Front Street Equity Inc.

Front Street Equity Inc.

October 31, 2006 09:56 ET

Investing in Real Estate Need Not Be Scary

Front Street Equity Slays Halloween Demons And Ghosts

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) - Contrary to popular belief and urban myth, investing in real estate need not be scary, but is better left to the professionals. What better time to slay the demons and ghosts associated with investing in real estate than Halloween?

1. Real estate investing is risky!

Compared to what? Investment risk is directly tied to the amount of control one has over one's investment. Investing in stocks has the least amount of control possible - you are one of thousands of stockholders with no say over the company's direction. Real estate investment generally means one controls one's own property, and can improve it, sell it, rent it or live in it. Actually, leaving your money in your bank is the riskiest of all investments, as inflation will actually leave you with less money than you deposited.

2. I don't know enough about real estate investing to get involved!

There are many ways to get the information needed to invest sensibly in real estate. Appraisers give you unbiased information on what properties are worth - their advice is worth every penny. Engineering reports on commercial or income properties are a must. Their input not only provides an accurate snapshot of the building, it also gives one leverage in price negotiations with the vendor. Finally, bankers won't lend money to purchase a project if either of the above information sources tell one the deal is questionable. Try getting that kind of "double check" information from one's stock broker!

3. I need a lot of money to invest in real estate!

There are many types of investment properties to choose - many that could require a down payment of less than $10,000. Condo conversions - buildings that are converted from a well-run apartment building into a condominium - are a great source of investment opportunities. These suites are generally available from $60,000 and are attractive and stable sources of income. One may also get mortgage insurance on one's income property, allowing one to obtain up to 90 per cent financing.

4. I can't find a good property!

Many companies specialize in offering attractive income properties to investors. These projects are put together to lure investors and thus the numbers are attractive. These companies do all the "due diligence", giving one a level of certainty that the property is, at least, in good condition. Just make sure the information they deliver makes sense. Think before you buy. Do some homework, and check the assumptions the company is using in their financial projections.

5. What if prices drop?

Look at real estate investments as a long-term plan - if one does, price of one's property means little. Good real estate investors look at the income stream from their investment - not current market prices. If prices drop tomorrow - people still need to rent places to live. Rents don't drop because property values drop - in fact rental properties are one of the most stable sources of investment income available.



WHO: Collin Sawatzky, President, Front Street Equity
(www.frontstreetequity.com)

WHAT: Talk to a Canadian expert on real estate investing.
Collin will debunk some of the industry's greatest myths.

WHEN: October 31, 2006


About Front Street Equity

Based in Toronto with properties in Winnipeg and Edmonton, Front Street Equity (www.frontstreetequity.com) gives every investor the chance to profit from owning real estate by simplifying the acquisition process, performing industry-leading due diligence and eliminating time consuming management issues. The company will become the most respected and widely recognized organization in the Canadian real estate investment industry by offering its clients exceptional opportunities and providing an unparalleled level of customer service.

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