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PB4L Personal Business For Life: Examples from Real Estate Practice ... (Aristocrat Rothschild in 1871):
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PB4L—Personal Business For Life: Examples from Real Estate Practice

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Or how I got my Start in Real Estate By Professor Bruce M. Firestone, B.Eng. (Common), M.Eng.- Sci., PhD., Entrepreneur-in-Residence, Telfer School of Management, University of Ottawa; Executive Director, Exploriem.org; Founder, Ottawa Senators; Real Estate Broker and Mortgage Broker, Partners Advantage GMAC Real Estate, Brokerage April 2010

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Terrace Investments Ltd (An Example of Bootstrap Capital) Bought from gathering set to resign Asking cost: $350k First offer (October 1982): the maximum offer, dismisses Second offer (February 1983): the maximum offer (coldest day of the year), acknowledged $10k down, STB 5 years, 0 premium w/essential pmts each yr Fully paid off < 2 yrs "Why if we offer to you, Bruce?" "Since I\'ll really pay you and you believe me." "Where did you get to $10k?" "I acquired it!"

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1025 Merivale Road (An Example of Trading Behavior) Plaza part of the TIL bundle of benefits, esteemed at $185,000 End of 25 year lease with IGA at $1.87 per s.f. Seen as a gigantic issue—square soon to be100% empty Actually immense chance to BUY LOW/SELL HIGH (exchange!) Lipstick redesign with planner Barry Hobin: $120,000 Sub-separate space: $14.00 (Beckers), $6.85 (Active Components), $5.00 (Martial Arts) Sell for $1.1 million year and a half later

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1025 Merivale Road (An Example of Trading Behavior)

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Bob Campeau (An Example of Stand Your Ground) TIL accomplice Admiralty Enterprises goes bankrupt Campeau Corp purchases 80 properties from Receiver including 5 TIL/Admiralty distribution centers TIL had right of first Refusal provision Invoke rights Campeau summons "Essential of the Greater Good"

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Bob Campeau (An Example of Stand Your Ground) Andrew Jacob: "What do you need for your half, Bruce?" "$2.1 million." "However we\'re getting Admiralty\'s half for $400k!" "Why not have any desire to be accomplices with the colossal Bob Campeau?" Larger, better promoted accomplice can kill you "He (or She) who has the Gold, rules," Anon

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Bob Campeau (An Example of Stand Your Ground) They can make $$$ by renting space to occupants in bldgs they possess 100% Empty out 50/50 structures Then come to weaker accomplice and do them "some help" TIL may lose their ½ offer for 0 or even negative dollars < 2 to 3 yrs out Hard to contend for \'more noteworthy\'s benefit\' when you are as yet getting your enthusiasm for 43% than FMV 10 minutes < court hearing, "What amount do you truly need?" "$2.1 million." 5 minutes before: settlement for $2 million, money

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Brookstreet Resort and the Marshes Golf Club (An Example of Trading Behavior and Bootstrap Capital) Bought 62 sections of land of modern area in 1994 for $365k Tough retreat Industrial area in Kanata had gone around 90% + Actually enormous chance to BUY LOW/SELL HIGH (exchange!) Two financial specialists set up 100% of capital Loaned Bruce the $$$ for his 1/3 enthusiasm at 8%, promoted Sold in 1997 to Sir Terence Matthews for $2.2 million Investors each get $725k Their IRR is 57% p.a.

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Brookstreet Resort and the Marshes Golf Club (An Example of Trading Behavior and Bootstrap Capital) Bruce\'s IRR? Limitless Sell for $1.1 million year and a half later Why wld financial specialists credit Bruce the $$$ to co-contribute? Lopsided data + operational and deals experience (Use IRR to compute yr genuine returns: Cap rates are essentially a \'dependable guideline\'. www.dramatispersonae.org/IRR/IRR PowerOfLeverageGoalSetting.htm )

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Villager Home Corporation (An Example of Build and Hold)

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Villager Home Corporation (An Example of Build and Hold)

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Villager Home Corporation (An Example of Build and Hold)

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Villager Home Corporation (An Example of Build and Hold) Santa Cruz, California, around 1969 Big house/little house—1011 and ½ Seabright Avenue (Bruce and his better half) "Old" Lady—needs organization, security + the little house furnishes her with additional wage Carry arranges with me for 25+ yrs Steve Silver et al entryway Ottawa to authorize in-home suites Mayor Chiarelli does this (< he loses race) Legal wherever in Ottawa (aside from Rockcliffe Park!) Fast answer for destitute issue/reasonable lodging/keeping seniors in neighborhood rather than in vertical distribution centers Extra wage for property holder

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Villager Home Corporation (An Example of Build and Hold) CMHC gives up to $25k to changes (trivial credit) Bring dark business sector lofts up to bldg code. Fire isolated/sound isolated and smell isolated units Flexible lodging stock: 2 families, 1 family with more distant family, kids coming back with children, understudy lodging, senior lodging, 1 single family home Add one entryway (or expel it) to roll out these improvements Half level down/half level up (like Scotiabank Place!)

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Villager Home Corporation (An Example of Build and Hold) Tax focal points: enthusiasm on home loan for rental parcel now charge deductible Principal home still not subject to capital additions charge gave redesigns are inside existing building envelope Forced reserve funds from paying off home loan People with less capital can manage the cost of a home Live in your own particular home for under $600 every month Renters pay some portion of your home loan for you—riches impact All expansion in quality goes to value holder

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Villager Home Corporation (An Example of Build and Hold) ABSOLUTE FAILURE! Individuals would prefer not to be Landlords People can manage (or think they can bear) additionally lodging on their own* Construction hazard—cost invades and postpones are executioners YOU ARE NOT THE MARKET! THE MARKET IS RIGHT EVEN WHEN IT\'S WRONG! (* Imagine the normal home cost in Vancouver is currently > $1 million. Presently envision having the capacity to "lease" $1 million from a Bank on a variable rate contract for, say, 2.15% p.a. on the other hand just $1,791.67 every month!)

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Blue Heron Corporation (An Example of Build and Hold)

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Blue Heron Corporation (An Example of Build and Hold) CO and CC biz—overwhelm by substantial scale players Their expense of capital: under 1.5% (Banks, Pen Funds, Insurance Cos, REITS, Publicly exchanged r.e. firms) Our COC: 8 to 12% That resembles contending in the 100 meter dash yet surrendering a lead of 80 meters toward the begin line! Go under the business sector (and over the market– Ottawa Sens + SBP) Mini-workplaces (Terrace Corporate Centers & Exploriem.org) + smaller than usual stockpiling

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Blue Heron Corporation (An Example of Build and Hold) 15 sections of land of mechanical area in Kanata North Cost to develop sheds: $35 per s.f. Rents are $12 per s.f. every year gross +/ - Not too administration escalated Lots of rivalry Our upper hand—fabricated a duplex nearby where Manager lives + month-to-month leases Retired individual Provides security/leases units Free lease and different advantages

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Blue Heron Corporation (An Example of Build and Hold) Kanata needed BHSC to fence and door with razor wire whole site Part of Village We never fenced it yet put in an entryway Gate never shut! Zero vandalism/burglary (in this way!)

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Blue Heron Corporation (An Example of Build and Hold) 92% to 96% inhabitance (can never really get to 100%) Bought lands for $92,500 Rezoned \'Antiquated\' provincial improvement: mother/father/family in front with the plant/distribution center/workshop/ranch/outbuildings/stockpiling in back Sold for $1.1 million

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Presidential Executive Travel Apartments (An Example of Build and Hold) 16 condominiums—Holland Cross and Robertson Mews Ground floor access Lockboxes—self induction at painfully inconvenient times Furnished units Telephone, link, fundamental kitchen foodstuffs, and so on prepared to go Cleaning administration—additional charge/benefit focus Apartment rents: $1,200 month to month (1990s) PETA rents $3,000 month to month (1990s) Used for Sens players/exchanges

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Presidential Executive Travel Apartments (An Example of Build and Hold) Not too administration serious High quality inhabitants—paid by tech cos/couple of issues with accumulations Limited rivalry Developed long haul associations with HR supervisors at nearby firms Simple way out strategy– MLS.ca Leases were 30 days to 90 days—a greater number of offers required than regular one year res rents No noteworthy harm to units

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Stittsville Bungalow (An Example of Asymmetric Information) REALTOR puts Seller and Buyer customers together Not on MLS Seller needs to offer with 0 showings Seller needs to offer/lease back so his elderly guardians in-law can stay in situ for up to 3 yrs Sale is \'impeded " accordingly Buyer is speculator with restricted spending Buyer requires co-financial specialists to finish Co-speculators need to partake in task since: buy of home for $40k < FMV, 3 yr leaseback at rent > FMV, Tenant pays all utilities, stable/unsurprising income, paydown of home loan by Tenant, increment in worth after some time, cabins in expanding request

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Stittsville Bungalow (An Example of Asymmetric Information) 2 x Dentists co-contribute They have cash yet no time Managing accomplice has time yet no cash Managing accomplice carries associations with REALTOR, property administration abilities, the chance to purchase beneath business sector and to lease above business sector Investor ROE: 6% money on-money + 7% pay down of home loan by Tenant + 1.5% r.e. expansion (~4.5% on value) + $40k from beneath mkt buy Much better give back that GICs (3.15% to 3.85%) Managing accomplice gets 20% of the arrangement for "nothing"

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Thurston Drive/Auriga Drive Industrial Condos (An Example of Build and Hold + Differentiated Value) Too numerous financial specialists pursuing \'malls\' or \'res duplexes, triplexes, quads\' Buy item that others disregard/stay away from the behemoths like Banks/Pen Funds/Insurance Cos et al Can buy mechanical townhouses in Ottawa from $165k to $350k+ Create some DV (Differentiated Value): e.g., include a mezzanine with independent passageway Can lease upper level independently from

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