The sun is shining, the birds are chirping and the patio umbrellas have opened up indicating that patio season has returned. But just to be sure for my readers I’ve personally visited several patios just to confirm that it is in fact patio season, you’re welcome Toronto! As a home owner a spring home inspection should be on your to-do list, it’s a good way to keep one’s home free from any minor damage that could become problematic if left unaddressed and it helps ensure the sturdiness of your home for a long time to come. Along with this inspection is the often minor maintenance that should be performed on your home more often than not it doesn’t need to be overwhelming or too time consuming when you approach it with a plan.

Many of us anticipate spring as the season associated with renewal, rebirth and the beauty of natures flowers. Now is also a great time to get your spring cleaning on and toss out much of the junk that has been accumulating with your winter hibernation. The following are some of the maintenance tips that you can do this spring to make sure that your home and your appliances are still in tip top condition:

With the opening of the 2013 Scarborough Stingers baseball season just last week I am reminded of the 3 reasons why I’m such a fan of supporting youth sports in our community.

These days, kids can obtain a lot in taking part in youth sports. The enjoyment and challenges of playing sports can help them grow up mentally and physically fit. It’s a shame that athletics programs sports and PT (physical training) in schools are sometimes the first cuts when dealing with budget deficiencies, often reducing the number of after-school options and activities that appeal to the interests of youth. Sports offer a lot of helpful benefits and advantages that enable youth to grow into successful, well-adjusted and healthy adults.

Spring has sprung and in addition to the regular spring cleaning is spring home maintenance that you should stay on top of. This handy guide from CMHC covers everything from checking and changing your furnace air filters to spring landscaping maintenance and fertilizing your trees and gardens. Download and print out this guide and you'll be prepared all year round!

CMHC Home Maintenance Schedule.pdf

I'm often asked 'what is mortgage loan insurance and how does it work?' So I thought I'd answer that for you with information directly from CMHC. Here are some of the frequently asked questions on this topic;

What is mortgage loan insurance?

Available for mortgage on properties with one to four units, mortgage loan insurance insures the lender against payment default by the homeowner. Most financial institutions require it where the home buyer has less than 20% of the purchase price as a down payment.

Chris Allen, Toronto’s Real Estate Authority is leveraging sales success to fund his philanthropic efforts, Allen’s philosophy of sales and real estate is simple.

“Loyalty, relationships, and results mean success for my clients and my business is powered by their success” said Allen.

When people are looking to invest in real estate they often travel the road most taken. Toronto investors will sink their money in single family houses, both attached, semi/detached and condos. Too often they don’t even consider a great real estate revenue stream sitting right in front of them, duplexes and triplexes. Duplexes and Triplexes have been popular forms of housing in the greater Toronto area (GTA) as well as North America for tens of decades, yet they are often overlooked by new investors.

Investing in a duplex or triplex can be considerably more challenging than purchasing and managing a condo, but it is not much more difficult than investing in a single family home. Quite simply, a duplex are two units under one roof and triplexes are three units under one roof. The challenge becomes not in the exterior maintenance so much as managing multiple tenants at one time. However, juggling multiple renters also means multiple rent checks and that’s something every investor wants!

It was reported recently reported in Bloomberg News and the National Post's Financial Post that Toronto is taking over as the newest and best place to invest in the commercial real estate market. Toronto is making real headway in the areas of real estate due to its vast high rises that exist already, as well as the increasing levels of construction currently occurring to build bigger and even better high rises. Studies show that Toronto will be adding 1.59 million square feet of triple-A space within this year alone, and this grandeur addition will be creating a mega metropolis that already does rival almost any other state within the Americas, and could even surpass the mega metropolis New York City in coming years! Mexico City is the only area that surpasses New York City at the moment in terms of real estate. Due to this extreme building and broadening of commercial real estate in the area, Toronto is predicted to grow rapidly and command very high prices for real estate in the future, and this is why Toronto is an entrepreneurs dream. Now is the moment to invest in Toronto real estate, and anyone who is interested in investing in Toronto real estate should do it sooner rather than later as prices are sure rise in the future. The area is broadening and prices of real estate are rising every day. Furthermore, there are no signs of the real estate market slowing down in Toronto.

At the end of the day, it’s much about commercial real estate in Toronto, and this is mainly exemplified because of the fact that the top 5 bank lenders are currently building high rises in the area, and these top 5 lenders control about 80% of the bank assets in North America. In terms of high rise financial services buildings, Toronto is only second to New York, even now. High rise buildings are being swooped up left and right due to the commercial real estate boom, and businesses as well as individuals are taking advantage of this booming real estate in a big way. The reality is that Toronto is building so quickly, commercial real estate is abundant and available, but probably will not be for long.

There was an article in the Globe and Mail that caught my eye. In the article it highlighted how even in a softer real estate market (particularly south of the border), where some people are finding it difficult to profit from real estate anymore, the small and nimble entrepreneur has been flourishing. It can be difficult at times to discern the easiest way to capitalize on real estate in the most efficient way, but the reality is that anyone can make money if you position your business within the correct sectors. Many of the individuals who are making the most money in real estate recently are the so-called “small players”. These “small players” are making the most impact in the real estate game due to their sound decisions, careful business observations and seemingly out-of-the-box choices.

The individuals that happen to be benefiting from the slowing real estate market include real estate appraisers, home stagers, movers, and the real estate agents themselves. Due to the real estate industry changing so rapidly, individuals who work within these different sectors of the real estate market are now able to garner more money than they were able to make when the real estate market was booming. Home appraisers for instance are able to make great money during this sensitive time because home owners are worried about their individual property values. Getting an accurate appraisal of a home is vital to the selling price of a home and that is what makes home appraisers so valuable. The same is true with home stagers. Home stagers are in demand because the slowing real estate market is creating a more competitive situation altogether and home owners are desperate to beat the competition for the best selling price of their home. There are often specific segments in the real estate market that are down, but the truth is that it has allowed for many individuals involved in different sectors of the real estate market to make a great income.

Everyone knows the Toronto Condo market has been red hot for the past few years. Recently we are seeing a small turn in the market with less Condos for sale and small but stable price increases. While interest rates are still very attractive, lending rules became tougher with new practices put into effect during the summer of 2012. That being said, investors looking to make money in the GTA Condo market may not need to look any further than advertising and marketing their condos as an Executive Rental. The demand is very high these days for non-traditional temporary housing for business executives who are traveling or relocating. The days of putting your executive up in a hotel for a month or two is becoming passé when there are better and more affordable alternatives. So what does it take to jump into this money making endeavor you ask?

Out of the gate you need to find a good realtor who works or specializes in executive rentals or RELO’s (relocations). They know what the clientele are looking for and how much they are willing to spend. A good realtor will also walk you through the steps needed to ready your space as an executive rental. Most executive rentals need to be modernized with updated bathrooms and kitchens and newer furniture. That is not to say that everything needs to be torn out and renovated, it just needs to be no more than maybe 5-7 years since it was last renovated. Obviously, top dollar will be paid for brand new or newly renovated condos so keep that in mind. Next you will need to outfit the space with everything a homeowner would need if they lived there year round. This includes bed linens, bath towels, cookware, dishes/glasses, silverware etc. An executive should only need to bring his clothes and toothbrush with him and everything else should be available in the condo. You will need to provide heat/air, hydro, cable and internet which will all be added into your weekly or monthly fee. If there are additional paid services within your complex such as parking, gym or pool fees, you will need to negotiate those into your fee as well providing the client needs or wants these things. Again, a good realtor will help you with all of these details and the pricing as well. Some executive rentals require a minimum stay of one month, but you may decide to accept shorter stays which opens you up to a bigger market. On average, executive condo rentals in Toronto and the GTA range from $100 to $300+ a night depending on number of bedrooms. That being said, for a $200 per night rental you’re looking at a $6000 a month rental fee.

I would like to introduce a guest blogger for this week, Miss Veronique Simoneau from Ottawa. Veronique shares with us how she was able to use the lessons and techniques from my blog Living for Free, the Benefits of Buying a Triplex to move her family forward with their new real estate investment.

The Toronto real estate market has stabilized over the past several months. Rental prices for residential commercial space are steadily increasing as the economy improves and demand goes up. Now is a great time to invest in a large apartment building. If you are a first time real estate investor it is crucial to understand how to maximize your profits by consolidating expenses. This is where the benefits of owning a large apartment building shine compared to a portfolio of smaller investments.

While you may first think about investing in duplexes, triplexes and single-family homes when it comes to your portfolio, there are some serious downfalls to these investments compared to a large apartment complex. You have multiple financing expenses, multiple tax bills, multiple maintenance costs, multiple property management bills or responsibilities and much more of your time spread out across multiple investments. The truth is purchasing a large apartment complex can often be the smarter choice. It normally is easier to fill vacancies, takes up less of your time driving from investment to investment and can minimize your costs to get the most profit from your investment dollar.

A real estate partnering can be compared to a marriage. Many of them work out well and can last forever, others however crash and burn before the honeymoon is over. It is very important you become familiar with a potential real estate partner who you will end up trusting with your investments because just like a marriage, it is much easier to setup a partnership then it is to dissolve one so doing the proper due diligence beforehand is crucial.

Failure to spend the time getting to know your potential partner and finding out what their investment background is can cause your partnership to meltdown before it even gets off the ground. Find out what other deals they have closed? What is their reputation and can they be trusted? Are you putting your own personal finances in jeopardy by entering into this partnership? What are their goals as a real estate investor? Do those goals meld with your own? Is their personality one you can work with or are you going to constantly be clashing? There are many things that can turn a real estate partnership sour. But, if you do your homework and find the right match then they can be the source of your most profitable deals.
If you are looking to close on very large commercial projects, especially those valued in the millions of dollars, then you are almost inevitably going to end up working with partners. Here are some thing to look out for.

How real estate savvy are they?

If you have spent your entire real estate investment career buying large commercial properties as long term investments used to generate positive cash flow focused on your NOI along with long term equity growth then you want to partner with someone who understands how this type of investing strategy works. If they have only bought properties to fix them and resell them then they may not have the patience to wait for the cash to come in slowly as you do. Ask yourself if this person will add to your knowledge of real estate investing and will that knowledge help you make more money or will they spend all their time trying to pull you into making investments in a different direction. Also determine what expectations they have of you as a real estate partner. If both parties expectations are off then a successful real estate partnership is highly unlikely.

Before you can begin investing in commercial real estate you need to understand what properties fall under it's definition. Many people believe that only large retail centers or office buildings are commercial real estate. The truth is commercial real estate can be anything that is larger than a single-family home. This includes other types of residential properties like duplexes, triplexes, quads, and apartment buildings. A structure can be for residential use and still qualify as commercial real estate. Here are some of the more popular commercial real estate properties.

Apartment Buildings

An apartment building is any structure consisting of more than four residential units. So it must have five apartments or more to qualify as an apartment building. This is one of the more common ways people start investing in commercial real estate because the terminology involved and costs associated with this type of investment are familiar. While it helps to understand what NOI (Net Operating Income) and some other commercial real estate terms mean, you don't really need to understand these to invest in an apartment building. So long as you understand that your rents must total more than your expenses every month (mortgage, taxes, insurance, etc), then you can get involved in this type of investment and learn the rest as you go.

Most real estate investors are familiar with the “fix and flip” strategy found most prevalently in residential purchases. This is where you buy a distressed property and make some cosmetic repairs to it, then resell it for a profit. It is one of the tried and true methods of generating quick profits in real estate and is done hundreds, if not thousands of times a day throughout Canada. However you can use this same philosophy to increase profits from a retail plaza you already own.

Let's say you currently own a 20 unit retail plaza or strip mall. The building is rather old and while you have done all of the required maintenance on it, the building is definitely showing it's age. What most retail plaza owner's fail to realize is how much this effects their ability to collect higher rents and in turn increase their NOI.

Basement renovations are very popular these days. In the past two decades homeowners have ditched the idea that a basement was a place to store your junk or the creepy place for spiders and the furnace to hang out. A well done basement renovation can add a whole lot of square footage and value if you go about it correctly and there is no finer example of fantastic execution of a basement renovation than the work completed by Dave and Steph of Oshawa.

One of the biggest challenges to reworking a basement is water issues. If you have a basement that’s damp, has flooded in the past, smells very musty, or has mold, then you must address these issues before you even consider a renovation. There is nothing more heartbreaking then spending time and money on furniture and materials only to watch them ruined the next time you get a big rainstorm or when the winter snow melts away in Spring. Waterproofing is not fun, not cheap and you get no aesthetic pleasure from it, but it’s worth every penny. This is also a good time to make sure your water heater and HVAC are in good condition and not in need of replacement. Once you lay new floors and paint walls you’re not going to want a plumber dragging new equipment across the space. In the case of Dave and Steph trench work was required for the installation of a new washroom. Finally, when planning out a basement renovation you will want to consider even the smallest details before starting.

I don't know how I'm going to top this in 2013 but what better way to start your first day back at the office than to find a gift on your desk from two really cool people.

I wanted to thank Nancy for the gift of this original portrait painting of her son's stage character Deadmau5. Nancy, knowing I was in the Canadian Forces cleverly incorporated homage to the CF in the background of the painting with our uniform CADPAT design. You always get a great sense of satisfaction helping out your clients but when they give you a highly personal gift, it takes it to a whole new level! I couldn't be more grateful that she took the time to create this one of a kind portrait. Check out her website www.NancyZimmermanArt.com

Putting your first offer to purchase commercial real estate in writing can be an exciting and at the same time frightening event. There are certain legal aspects of the offer you want to make sure are included to protect you. Here is a breakdown of the two most common ways of making an offer on commercial real estate.

Purchase contract vs. Letter of Intent.

Commercial real estate is a funny business. It's value is not dependent on the location and size of the property as much as the income potential of the property. Residential properties such as single-family homes, duplexes and triplexes have their values tied more to the ups and downs of the market and you as an owner do not have much control over increasing the value of the property beyond what it's comparable sales would indicate. However with large scale commercial properties you can increase the value of your investment in numerous ways. One of the most profitable ones is to convert the legal status of the units in the building.

Condominium conversions are when you take a complex that historically has been rented to tenants and convert it's legal status to a fee simple ownership for each unit. To do this there is a rather complicated legal procedure involved where you have to hire an attorney to draw up the condominium documents and then submit them to the province for approval. This normally will cost you up to $10,000 and can take six months or longer to get done. However the profit potential is enormous. Let me give you a real world example.

Not everyone who invests in real estate is looking to amass a large portfolio of properties. Many people just want to have some extra income each month without the management headaches of being a landlord for dozens of properties and hundreds of tenants. If this sounds like the type of investor you see yourself as then you may want to consider investing in a triplex.

A triplex is a building that houses three individual apartments. Each of these can be rented out by a tenant and generate income. Added together, if you do the numbers correctly, they will pay for themselves while also generating a positive cash flow every month for yourself. This is a standard way of investing in triplexes and is done hundreds of times a day throughout the greater Toronto area. However let me show you how you can leverage these units so you get to live in one for free.

When you are considering purchasing a property for commercial real estate use one of the first things you need to make sure of is whether the property is zoned for your intended use. There are three basic zoning categories, each of which then breaks down into multiple sub categories. The basic categories are residential, commercial and industrial. Residential comprises all residential structures including single-family homes and multi-family dwellings that are considered commercial in nature. You need to keep in mind that residential properties of more than one habitable unit are still considered commercial real estate as far as lending and investing goes but for zoning purposes only they are often treated the same as single-family homes. Commercial zoning is normally for office and retail buildings. Industrial zoning refers normally to warehouses, manufacturing and production buildings.

The city of Toronto has a very valuable online tool that will show you the zoning classification of any part of the city. If you visit http://map.toronto.ca/maps/map.jsp?app=ZBL_CONSULT you will find an interactive map of Toronto that breaks down the city limits by zone such as residential, residential apartment, open space, utility and transportation, commercial, commercial residential, commercial residential employment, employment industrial and institutional. Each of these is then further broken down into sub categories such as one unit, two units, etc. This is a great place to start your search for the zoning status of any property located in the GTA.