This fund opens up apartment building investing to the retail investors – an asset class historically only accessible to the ultra-wealthy.  As an investor you will participate in in the cash flow, mortgage reduction, and asset appreciation of all of the buildings in the fund- diversifying the your risk. Vantage is also RRSP eligible so you can access, and put to work, the monies you have inside your RRSPs, TFSAs, LIRAs, RESP, etc.

We are offering incentives to the first round of investors – but these spots are filling up very quickly. If you would like more information on how to invest in one of the most lucrative businesses over the next 10 years, please call us at 877-663-8772 or attend one of our webinars at www.investpluswwebinar.com

Here is a link to a brochure to get you started.

Stuart

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Alberta, Saskatchewan lead country in job vacancy rate!

According to the Alberta government, between December 2010 and December 2011, employment grew by 4.9 per cent in Alberta in the province. For the same period, Alberta’s employment increased by 98,800 people, 49.6 per cent of Canada’s overall employment growth.

What this means is that a province with approx 10% of the population of the country has created 50% of the total jobs in the whole of Canada.  We have seen this before.  This kind of job growth draws people to the province in droves.  The mass influx starts to consume the available resources like rental accommodation with vacancy dropping and rents increasing.  The lines at grocery stores get longer, the bars are busier and pretty soon the Tim Horton’s queue will stretch across the parking lot into the middle of the street.  Sadly the service will start to suffer.

Most of this is driven by the massive spend which is underway and more is planned for this sparsely populated province.  Big companies are making some very big and very long term bets and are spending vast sums of money to position themselves for the future.  Thousands of people will be needed to design, build, and operate these facilities not to mention the people needed to service these new employees. As the job market heats up, people are attracted to higher paying jobs and start to spend their money on living and enjoying. Alberta Retail sales growth outpaces Canadian average. Increase of 8.3% from last year.

Since we are making comparisons to the past, I am drawn to the Klondike gold rush of the 1890s.  Thousands descned on small villages to seek their fortune in the gold laden hills. While searching for gold in infectious, interesting and exciting, many overlooked the money being made selling shovels, shoes, and backpacks.  We are firmly focused on the services these new “gold seekers” will use en route to making their fortune.  They will all need a place to live and sleep and InvestPlus Properties and our investors are well positioned to offer these necessities for a good price and create strong returns along the way.

Alberta is the place to invest in real estate.  Just be sure to set up camp before the crowds arrive.

Dare we say the B word?

Stuart McPhail

Suite 404 – 921 5th Ave SW
Calgary AB T2P 0N9.

We are really excited about the new digs and encourage you to pop by and say, “Hi”. The cappacino machine is always ready go to and with Domenic’s Italian heritage our cafes are second to none.

The other piece of great news we have is our Opportunity Fund LP IV is almost full and will be closing to new investors. If you have heard about this and would like to participate then just call us at 877-663-8772. Or if you would like more information, sign up for one of our information sessions on Wednesday nights . Go to www.investpluswebinar.com

1. The ability to generate a stream of revenue from an underlying real estate asset.
2. The potential for additional value growth and revenue through upgrading and improving the underlying asset.
3. Having your tenants pay down your mortgage.

 
Many first time investors run into the misperception that real estate investors just sit back and collect rent cheques every month. This could not be farther from the truth. Investing in real estate is like owning and operating a business. If a pipe breaks, or the toilet plugs, guess who gets to fix it! Even those investors who hire a property manager are saddled with the responsibility of monitoring and managing the manager.

This is where the prospect of investing in a REIT or a RELP seems like a very practical idea; especially for those who want the benefits of investing in real estate but don’t want the hassles of landlording. Real estate should be viewed as another asset you passively hold in your investment portfolio. Including real estate as approximately 20% of your total portfolio has been proven to boost overall returns.[1] 

All of the three key benefits you receive from direct ownership, including the ability to leverage and the potential tax write offs can be realized by investing in a RELP or a REIT. Alas, such convenience does come at a price as both REITs and RELPs charge annual management fees.  This is where assistance from a licensed Exempt Market Representative can come in handy. The Canadian Securities Association has regulated the Exempt (Alternative) Market for Securities by creating a new category of licensing that allows advisors to openly discuss the pros and cons of private REITs and RELPs. They are also able to provide suitability advice to clients with regard to the many options currently available on the market. A knowledgeable advisor should be able to explain to you the various fees charged by any particular REIT or RELP and assist you in determining one that suits your needs.

Generally REITs or RELPs with smaller amounts of assets under management will charge slightly higher upfront fees than one’s with massive amounts of assets. This is because their active management style is designed to allow them to seek out and acquire hard to find undervalued assets and then aggressively grow values through strategic renovations, increasing revenues and decreasing costs.  The larger operators tend to be more willing to pay market prices and collect their asset management fees.

While there are publicly traded REITs, many investors choose a private real estate deal because these private opportunities  are less likely to move in tandem with the public markets. This is partially due to the fact that the value of these private REITs and RELPs is closely linked to the value of the underlying assets and not the sentiment of the general market.  

“I can’t think of a good reason to own real estate personally if you could find a well run REIT or RELP” says Stuart McPhail of InvestPlus Properties.
Stuart sees little difference between the landlord route and the indirect route except that the former have more control, more work, and more liability.

The bottom line is being a landlord is always twice as much work as people think. So the next time your tenant calls you at midnight to fix their plugged toilet, think about how much time and effort you could save by investing in a RELP or REIT.

Please visit Investplusproperties.com/wordpress/ and sign up for our newsletter to stay on top of the Alberta real estate news! Call me at 403-473-8557 or email cbiasutti@investplusproperties.com.

Happy investing!

Join Stuart McPhail and Domenic Mandato as they walk us through our newest building in Calgary Alberta.

Now what also happens is inflation starts to rise.  Just look at the price of gasoline.  If GDP starts to grow quickly then we will see inflation start to increase beyond the acceptable level of approx 2%.  This 2% is the magic number according to the Bank of Canada.  When inflation is above 2% then the Bank will attempt to increase interest rates to cool off the economy and reduce the inflation.

But the Bank of Canada cannot change the interest rate on a province by province basis, they can only control the interest rate on a national level.  So if they increase the rate to slow Alberta down, they will also slow the Ontario market and potentially hurt the manufacturing sector of Southern Ontario. I think the rates will remain static over the next 6-9 months while the economic engine of Ontario gains solid traction.  During this time the western provinces will chug along merrily, business will create new jobs, more people will move to fill those jobs, and the demand for real estate will increase.

Visit our webpage to find out ore information on our current Alberta Investment Opportunity

Stuart

 As we enter spring of 2011 all of the fundamentals that characterized the last two booms in Alberta are once again lining up. In fact, almost every economic report released this spring indicates the fundamentals have never before looked so positive for the long-term future Alberta economy. This factors into the turmoil that is currently occurring in many of the less stable oil producing regions around the world, the massive debt being racked up by the United States, and the strong Canadian dollar.

 As in the previous Alberta Booms, many investors in provinces outside Alberta have already recognized the positive economic indicators and have jumped into the market. My wish is to give you the facts so you too can take advantage of the next Alberta Boom.

Here is a quick snapshot of what’s happening right now in the Alberta economy that will lead to a significant increase in real estate values over the next five years.

 Below is a graph that can be used to project how various economic fundamentals affect future real estate values.[1] 

This graph very clearly lays out what economic fundamentals to pay attention to when investigating a particular region to invest in real estate.

 So how do things play out right now for Alberta?

 GDP growth is the foundation of growth in any sector of the economy and real estate is no different. As a province Alberta is set for solid growth for 2011 with the RBC pegging GDP growth at 4.3% and the Conference Board of Canada stating Alberta will lead the country in GDP growth for 2011. On major city level, Calgary and Edmonton are forecasted to lead the country in GDP growth for major cities for the next 3 years.

 An old adage in real estate investment is “find out where the jobs are going to be and buy real estate before they get there”. This brings us to the second fundamental to consider after GDP growth, Job Growth. Alberta leads the country in employment gain, creating close to 14,000 new jobs in February. But getting back to the above adage, where are the future jobs going to be created?

 The good news is the upgraders to the northwest of Edmonton, announced before the recession then cancelled, are now back online and are expected to alone create another 10,000 new jobs. The Construction Sector Council recently released its forecast for labour demand in Alberta until 2019 and the numbers are staggering.  Between 2012 and 2014 Alberta will need almost twice as many jobs as it needed between 2006 and 2008 during the previous boom. An increase in Job growth causes an increase in population growth by attracting people to the province both interprovincially and from directly overseas. The increased population needs to find somewhere to live and this leads directly to an increase in rental demand and for our industry, the multi-family industry, an increase in property values.

 As the graph below indicates, more people than ever before are moving directly into Alberta to once again take advantage of the every increasing demand for workers. (The 2010 numbers are only for the first 3 quarters of the year!)

The momentum is beginning once again for Alberta and the sophisticated investors know to get in ahead of the cycle. At Investplus Properties we do not speculate, we invest based on proven economic fundamentals that have paid off enormously in the past and will do so again. Doors like this only open so often, and it is your job to step through them.

[1] Don R. Campbell, Cutting Edge Research Inc.

Both of these buildings will add tremendous value to the fund not only due to the low negotiated purchase prices, but also due to the value we can add through our renovation and improved management processes.

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The highlights of the 3 buildings in the fund are:

1. Part of the LP since Aug 2010 The Metropolitan, a 33 suite building in Edmonton for $3.0M. We have reduced the vacancy from 39% to 0% and increased the monthly revenue from $18k to $25k. Current Value of building is $3.59M

2. Newly Added Newport, a 16 suite concrete condo complex in the Mission area of Calgary purchased for $1.72M through the bankruptcy courts.  This building has been appraised by a certified 3rd party appraiser at $2.3M (a net gain of $400K) upon completion of renovations.

Since this building was purchased via foreclosure sale there are a considerable number of vacancies, so our plan is to renovate the empty suites immediately and then fill the building with top quality tenants.

3. Newly Added Centennial, a 20 suite apartment building in the Inglewood area of Edmonton purchased for $1.7M is currently appraised by a certified 3rd party appraiser at $1.83M and a value of $2.0M upon completion of renovations. This building is a real gem, for 10 of the suites are already renovated to a very high standard, leaving only 10 suites to refurbish – giving the fund a fully renovated and appealing building.

Stay tuned for video updates on the properties in the nest few weeks.

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Invest Now Before The Unit Price Goes Up on Mar 31 2011!

Investor interest in our fund has been very positive and to date we have raised over $3 million.  We anticipate this number to grow in the next few weeks as investors take advantage of the current LP Unit prices before the pending price increase. It is not too late to get involved  - but don’t wait too long for LP Unit prices will beincreasing by 10% on March 31 2011

Because the building has done so well and in an effort to reward our early investors we will be increasing the Limited Partnership unit price from $5000 to $5500 at the end of March. This still provides a little bit of time for those of you who wish to increase their position within the fund. If this is something you’d like to investigate please contact your financial agent, who’ll be able to assist you with the documentation.

2011 – Positive Signs Continue

Our positive outlook for 2011 remains unchanged.  The Alberta oil sector recorded its largest land sale of the year bringing in $175M and ConocoPhillips Canada’s new president is focusing on developing their in-situ heavy oil reserves.  This will undoubtedly create new jobs. Additionally, in a recent article in the National Post “Canadian exports surged in the final three months of 2010 by 17% annualized, the best such performance since 2004, helping the economy advance 3.3% in the fourth quarter – and 3.1% for all of 2010″. Many of those gains have come from emerging market – markets other that the USA. We still feel that Alberta economy will continue to grow throughout 2011; growth which will attract new businesses and tenants to the province.

Stuart

“It’s a good sign in the sense that whenever you see that kind of movement, it’s an expression of a labour market that’s healing after a pretty severe recession,” said TD senior economist Pascal Gauthier.  I view this as another good sign that the economy in Western Canada is on the road to recovery.  While the road will be a bit bumpy at least the journey has begun.  The other reason I am excited by this news is that studies show that 80% of new comers to a province will rent for the first 2 years.  This is very positive for the apartment building business.  As more and more people come to the province the existing vacancies decline and the rents increase.  This increase in rents is good news for our investors.

For more information on how you can benefit from this influx of people to the province, join me for a informational webinar. Just pop by our webpage www.investpluswebinar.com to find a time which works for you.

Next time you see a flock of birds flying over head, just remember that it is not only animal which migrate.  The reasons may be the same – in search of a better lifestyle, but when humans move, it usually means there is money to made. Following the people may prove to be lucrative!

Stuart McPhail
InvestPlus Properties Canada Ltd.
Real Buildings, Real Investments, Real Returns.

Tel:  403.663.8772
Mobile: (403) 680-5869
smcphail@investplusproperties.com
www.investplusproperties.com