Dear Real Estate Enthusiast:

This Edition:

New: Global Highlights

Concrete Equities: Important Update

Five Tips to Profit from Real Estate

GLOBAL HIGHLIGHTS

• Comox Bay Resort and Marina (10% fixed rate of return plus 75% profit
  participation) is generating tremendous interest among investors
• Wildflower Ranch 14% 1st Mortgage Secured Note, with its 2 year term and strong security is expected to sell out over the next 4 to 8 weeks
• The Falls – Deercrest Construction Fund offers a 12.5% 1st Mortgage Secured Note with a 3 year term
• Interest rates are rising for personal mortgages and lines of credit on concerns of stimulus-induced inflationary trends
• “Cautious optimism” summarizes public and professional sentiment regarding the economy

CONCRETE EQUITES UPDATE

Concrete Equities has become well-known to many investors through their omnipresent television commercials and sponsorship of The Dragon’s Den; with their recent troubles, they continue to gain prime-time exposure. 

While this undesirable attention has arisen from investor concerns over some of their Calgary-based commercial ventures (which were not recommended by Global), general anxiety has spilled over to other unrelated activities, such as Santa Clara/El Golfo.

After some urging from Global Real Estate Investments, Vincenzo De Palma, (President, Concrete Equities), made some efforts to address this anxiety through a timely and effective letter and e-mail campaign. His message included some important points of clarification and reminders to investors.

Mr. De Palma reports that the investment in Santa Clara/El Golfo is “not tied to the performance and status of any other investment nor is it tied or legally bound to Concrete Equities”; further “the Santa Clara/El Golfo investment has no tie to any other investment in Calgary and thus the performance of anything else has no detrimental impact on (this) specific project”.

In more positive terms, Mr. De Palma adds that the “El Golfo de Santa Clara region remains viable for future tourist development” and “is a solid, equity based land hold with no mortgage or debt position”.

Mr. De Palma’s message highlights some very important differences between Concrete’s Calgary activities and their activities in Mexico. While their Calgary projects are comprised of commercial real estate, fully (or mostly) developed, and subject to Calgary’s economic environment, the Santa Clara/El Golfo venture is a long-term land bank with development potential, recreational and residential in focus, and influenced by baby boomer demographics.

Global Real Estate Investments will continue to monitor the progress of the Santa Clara/El Golfo investment and will endeavor to gather and report important information from the up-coming Annual General Meeting.

Five Tips to Profit from Real Estate

Global Real Estate Investments recently sponsored a series of public educational events entitled “Smart Money in a Crazy World: Investing Close to Home”. 

The event has resulted in a number of requests (from both attendees and those that could not attend) for a written summary of its primary message. Here is that summary in the form of Five Tips:

Tip #1: Follow the Money

With North America’s aging and growing population, some positive trends concerning real estate are emerging. These trends feature the changing needs and desires of baby Boomers for residences, recreational properties and legacy assets. Investors can capitalize on these trends by getting to those locations that are of interest to baby Boomers and participate in the development of real estate there.

Tip #2: Add Value

Real estate related investments that include the opportunity to add value to the property (through zoning, development, construction, etc) will increase the return potential for investors.

Tip #3: Use Financial Instruments

Investors that participate in real estate by virtue of a financial instrument can benefit in many ways: access small investment opportunities (which reduce risk and allow for diversified portfolios); use existing funds in RRSP’s/rebalance to diversify by asset class; limit or eliminate personal effort and responsibility;benefit from the efforts and experience of professionals.

Tip #4: Get Help

A growing number of independent and objective professionals are available to assist investors with understanding their investment options. Investors can benefit from these services by gaining the resources to develop their own, personalized investment portfolio.

Tip #5: Think Local

The recent stock market crash featured a growth of investment products and services from the financial services industry that had become increasingly complicated and global in scope. While a growing number of attractive real estate related investments are being offered in Western Canada with the added benefit of being tangible, understandable, and providing significant social and economic value.

For more information please contact us at info@globalrealestateinvest.com.