Gerald Tostowaryk
Wednesday, September 1, 2010 - Thinking of A U.S. Real Estate Investment?
Are you considering investing in the U.S.? Check out this news item;
http://www.inman.com/news/2010/09/1/bulk-buyer-law-spurs-wall-street-interest?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+inmannews+%28Inman+News+-+Headlines%29
Now most of us aren't considering investing in seven or more properties in the U.S. so it doesn't apply to us, but there are two hidden points that are more important to us average small-time investors than the main story.
The first lesson is how importa ...
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at Wed, 01 Sep 2010 09:49:53 -0600
Monday, August 30, 2010 - The Successful Real Estate Investor - Part Three
GAAP, CCA, Capital Expenses vs Operating expenses...say what? What language is that and what does it have to do with commercial real estate investing? Well, some of you probably recognize this as accounting lingo; and it has everything to do with commercial real estate investing....well, at least with successful commercial real estate investing.
In my last discussion on successful commercial real estate investing, I did a general overview of points of importance to commercial real estate invest ...
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at Mon, 30 Aug 2010 20:04:27 -0600
Saturday, August 28, 2010 - The Successful Real Estate Investor - Part Two
Okay, so in my last blog I spoke of the value of common sense in real estate investing. And as promised here is my humble opinion on how to employ that common sense in the world of commercial real estate investing.
Before even looking at a single building, sit down with a professional REALTOR® to review your portfolio and your goals. A true professional will take the time to understand where you are and where you want to be. And you might just find out that you aren't where you should be. Real ...
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at Sat, 28 Aug 2010 13:28:19 -0600
Wednesday, August 18, 2010 - The Successful Real Estate Investor
Well, between a busy schedule and a couple of very short vacations, it's been quite a while since I had the opportunity to make a blog post. One idea did cross my mind while dealing with a prospective customer who had made some bad investments.
What makes a successful real estate investor? I mean investors come and go, get rich in real estate programs come and go, but only a small percentage stay the course in the real estate investment world. Now I can only speak from my experience, and there ...
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at Wed, 18 Aug 2010 11:04:44 -0600
Sunday, July 11, 2010 - Hire A Professional
Ever watch that TV show Holmes on Homes? I have to admit I have never seen it mainly because I am just not interested in most television shows, especially reality (there's a misnomer) shows. But I have seen bits and pieces, and it's pretty easy to gather that he goes around exposing shoddy workmanship. Talking about the poor job our contractor, lawyer, real estate agent, etc., did for us is pretty much a national pastime. Now I have a knack for getting myself in trouble...so why stop now. The t ...
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at Sun, 11 Jul 2010 09:01:15 -0600
Monday, July 5, 2010 - Should I Leverage My Edmonton Commercial Real Estate Investments?
Well, after my last couple of blogs, I can not neglect to mention leverage and my thoughts on how to use it today in the the Edmonton real estate market.
Most of you no doubt know that leverage refers to how much debt one uses to purchase something. A general rule of thumb is that the more leverage one uses, the greater one's return on investment. Sounds great, doesn't it? Well, there is another rule of thumb; the greater the leverage one uses, the greater the risk also. Someone once told me th ...
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at Mon, 05 Jul 2010 11:26:52 -0600
Friday, June 25, 2010 - European Economics. Any effect on Edmonton Commercial Real Estate?
So Greece is having its economic challenges, and now other European countries are wavering. They're a long way from Edmonton, what possible effect could their economies have on our real estate values? Lots.
Now there is an old saying that we all rise to our level of incompetence and I think me disucssing world economics is probably rising way past my level of incompetence...but what the heck. Let's see how far into trouble I can get myself.
I do not know how much trouble the European countries ...
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at Fri, 25 Jun 2010 21:37:34 -0600
Tuesday, June 8, 2010 - Rising Interest Rates and Rising Inflation - Any Real Estate Consequences?
There sure seems to be a lot of talk about the danger of runaway inflation and subsequent rising interest rates. Will it happen? What effect will this have on commercial real estate?
Well, first things first. Will we see runaway inflation and rising interest rates? Now I am not an economist and I certainly do not pretend to be one. Fortunately that doesn't bother me because there is an old saying that goes, "If you placed all the economists in the world end to end, they wouldn't reach a concl ...
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at Tue, 08 Jun 2010 22:25:37 -0600
Sunday, May 23, 2010 - The Real World of Real Estate
Commercial Real Estate is an interesting world. I have to admit, I love my job. Oh it has it's ups and downs, good days and bad days, but all in all it's a lot of fun. As part of my career, about 3-5 days per month I teach new agents coming in to the field. Their comments are quite different than the comments I get from existing agents. The new agents coming into the field want to know what the "real world" of real estate is like, existing agents often lecture me on what the real world of real ...
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at Sun, 23 May 2010 21:29:26 -0600
Saturday, May 15, 2010 - Getting Rich In Commercial Real Estate
Getting rich in real estate. Seems to be the thing to do these days, doesn't it? I mean there are investment groups everywhere, Do-It-Yourself Real Estate Guides, must attend Real Estate Seminars, Real Estate Investment magazines, Real Estate DVD programs, and on and on and on. Any concerns? I mean, does any of this send just a little shiver of concern up your spine?
It seems like real estate investing is the no lose way to go. After all, hasn't real estate made more millionaires than any other ...
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at Sat, 15 May 2010 19:32:44 -0600
Tuesday, May 4, 2010 - Businesses - The Black Sheep of Commercial Real Estate
I just read an article that said 9% of Canadian convenience stores closed last year. Wow 9%. I know that the economy was tougher but that is a big number.
I generally do not do business transactions, I leave that to Graham Hein of our office who specializes in retail businesses, but I do know a few things of note.
Buying a business is one of the toughest decisions to make. It is a well-known statistic that the vast majority of businesses for sale are over-priced. A going concern business should ...
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at Tue, 04 May 2010 22:40:25 -0600
Wednesday, April 28, 2010 - What's my commercial real estate worth?
Hmmm, as a follow-up entry to my last entry about valuing commercial real estate, perhaps a good topic would be about some common misconceptions about the value of our property.
Municipal Assessment
Commonly clients mistakenly believe that the municipality's assessment of their property is an accurate reflection of it's value. In theory it is, but in practice it usually is not. Yes most municipalities including the City of Edmonton use Market Value assessments which means they value it at marke ...
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at Wed, 28 Apr 2010 09:37:58 -0600
Wednesday, April 21, 2010 - Valuing Commercial Real Estate
I want to buy or sell some commercial real estate, how do I go about determining the value? Well, this topic is far to in-depth to discuss in one message, but let me give out a few tidbits.
Land - Well, if it is commercial land, we will assume you are going to develop it. While it is not as simple as it sounds, it is pretty much like this. Once you figure out what you want to build, what would the land be worth if you were buying land and building? Subtract the cost/value of the building and th ...
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at Wed, 21 Apr 2010 19:25:42 -0600
Sunday, April 11, 2010 - Some Real Estate Purchase Contract Legal Issues
Okay, before I start, remember, I am not now, nor have I ever been (but I sometimes wish I was) a lawyer. I am about to relate some legal information to you, so you need to check with a good commercial real estate lawyer if you have any questions.
Occasionally, some rather interesting court cases appear in the news regarding commercial real estate transactions. One that comes to mind was, if my memory serves me right, from BC. A buyer entered into a purchase contract with a seller for a propert ...
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at Sun, 11 Apr 2010 08:25:03 -0600
Tuesday, March 23, 2010 - What? Trust my Real Estate Agent?
I'm sure that buying or selling commercial real estate in Edmonton is no different than buying or selling commercial real estate anywhere in Canada (or the world for that matter), a lot of money is at stake and you really need to know who you can trust.
As agents, when working with clients looking to buy or sell their commercial properties, we often have to contend with the "expert from afar". Some of our clients have people they trust whom they consult on these issues. After all, commercial ...
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at Tue, 23 Mar 2010 10:52:37 -0600
Tuesday, March 16, 2010 - Commercial Real Estate Purchase: Calling The Listing Agent
Okay, so you're looking to purchase some commercial real estate. Because commercial real estate agents have not really embraced the MLS® system in our locality (Edmonton, Alberta, Canada) and many other locales, it is a tough process including searching endless company web sites and driving around the neighborhood. If you've ever searched for a residential property before, you know how much easier it is than searching for commercial real estate. Searching for a commercial property can be a mo ...
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at Tue, 16 Mar 2010 20:25:19 -0600
Sunday, March 7, 2010 - Need to free up some cash for your business?
It was only a year ago everyone was in a rush to buy a commercial property to operate their growing businesses out of. Now, a lot of us are wondering how we can free up some cash to keep our businesses afloat through this downturn. If you're in the group looking how to free up some cash, perhaps you may want to consider a sale-leaseback arrangement. The first question to ask yourself is, do you own the real estate you operate your business out of? If you do not, then a sale-leaseback is, unfo ...
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at Sun, 07 Mar 2010 20:32:19 -0700
Tuesday, February 16, 2010 - Standard Commercial Lease Agreements
When working with commercial leases, most sophisticated landlords have "Standard" lease agreements. If you're new to leasing, it sounds kind of intimidating, doesn't it? Sort of like there is some unknown organization somewhere that produces "Standard" lease agreements and everybody signs them without question because they are "Standard". That word standard sure packs a lot of punch, yet usually it is nothing more than fluff. Truth be told, there is no such thing as a standard lease agreement. ...
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at Tue, 16 Feb 2010 22:06:19 -0700
Saturday, December 19, 2009 - Merry Christmas, Happy Hannukah
Christmas is one of my favourite times of year, when we can forget the cares of the world for a short time and just enjoy family, friends, and to be thankful for the many blessings we enjoy. The world of commercial real estate can be a trying one at times for all involved, especially the last year in the Edmonton area. But at the end of it all, all that really matters is family and health. I thoroughly enjoy my work, but it will never replace the joys of family and friends. I wish everyone a j ...
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at Sat, 19 Dec 2009 07:52:15 -0700
Thursday, December 3, 2009 - Real Estate Investments
With the recent episode of great growth in real estate values in Edmonton (North America for that matter) a lot, and I mean a lot, of Real Estate Investment firms have popped up out of the woodwork. How does one determine which ones are a good investment, and which aren’t? Well, at the outset, I should say I don’t know. If I knew that, I wouldn’t tell the world, I would just invest all my money quietly in those firms. So, I don’t know the future, but I can provide some s ...
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at Thu, 03 Dec 2009 22:07:25 -0700
Thursday, November 12, 2009 - Buying Commercial Real Estate-Conditions
When making an offer to buy commercial real estate (or any real estate for that matter), most buyers insert conditions. Conditions basically say "I will buy your real estate IF this event happens to my satisfaction". They are a way of tying up a property while you do your research, or "due diligence". Common conditions in the Edmonton commercial real estate market are financing, inspection, checking rents and leases, environmental analysis, checking title, checking contracts relating to the rea ...
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at Thu, 12 Nov 2009 20:05:03 -0700
Friday, November 6, 2009 - How Much Deposit To Put Down?
This is a question that Sellers and Buyers will have very different answers on. Let's focus mostly on the Buyer, and the Seller's point of view will be covered in the process. First, I want to start off with a question. Is a deposit required when making an offer? Now I am not a lawyer, but from all the legal information I have seen, the answer is that no, a deposit is not required. A promise to sell and a promise to buy are valid consideration; consideration being something of value that is req ...
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at Fri, 06 Nov 2009 19:41:28 -0700
Thursday, October 29, 2009 - Dead Cat Bounce
Those of you that know me know that I am fond of expounding way beyond the limits of my knowledge and often speak of the "Dead Cat Bounce". I first heard this term some years back; it is used to describe a stock market rebound that has no legs, fools everyone into thinking good times are back, and then it tumbles again. The analogy is that even a dead cat will bounce once if you drop it, but it is still dead and falls back to the ground. You have to admit it is a heck of a good analogy. So, why ...
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at Thu, 29 Oct 2009 10:22:04 -0600
Tuesday, October 20, 2009 - Market Ups and Downs
I feel there won't be any big growth for a while in general in North America. The last 10 years have seen the stock market up and down like a yo-yo and now real estate. I think people will learn (for a few years anyways...until they forget) that "get rich quick" is a pipedream for most of us. But watch out because the ups and downs aren't done yet. So why has the Stock Market and now Real Estate been so volatile over the last ten years? There are so many new tools in the last 10 years for peopl ...
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at Tue, 20 Oct 2009 15:15:01 -0600
Tuesday, September 29, 2009 - Where is the Market Headed?
We have sure heard a lot lately about the much heralded "end of the market slump". What do I think about that? Unfortunately, I believe it is still a long way off. I sure hope I am wrong, but too many major factors are at play, regionally, nationally, and internationally. We have sure had a good ride the last few years with real estate values soaring and everyone and his cousin and his cousin’s dog being a real estate investor/developer of some sort; banks loaned out the money like candy, ...
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at Tue, 29 Sep 2009 23:00:21 -0600
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