TYPEABC

Date: May 11, 2013

Name: Residential & Commercial Real Estate Success, Secrets & Tips

Presenters: Ozzie Jurock, Eric Yeh

Taiwan Young Professionals and Entrepreneurs Association of BC (TYPEABC) is a social group that encourages young professionals to build strong foundation in their business worlds. This seminar focuses on real estate investment in our current market.

Ozzie Jurock, President of Jurock Publishing Ltd

Jurock believes the next 20 years trend will focus on Baby boomer generation. The global factors of our current market will be based on timing, trend, cycles, and inflation. In addition, the local factors will be based on inward migration, affordability demand and supply, and interest rates.

People always believe inflation is a certainty, but inflation will continue to increase. The massive change will be change from paper asset inflation to hard asset inflation.

“The rich will continue to park their money, and the rich will continue to flee”

Real Estate is a currently the best investment in the market. Real estate can leverage, create mortgage reduction and defer capital gains for 5 years.

Three important beneficial key points to look for in Real Estate Investment:

• Property title and unique niche
• The more income a building produces, the higher the building values will create
• Select area that is fast growing and under appreciated

In our world today, values grow where people go and people go where jobs grow. Moreover, people do not get what they deserve, and they only get what they negotiate.

Eric Yeh, President of the Real Estate Action GroupTM

When investors are buying existing business, it is important to pay attention to the subject clause. Investors need to review the financial statement and tax return for past 3 years, review the lease and franchise agreements, exam all equipment and current supplier contracts, evaluate all inventory and understand all current employees.

Buying	Selling	Factors on Price
Living or Invest	Reason for Selling	Land Size
Location	Options and Consideration	House Size
Size	Timing	Age
Neighborhood	Pricing	Income Approach
View	Marketing	Cap Rate
School	Offer	Asset Approach
Convenience	Due Diligence	Net Earning Payback
MLS or Exclusive	Closing
Zoning
Comparable
Grow Potential

If investors are leasing a rental property, investors need to understand the purpose of the location, area, and usage. Investors need to know the property zoning and accessibility. There are two types of leases: gross and net lease. Moreover, term options, sublease agreement, property tax, and building insurance are significant factors for investors.

Special clause is extremely important for investors. The special clause includes the regulation of demolition, development or sale. There could be special instruction for the escape and termination clauses. Therefore, investors need to make sure they have the right to first refused purchase or to lease clause and stay open clause in their agreements.

When offers come, there are 10 components investors need to understand:

Time / Date	Buyer / Seller Representation Warranty
Asset	Deposit
Price / Term	Training
Closing Date	Non Compete Term
Conditional Precedent	Condition of Closing

There are 4 important key success factors for Real Estate Strategy. First, investors need to measure the risk. Second, investors need to know their list of money for investing or borrowing. Third, investors need to determine their return on cost. Lastly, investors need to understand the investment period

The strategy for low risk investors is to invest a property that has existing tenants. The average Return on Investment (ROI) for low risk investments is four to six percent. Low risk investments are easy to liquidity.

One the difference between low risk and medium risk is the size of the investment. Medium risk investments need to borrow less, and the ROI is six to eight percent. The ROI comes from the land and it takes longer to buy and longer to sell.

High investments consider development projects. These are large size investments that have investment term. The investments have high ROI of 20 – 30 percent. Investment return comes from land and the buy or sell is influenced by the market.