Prestigious Real Estate Properties makes Real Estate Investment a Snap

Published in the Real Estate Business Edge newspaper Advertising Feature in February 2007. Generate cash flow while you watch property value increase.

Every would-be real estate investor is seeking the fiscal equivalent of the Holy Grail: a fully secured, no-risk deal with guaranteed and robust rates of return.

Unfortunately, the Holy Grail remains elusive. And experience home buyers and sellers realize it’s a rare investment that doesn’t entail at least a minor element of risk. But that’s the key to wise investment in real estate: you’ve got to tap into the highest possible returns while keeping risk as far out of the picture as possible.

At Prestigious Properties, President Thomas Beyer and the Chief Operating Officer Doug Thiessen have shown that the syndicated purchase of carefully selected rental properties can bring real estate investors reliable quarterly cash flow and significant equity appreciation, with moderate risk.

Beyer and Thiessen have developed a highly successful formula that has made money for hundreds of their associates, most of them “ordinary” real estate investors who have never regretted their decision to enter into a syndicated purchase agreement.

“Investors generally want three things: zero risk, regular income on a monthly basis and a 100-per-cent guaranteed chance to watch their equity grow at a substantial rate,” says Beyer, an MBA from the University of Alberta as well as a Gold member of the Alberta Real Estate Investment Network.

“While nobody in the real estate investment community is able to offer absolutely iron-clad guarantees, Prestigious Proeprties CAN enable you to share in the ownership of a revenue-producing apartment building that’s as close to bulletproof as it’s possible to be,” he adds.

Much of the beauty of the plan lies in its simplicity. Beyer urges you to become a landlord while leaving all the hassles to him and his team. His program works this way: real estate investors with a minimum of $25,000 come aboard as partners in a syndicate to purchase an under-managed, under-valued property in a well-regarded area of a promising city such as Edmonton, Powell River, B.C. or certain medium-sized towns in Saskatchewan, B.C. or Alberta.

Beyer likes to refer to his ideal target properties as Class C buildings situated in Class B urban neighbourhoods. These are choice if underrated districts, where property values seem destined to appreciate.

When a purchase syndicate is formed, such properties will be acquired, skilfully managed, appropriately renovated, and eventually re-financed after a lapse of time ranging from nine to 24 months. By that time, rents will have increased, with a commensurate rise in the value of the building in question.

Under the terms of a pre-arranged exit strategy, the syndicate will eventually sell the real estate asset for as much as 30 to 90 per cent more than the original purchase price.

“There will always be demand for residential tenants in dynamic provincial economies such as B.C.,, Alberta and Saskatchewan. Time and again, we have proven the rental market is a good growth area, whether the economy is strong or soft,” says Bayer.

Prestigious Properties expends enormous effort on due diligence, carefully and methodically identifying potential real estate asset able to combine positive cash flow with equity growth. Apartment or townhouse complexes full of renters tend to match this profile beautifully. Because, as Beyer points out, the more rental units in the building, the greater the cash flow – even after taking care of upfront expenses such as taxes, mortgage payments and rental management.

As an example, the president cites the company’s most recent investment opportuniy. It’s a 104-unit townhouse style complex in Wetaskiwin, not far southeast of Alberta’s capital city. Prestigious Properties is currently projecting combined cash flow (generally distributed on a quarterly basis) and equity growth of as much as 15 to 20 per cent a year on this complex. Beyer believes the value of this residential property could easily double within four to five years.

“And don’t forget, there are numerous tax advantages to our program, including flow-through of expenses via our LP. These real estate assets enjoy tax deferred status until such time as they are sold,” Beyer hastens to add.

In short, it’s the perfect way for a man or woman in the street to take advantage of Western Canada’s booming real estate market. Beyer believes mature real estate investors may be kidding themselves if they believe they can retire off a stock-market based investment, such as a mutual fund. They’d be wiser to put their money into a safe, inflation proof REAL estate investment that makes money as you sit back an watch its value appreciate.

Beyer has learned the real estate business from the ground up. An award winning Christian businessman with a glowing track record, he urges you to get smart and go with a winner.

That’s Prestigious Properties. It may not be the Holy Grail, but it’s as close as most investors in real estate are likely to come.

Check out the Prestigious Properties website: www.prestprop.com. Then contact the company at 403.678.3330 or email investor@prestprop.com.

For other joint venture Edmonton real estate property deals and investment opportunities, click here.

Real Estate Help is at Hand and Home Renovations - On the Improve of Real Estate

Got a real estate renovation question? Who better to ask than Reno King Paul Eslick? Published in API January 2007 magazine in Australia.

Question: My home renovation involves pulling out a kitchen cabinet and a wall to create more open space at the back of our house. After much hunting around, I’ve found some terractotta tiles that look almost identical to the tiles already in place through the rest of the kitchen. However, these tiles are somewhat thinner than the originals. What’s the best way to lay tiles so I get a level end result?

Answer: I assume we’re talking about floor tiles here. Tiles that require padding for levelling purposes should be laid onto a finished correct height solid base which has been attached to the original floor with nails and glue. Tiles are then fastened as per the manufacturer’s recommendations. Reno Kings usually tile all their wet areas with 200mm x 200mm white tiles for a BBC room – bigger, brigher and cleaner!

Question: What’s the best approach to painting concrete path or driveway? Is any special preparation needed?

Answer: For unpainted surfaces, new concrete requires curing for at least 12 weeks before painting. All unpainted surfaces, new and old, need to be etched to give good adhesion. Mix one part spirit of salts to nine parts water and spread with a stiff broom until fizzing action has ceased. Repeat on smooth concrete surfaces, wash off and allow drying before painting.

For painted surfaces, scrape off all flaky paint and remove all contaminants like oil, grease etc. Sand smooth surfaces to rough for better adhesion. Paint a small section only and allow it to dry and then test compatibility with old paint, looking for signs like lifting. If poor adhesion is visible, remove old paint. If not, paint as per manufacturer’s instructions.

Painting concrete sounds harder than it actually is. The Reno Kings paint these surfaces often. It gives the house a left and dries in two hours. What a bonus instant equity!

Question: I’m currently renovating a Queenslander real estate property and will be sanding the paint off the old deck and recoating it to show off the natural timber. I’m unsure whether to use a decking oil or a lacquer. What would your recommend?

Answer: Maintaining a natural look of timber deck equates to a lot of challenges to both the timber and the coatings. Decking, either hardwood or treated pine laid horizontally, has weather and foot-abrasive traffic to contend with. For this reason, I’d prefer decking oils as they can penetrate better into the cellular structure of timber. Keeping the natural look will require the deck to be recoated every 12 months.

The Reno Kings love decks and so will your tenants! They add value and increase rents. Pay special attention to the condition of stairs and handrails. You don’t want your tenant having an accident.

Question: Do you have any tips on how to get tradespeople to turn up at the appointed hour?

Answer: It’s a sign of the times unfortunately. The tradespeople have too much work and not enough time to do it in and a small number of workers can tar the rest. Getting tradespeople for real estate renovations from the Yellow Pages without checking previous work ethics is fraught with danger. I suggest you only approach tradespeople reno real estate recommended by reliable sources. When you find a good tradesperson, pay the promptly and you’ll become a preferred client.

The Reno Kings are flexible. If one tradie is a no-show, we move into another area to kept the job going.

Question: I’d like to add a water feature to the front yard of my real estate investment property but don’t know where to start. Is this a project a DIYer can handle or does it call for a professional?

Answer: There are plenty of complete systems that can easily be assembled by anyone. Costs vary from $200 up to $800. My friend Tony at Bunnings says they’re big sellers and all stores regularly conduct free DIY installation classes.

The Reno Kings say be careful of money suckers on your real estate investment property. How much will the rent increase and the house revalue with a water feature? Not much. This sounds like an emotional project. Forget it!

Visit the Reno Kings at www.renos.com.au. Do you have a real estate renovation question? Email it to editor@apimagazine.com.au and we’ll answer it in a future issue of API. If you would like more Real Estate Renovation Tips and Checklists, please visit this link.
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Home Renovations | On the Improve of Real Estate

Australians are spending more on major real estate renovations than they have in two years, as resilient house prices, a strong labour market and high vacant land prices drive people to improve rather than move.

Home Renovators spent $891 million on major works in September 2006 quarter, up 5 per cent on three months earlier, according to the latest Renovations Monitor from the Housing Industry Association (HIA).

HIA chief economist Harley Dale said market conditions in real estate were making major renovations an appealing option. “This is especially the case at a time when land supply constraints, higher interest rates and unjustifiably high government-imposed costs are conspiring to make new real estate residential construction a less appealing option than it should be.”

The average cost of a major home renovation was $86,476 in September, up 3.1 per cent. However, Dale noted that the real estate renovations most susceptible to interest rates – ground floor and upper floor extensions – lost ground.

Published on Page 6 of the Australian Property Investor Magazine – February 2007.