angus, Innisfil, Collingwood, and Midland areas. We can show you how to use your RRSP's as a 2^nd mortgage for real estate investing in Ontario

Educate not Speculate- www.educatenotspeculate.com Helping Buyers / Sellers and Investors educate themselves on all things real estatein Simcoe County, Barrie, Orillia and surrounding Oro-medonte areas

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

When the Real Estate Downturn Will End...Start to Buy Again!

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 13 Oct 2008 15:00:28 -0500

How To Know When you are at the Bottom of a Real Estate Cycle...When to Start to Buy Again!!

Whether its stocks or real estate, we all heard that the time to buy is at the bottom of the market. In real estate that would be the bottom of any current "real estate cycle". And let me say that differing cycles exist in various parts of the country. Each local area is in a different stage in their own cycle. However the million dollar question for any real estate cycle still is... when is the "bottom" going to occur? How do we know when we are at the bottom so we can begin buying again? As real estate practitioners we are all faced with this question. Especially now where we are all witnessing unprecedented turmoil in the financial markets and we are seeing home values drop rapidly in many markets. This little essay will help answer this question for all your clients ...."when will the bottom occur and when will things get back to normal?....".

There are 2 aspects of this analysis/answer that I want to discuss. One is the concept of rapidly rising real estate values , and the other is its relation to the local housing affordability index. These two concepts intertwine together for a more definitive answer on real estate buy and sell triggers.

First lets discuss areas of rapidly rising house values. For the uninitiated, rapidly rising house prices are also called ‘real estate bubbles'. Where market values rise greater then 12% a year. Real estate bubbles are areas of high volatility. They are somewhat unstable. They can change rapidly. In other words...BE CAREFUL. But here is the point I want to drive home about bubbles; Real estate bubbles will have a greater propensity to fall as rapidly as the grew. That is, the quicker the rise in home value, the quicker the fall in home values. They are co-related. In the U.S. we can look at Southern CA and in Canada we can look at Alberta as an example- more specifically Calgary. Starting 2004 up to 2007 we saw a rapid rise in house values (15-30% a year). However starting in late 2007 to now ( late 2008), we have seen Calgary home values decrease just as rapidly as they grew ( about 30% ) Compare that with Barrie Ontario where house values have only increased marginally at 6-9% a year in that same time period. Barrie has also seen only a small decrease ( if any at all) of about 3-5% . Again please note that Calgary and Barrie are both in different "local" cycles. The point is this, whatever your local cycle, it is the speed of increase that will conversely affect the speed of decrease.

Now lets discuss part two of our answer; housing affordability index. This index is the "trigger" signal for our understanding of when to begin buying homes again and conversely when to begin selling in our local real estate cycles. It is the key to understanding the Buy signal and the Sell signal in real estate. Housing affordability is the percentage of income the average person makes that is used to afford a home. It is the amount of money required to spend on housing. It's what they can afford to pay for a house. When income is low and houses are expensive ( relatively)we will see the index around 45-50%. This is at the top of the cycle. It simply becomes too difficult for the average person to afford a home once the index reaches above 50%. Therefore people will no longer be able to buy homes because their average incomes are too low to sustain those home market values. That's when we see the "bubble burst". And home prices will fall because there are not enough buyers to pay for those high priced homes.

Conversely when incomes are relatively high and homes are relatively low we will see the index around 25-27%. This would be considered the bottom of the cycle. They can "afford" to buy homes, their income is high relative to the local home prices. That means people can afford homes and therefore houses will increase in response to higher demand.

So now lets wrap this up and combine the two for our million dollar answer; housing affordability with rapidly rising values. In areas that saw a rapid rise in home values ( a real estate bubble) that are now experiencing a rapid decrease in home values, the bottom will occur when the housing affordiablity index reaches below 27%. You can view that as your BUY trigger. This will happen by only one of two things. Either home values drop (relative to income) or incomes increase (relative to home values). And the opposite is true. The SELL trigger in a rapidly rising market is when the housing affordability index reaches approximately 40-45%.

In markets that are relatively stable and the housing affordability index is in between 27-42% , then there are no real BUY or SELL signals. It is a relatively good time to buy and good time to sell. The buy and sell triggers discussed that come from the housing affordability index only apply most dramtically when we see rapidly rising or falling house values (real estate bubbles).

( please note...there are many avenues to discuss ....this analysis can also lead to other fundamentals of market analysis such average incomes, average age, school enrollment etc... for a clear picture on real estate cycles...)

I have had many conversations on when this turmoil in the market will end. The above analysis is only in a perfect world. There are many economic factors to consider when analyzing market conditions. With the current credit markets experiencing a major overhaul and consumer confidence ( fear) crashing, there is no "one" answer. Time has proven that basic economics and common sense will prevail in the long run. By applying this method to your LOCAL real estate market you will be able to advise your clients on market triggers, and help them through some tough decisions when it comes to the "right time to buy or sell".

For more info: (705)-812-1033

Email: mark(at) manainvestments com

Mana Investments - www.manainvestments.com - We invest in real estate investing as well as buy houses in the Barrie, Orillia, Innisfil, Collingwood, Midland areas. We can show you how to use your RRSP's as a 2^nd mortgage for real estate investing in Ontario

Homes by The Owner - www.homesbytheowner.ca Helping Buyers and Sellers in the FSBO real estate market in Simcoe County and surrounding Oro-medonte areas

The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.

Real Estate Investing in Barrie is about Writing a Plan- TV Interview Pt-7

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 06 Oct 2008 05:53:50 -0500

Real Estate Investment guru Mark Vosylius discusses the importance of wrting a business plan before investing.....education not speculation....real estate is about local news, not national...its about what is happening in Barrie, Midhurst, Angus and Innisfil. Learn all you can about the local economy before you decide to invest in real estate. Real estate is not a get rich quick concept... .........For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – Investing in real estate as well as home ownership in the Barrie Orillia, Collingwood, Innisfil, Midland areas. Use your RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Private Buyers and Sellers in the FSBO real estate market in Barrie, Orillia and all of Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Real Estate Joint Ventures and OPM -TV Interview- Pt-6

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 06 Oct 2008 05:48:15 -0500

The most important thing to realize when thinking big about real estate ( especially in the Barrie, Collingwood areas) is that you will eventually run out of money for the downpayments...Mark from Mana Investments says think now about OPM or "other peoples money"...think now about building a team of people so ALL involved will benefit from investing in real estate....write a business plan and set goals...the Six Steps To Success web site has all the tools needed to help you put together a well thought out goals program.... .........For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – Investing in real estate as well as home ownership in the Gravenhurst, Innisfil, Barrie Orillia, Collingwood, Midland areas. We can show you how to use your RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Private Buyers and Sellers in the FSBO real estate market in Barrie, Orillia and all of Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Barrie & Orillia Real Estate Infrastructure and Real Estate Ripple Effect-TV Interview Pt-5

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 06 Oct 2008 05:39:33 -0500

Real Estate investing is about Education not Speculation, says Mana Investments CEO Mark Vosylius on the real estate TV show "In Tune with Real Estate" hosted by Rav Toor.....Roads and other infrastructure developments are a key component to any real estate investment.....Investing in Orillia, Collingwood or Midland requires a business plan...treat your real estate investments just like a business and all businesses have a plan and Goals to meet.... ..........For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – Investing in real estate as well as home ownership in the Innisfil, Barrie Orillia, Collingwood, Midland areas. We can show you how to use your RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Private Buyers and Sellers in the FSBO real estate market in Barrie, Orillia and all of Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Student Rentals and Buying Land as Real Estate Investments-TV Interview Pt-4

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 06 Oct 2008 05:32:07 -0500

Student housing in Barrie is growing due to the demands of Georgian College. Mark discusses the pitfalls and cautions investors before plunging in....caller asks about investing in raw land in the Peterborugh area...zoning issues with such an investment and cash flow are discussed... ... ......For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – We buy investment real estate as well as homes in the Innisfil, Barrie Orillia, Collingwood, Midland areas. We can show you how to use your RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Private Buyers and Sellers in the FSBO real estate market in Barrie, Orillia and all of Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Discover What Real Estate Cash Flow & Leverage Mean- TV Interview Pt-3

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Mon, 06 Oct 2008 05:18:07 -0500

"In Tune with Real Estate" TV Interview with Mark Vosylius of Mana Investments explains cash flow and Leverage in a real estate investment. Why they are so important...why appreciation is a form of speculation....caller asks about investing in Condo's in the barrie area ( Molson Park)......... ......For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – Investing in real estate as well as home ownership in the Innisfil, Barrie Orillia, Collingwood, Midland areas. We can show you how to use your RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Private Buyers and Sellers in the FSBO real estate market in Barrie, Orillia and all of Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Canadian Real Estate Analysis, Learn the 5 basics on real estate investing-TV Interview Pt-2

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Sun, 05 Oct 2008 07:59:49 -0500

"In Tune with Real Estate" - Rav Toor and Mark Vosylius of Mana Investments will teach you about investing in Simcoe County, Barrie and Orillia....Mark teaches that investing is about education, not speculation...phone in caller asks how to start, what are the 5 basic things an investor should do before starting to invest and more... For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – We invest in real estate investing as well as home ownership in the Barrie Orillia, Innisfil, Collingwood, Midland areas. We utilize using RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Helping Buyers and Sellers in the FSBO real estate market in Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Why Barrie and Orillia are Still Good Real Estate Investments-TV Interview Pt-1

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Sun, 05 Oct 2008 07:43:33 -0500

"In Tune with Real Estate" Part One - Mana Investments CEO Mark Vosylius discusses real estate investing in Barrie and Orillia. TV show hosted by Rav Toor For more info: (705)-812-1033 Email: mark(at) manainvestments com Mana Investments – www.manainvestments.com – We invest in real estate investing as well as home ownership in the Barrie Orillia, Innisfil, Collingwood, Midland areas. We utilize using RRSP’s as a 2nd mortgage for real estate investing in Ontario Homes by The Owner – www.homesbytheowner.ca Helping Buyers and Sellers in the FSBO real estate market in Simcoe County and surrounding Oro-medonte areas The Six Steps to Success – www.sixstepstosuccess.com – Get to your financial goal quicker…Helping you achieve success in goal planning.

Barrie & Orillia Still Has Market Appeal to Real Estate Investors

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Sat, 04 Oct 2008 18:28:59 -0500

Newmarket - Orillia and Barrie are two of the best cities for real estate investing in Ontario, according to a prominent local investor speaking on ‘In Tune With Real Estate,' on Rogers television in York Region this week.

"Barrie and Orillia are great cities to buy property for investment purposes," Mark Vosylius a Barrie-area real estate investor told host Rav Toor this week. "Barrie's transportation links, Orillia's planned university and Wal-Mart Super Centre all point to a strong local economy which is important for investors," said Vosylius.

In light of the downturn in the stock market, Vosylius still told host Toor that investing is about education, not speculation. "You need to educate yourself on the local economy,not what the national headlines say"

Mana investments, owned by Vosylius, has been investing in Barrie and Orillia for over five years and is looking to expand because of the tremendous opportunities in Simcoe County.

"Orillia has ample opportunity for healthy, smart growth and that's important for investors," said Vosylius. "The average age of Barrie residents is lower than the national average which means they are consumers who can spend more, which is also good for the local economy. These are the things that interest real estate investors," said Vosylius.

"Study the local economy, the local market and learn before investing."

Mana investments has over sixty apartments in the Barrie and Orillia area and is expanding. Training and mentoring other investors is also a key component of Mana investments. A copy of the TV interview is available upon request.

For more information

705 812 1033

Mana Investments - www.manainvestments.com - We invest in real estate investing as well as home ownership in the Barrie Orillia, Innisfil, Collingwood, Midland areas. We utilize using RRSP's as a 2^nd mortgage for real estate investing in Ontario

Homes by The Owner - www.homesbytheowner.ca Helping Buyers and Sellers in the FSBO real estate market in Simcoe County and surrounding Oro-medonte areas

The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.

Buying Investment Real Estate in Barrie & Orillia- Strategy #1

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Thu, 02 Oct 2008 10:38:36 -0500

The Numbers

When it comes to the analysis of numbers many people have gotten rich. And I don't mean from real estate. I mean that spreadsheet programs and number crunching analysis gets too much attention from real estate scam artists. And I am mainly referring to costly real estate programs where complex spreadsheets, bar graphs and pie charts display income, expenses, and loan payments in a myriad of ways. There is a great epitaph that works here "Bull** baffles brains". For small multi-family or commercial projects ( under 1 million) the following example will be all that you will need to make a purchase decision. Whether you are buying in Simcoe County ( Barrie, Midland, Innifil or Orillia) this speadsheet appliues to any property.

Please keep in mind this is a simplified version and with the inclusion of joint ventures or complex VTB's this spreadsheet may not suffice. But in my opinion it's all that you need to make a intelligent decision on a simple deal. ( Keep It Simple Stupid)

The financial statement is one of the first things you need to review before inputing information into any spreadsheet analysis. I will review the financial statement at a later session. It is a good idea to learn what to look for in a financial statement to access the properties strengths / weaknesses. I will first go through the basics of spreadsheet analysis by laying out necessary calculations and what they mean to your potential investment before looking a property financial statement. Learn the spreadsheet and you will learn what to look for in the financial statement.

The fully functional real estate analysis spreadsheet below is available for download from our website at www.manainvestments.com

You will notice Instruction/ explanations along the side for your guidance

QUICK PROPERTY ANALYZER				Instructions
Property Address:				Input amounts into GREY areas only
Purchase Price			$200,000	Enter purchase price

Gross Rents		Monthly	Annually
Total Rents		$2,000	$24,000	Enter total monthly rents collected

Operating Expenses	%	Monthly	Annually
Insurance	4%	$80	$960	Enter required % amount (usually 5%)
Vacancy	3%	$60	$720	Enter required % amount (depends on area...usually 3%)
Maintenance	5%	$100	$1,200	Enter required % amount (usually 5%)
Management	6%	$120	$1,440	Enter required % amount (usually 5%)
Condo Fees (if applicable)		$0	$0	Enter required $ amount from seller
Utilities		$320	$3,840	Enter required $ amount from seller
Property Taxes		$196	$2,352	Enter required $ amount from seller
Total Operating Income		$876	$10,512

Net Operating Income		$1,124	$13,488

Mortgage/Loan Information	LTV		Amount	LTV = "Loan to Value"
1st Mortgage	75%		$150,000	Enter % of requested 1st mortgage
2nd Mortgage	10%		$20,000	Enter % of requested 2nd mortgage

Financing	Rate	Monthly	Annually
1st Mortgage Payment	2.00%	$640	$7,683	Enter % of expected interest rate for 1st
2nd Mortgage Payment	1.00%	$76	$908	Enter % of expected interest rate for 2nd
Total Financing Payments			$8,591

Debt Service Ratios
Debt Service Coverage Ratio (DSCR)	1.22			Desired minimum amount = 1.10
CAP Rate	6.74%			Desired minimum amount = 6% ( the higher the better)

Mark Vosylius

(705)-812-1033

Email: mark(at) manainvestments com

Mana Investments - www.manainvestments.com - Educating not specualting. Learn techniques and strategies on real estate investing as well as home ownership in the Orillia, Barrie, Innisfil, Collingwood, Midland areas. We specialize in using RRSP's as a 2^nd mortgage for real estate investing as well as joint venture agreements and assignment real estate contracts in Ontario

Homes by The Owner - www.homesbytheowner.ca Helping Investors buy and sell real estate properties that cash flow in Simcoe County and surrounding Oro-medonte areas

The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.

Where are home prices heading and how consumer confidence affects the market

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Thu, 11 Sep 2008 18:58:36 -0500

The Battle of the Century- Consumer Confidence versus Economic Fundamentals

Many of you have commented that the "facts" in our current real estate market in Barrie and Orillia indicate a slowing down in home sales and price increases. Prices in some areas (Barrie's south end) have declined anywhere from 3-10% and homes solds has declined to 2006 levels. Yet in many recent articles we have made comments on the strength of the economic fundamentals. So what's going on?

This article can go on forever to re-explain fundamentals, but in a nutshell, consumer confidence is a non-fundamental factor that influences the market. That is, consumer sentient definitely affects the real estate market. How we feel the economy is doing, what we think the future holds bears great influence on real estate prices. Weather or not these "sentiments" are based on facts is inconsequential. They affect the cyclical nature of real estate.

But this is where (again) the educated real estate investor can move ahead of the pack. It seems that consumer confidence prevails over the economic fundamentals in our present condition. The general public's view of the near future has dimmed. This unfortunate prevailing view has affected real estate and reduced home prices in general. This is a time educated investors (NOT SPECULATORS) can find fantastic deals. Investments and decisions made in real estate now can show incredible foresight and business courage. Especially when we look closely at the LOCAL economic fundamentals.

The buying and selling of real estate in Barrie, Orillia, Midland and Collingwood will continue on weather the market is heading up or down. "Professional" real estate investors will tell you that you can make money in any "cycle" of the market. And once again I put my faith in the Fundamentals of the local market...not in the prevailing negative sentiment

Mark Vosylius

(705)-812-1033

Email: mark(at) manainvestments com

Mana Investments - www.manainvestments.com - Learn techniques and strategies on real estate investing as well as home ownership in the Orillia, Barrie, Innisfil, Collingwood, Midland areas. We specialize in using RRSP's as a 2^nd mortgage for real estate investing as well as joint venture agreements and assignment real estate contracts in Ontario

Homes by The Owner - www.homesbytheowner.ca Helping Investors buy and sell real estate properties that cash flow in Simcoe County and surrounding Oro-medonte areas

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The "Good" behind Housing Price Corrections in Barrie,Orillia and Midland

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Sun, 07 Sep 2008 11:27:32 -0500

The Bright Side of Real Estate Price Corrections

With the headlines blasting out how much equity we have all lost in our homes and property investments in most major markets (they call them "Price Corrections"), I thought I would analyze where a price correction comes from and why it's a "good" thing. As well apply it to where I focus our real estate investing efforts, in the Barrie, Orillia, Innisfil and Midland real estate housing markets.

I can't help but view a price correction as a necessary component of a healthy real estate market. That it is a necessary correction that keeps the real estate market stable. It is not to be viewed as a negative component in the real estate business. Price Corrections occur when real estate values escalate too rapidly. It is just like when Ben Johnson won the Gold at the Seoul Olympics. It was a great "short lived moment" of glory for Canada. But we (Ben) won on a false pretense. It's the same when real estate market values rise past that of what the economic fundamentals can handle. We will eventually loose those gains because they were won on false pretenses.

For clarity, an over exaggerated example of a price correction is a real estate "bubble". It's caused by an extreme rapid rise in home/property values that escalates way beyond that of what the ECONOMIC FUNDAMENTALS can bear. That is, the real estate values increase PAST what the LOCAL economy can handle very rapidly. It is caused by over excited home buyers and investors( called "speculators"....I like that word ...it makes people who buy homes without considering real estate fundamentals, sound just like the Gold Speculators of the 1890's)

The idea that you can get rich quickly by buying real estate is exactly the same concept of the Gold Speculators of the Yukon gold rush. Yes some ( very few) got wealthy quickly by striking it rich. It is a concept and dream that only late night television empires are built on. Not reality and Real Estate Economic Fundamentals. But let me clear...very clear. Real Estate is not a get rich quick scheme. It's a get rich slowly scheme. With that mindset, all these flashy news headlines that can sound scary mean very little for our long range goals. Or better put, it's a get rich slowly scheme.

What are the economic fundamentals that the increasing or decreasing values in the housing industry is built on in Barrie and Orillia that I am referring too?

I think the number one fundamental to consider (and there are many) is the HOUSING AFFORDABILITY INDEX. It clearly shows what the LOCAL average person has left over to spend on a mortgage. The magic number is about 35-40%. That means above this number we will see housing prices decreasing (price corrections). Below that number, we will see housing prices increasing. This number means that 35-40% of our LOCAL (Barrie and Orillia) persons income is spent on housing. This what he can afford based on his income....35-40% of his income will be spent on housing.

For comparison purposes lets look at Vancouver. Right now the housing affordability index sits around 65%. That means that 65% of your AVERAGE LOCAL person in Vancouver spends 65% of his income on housing. Vancouver is in a classic housing Bubble.

Price corrections occur when the housing affordability index gets too high, or above the 35-40% range. The Housing Affordability Index in Barrie, Innisfil, Orillia, Midland, and Collingwood areas right now sits around 38%. That is right smack in the middle....so what do we see? A little of everything. Some areas are increasing, some slowing down or flattening out and even some decreases or PRICE CORRECTIONS. All this is GOOD and NORMAL. It keeps the house prices in line with the affordability index.

The reciprocal of this of course is that if INCOME INCREASES then the index will drop - we will have more money to spend on buying a house. So only one of two things can happen to keep prices stable when discussing the housing affordability index, either we have a price correction when we get above 35-40% or we see a wage increase in the average income.

So although we see a slowing down of price gains in Simcoe County recently, consider it a good thing, a NORMAL thing...it will allow us to grow slowly...remember in real estate slow and steady wins the race!!

Mark Vosylius

(705)-812-1033

Email: mark(at) manainvestments com

Mana Investments -www.manainvestments.com - Defining real estate values and economic fundamentals for investors and home owners the Orillia, Barrie, Innisfil, Collingwood, Midland areas. We specialize in using RRSP as for real estate investing as well as joint venture agreements and assignment real estate contracts in Ontario

The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.

Canadian Real Estate...is it affected by the negative Stock Market Headlines?

Mark Vosylius, Barrie, Orillia, Ontario (Mana Real Estate ) — Fri, 05 Sep 2008 09:39:07 -0500

Todays financial headlines sure sounds bad....

Once again I read the papers today and the headlines blare out a collapsing stock market.."Worse drop then in 2000"...reads the National Post. I myself get caught up in the headlines. It is difficult to sip a tall, cool one while reading all this negative news. I have to step back and once again consider the fundamentals of where my (and maybe even yours) real estate portfolio lies.

So do I take my own advice from past blog postings and not panic? ...Do I really have a choice?. The answer is yes I have to take my own advice and go back and study the economic fundamentals of the Barrie, Orillia area and see how they affect my real estate holdings. So I ask, how do some of these national headlines affect real estate properties in Midland? In Collingwood? Does this dramatic drop ( over 700 points on the TSX in the past 3 days!!) affect real estate values of home owners on the Simcoe Shores? I have to say no...no real affect on home prices....yet.

Once again I espouse to the theory that the National news has little effect on home prices. Yes it may be a slow change coming down the road. But national news has little direct effect on real estate values TODAY. And besides, what am I going to do? Sell everything off today. When I read bad news like this I am reminded of the comment Jimmy Stewart makes in the movie "It's a Wonderful Life" where he tells all the panicked people during the bank collapse that old man Cotter is smart because he is not selling...he is buying....why, because everyone else is selling that's why!!

I write these words, in many ways, to alleviate my own uneasiness with the Canadian real estate market. We are definitely being affected by the slow down in the US. But that is because North America is like a giant bathtub economically where we are all in the same water. Canada just has more lifejackets we can cling to to ride out this storm.

Like you, my initial reaction to reading negative headlines is to think we are in trouble...I think maybe I need to sell all my properties, just to be safe? But this blog is like a journal for me. I write about what I love and it becomes therapeutic. I have to listen to my own words and relax. Economically Canada is on solid ground. I can prove that and I have commented on it many times right here. This is a temporary blip...and most important of all, real estate is a long term investment. Not values based on blips in the stock market. So I am going to relax now and get back to business.

There... I wrote about it and it calmed me down...no need for panic...and I feel better...do you?

Mark Vosylius

(705)-812-1033

Email: mark(at) manainvestments com

Mana Investments - www.manainvestments.com - Defining real estate values and economic fundamentals for investors and home owners the Orillia, Barrie, Collingwood, Midland areas. We specialize in using RRSP as for real estate investing as well as joint venture agreements and assignment real estate contracts in Ontario

The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.