Use ‘Well-Selected’ investing ARE there risks involved in real estate investing? Absolutely! And this is especially true jor the uninformed and unwary, yet most associated risks can be reduced consid- erably, and some climinated altegether, through astute analysis and planning. er the past 20 years | have- reviewed thousands of called “great investment pportunitics.” Most of these’ involyed the selier making, large profits with the “inyestor assuming degrees: of risk...” Often thes ith the investment. lines estate. ; The entire purpose or the “Well-Selected” process is to reduce potential risks and to ensure the future health of The specifics of this process that I believe any savvy investor must perform ‘before . acquiring investment o roperty are as follows: -Investment Purpose — .. Why. am I considering this investment? Is it a short term ; or long term investment? y. posed i investment I : consider for myself or for my *- I. designed a system of.:structured analysis | to lentify: and. reduce invest- Does the property offer any added - value opportunity? ‘o¢s it: fit with my’ invest- ent objectives? @. What type of property is it? — Residential, ‘resort, hotel, raw land, revail, com- mercial, strip mall, etc. Do! -understand the inhereat risks associated with cach. proper- _ ty type? Again, does, this fir. with) my long term * objec- tives? g: Where is it?. What. makes is.region, area.or locality a ood investment ‘location? B® Financing — How much money will have co put into the investment in terms of down payment, closing and set-up fees? What type of pri- mary and secondary financ- ing is available and at what rates, terms and conditions’ What other fees are involved? @ Property Condition — How old is it? What is its functional age? How much money has to be spent on deferred maintenance? In what condition is the proper- ty in terms of structure and operating systems? @ For Property and Rental Management — How will I manage it and what vacancy can IT expect? How do I reduce income loss through vacancy? How much will management cost 2nd what will I get for my dollar? ® Property Appeai — Is the property attractive to Prospective tenants now? If not, what must be done to improve its appeal? In 20 ears will the area increase or lose desirability? What facts and indicators justify my forecasts? @ Price, Terms, Conditions _— atin I substantiated that aying 2 fair price and na ¢ terms within all contracts accept- able? @ Timing — Is it a good timie to be acquiring a prop- erty in this area given current market conditions and future forecasts? What are the fore- casts based on? Js there an event, positive or negative (i.e. new industry opening a plant or a mine closing , down) that may substantially impact property vaiues? Beit Scenario ~ How do! ‘ aispase of this investment *: when I. have reached my contained | investment objectives? How do FT liquidate this property should [ be forced to by unforeseen future events? M§ Financial Analysis — Have 1 checked all che numbers and variables that could affect this investment on a “worst case,” “expected case” and.“best casc” sce- nario? Am I willing to accept the consequences should the worst case scenario prevail? @® Greatest No. 1 Risk — What is the greatest risk I will be taking in acquiring this property? W@ Greatest Risk Overall — To I have the knowledge to make an intelligent decision on this property or am I rely- ing on others to do this for me? (Note: bankers, lawyers and neighbors are not good peopic to give vou property investment advice). When an investor asks . these specific questions on these significant component areas and receives the answers that satisfactorily address these concerns then, and only then, do I feel the property is worth further investigation. If the property has successfully passed all of this criteria, then the chances are the property qualifies as “Well-Selected” real estate and will create the retums you expect with a minimum of hassle and headaches. If the property docs not pass the “Well-Sclected” process, walk away — there are plen- ty of propertics in the mar- kerplace that do. — Michael. Dowty is the vice-president of special pro- jects at Century 21 Prudential Estates Ltd. and is @ long-time West Vancouver resident. He can be reached at 273-1744, ADDRESS: 4060 Almondel COO Po mw orereerasecvereearreresscroaeseueees LOT SIZE: 1.1 Acre Coeevecreevesstecseesnmaeeeoneees ’ INTERIOR SIZE: 7387 Sd. FT. CECCK TMS o OEE sere Ere eS OEeSEODNEDE ESO Ra EODEOL NUMBER OF BEGROOMS: 3 Cem eee oecereserecersocasrnereses ease esesess NUPABER OF FLOORS: 2 Z ~ Quality Friday, Juzy 10, 1998 — North Shore News — 47 — SCOCHOHNSTSSOHHHS HS SSHCHEHSSHSSSEHASSHSSTESCSESSSSHSEHCSSSSIOSGHSCHSOHSHSSSHLOSSe SCFSHSeSHSS within a short time of each otber it changed his life’s work. Jones had to travel to Alberta, where ‘his father had been'a successful entrepreneur, to settle the complex estate. He said over the course of 18 months he. became gradual- : ly aware of the financial contra- * wi dictions his parents and-r retired seniors | expe! What he found was thai after a lifetime of dilige Help’s at hand E be - So it was the challenge o finding an answer to this prob- lem that fed Ward to’combin the features of ‘life insurance 4 complex fina stances faced. by senior. in Canada.tod Complete privacy awaits you in this 1.1 Acre Executive: Estate with panoramic: view from. Mt. Baker to Vancouver !sland..This spectacular residence is built: te unsurpassed levels of structural integrity and finish. Professional designed mature landscaping with refiecting ponds, granite bridges, ornamental gardens and fountains adds to the magic of this incredible estate. The 3500 sq. ft. off tiled deck with large: pool | and hot tub takes full advantage of the. staggering views and all day sun (with room for a tennis court beyond.)