(604) 830-2438

 

CELEBRATING 22 YEARS

Steve and I met on July 7, 2001 and our first vacation was to Honolulu.

The same water feature is still there at Kuhio Beach Park.

It is amazing to reflect on 2 decades of accomplishments, from managing 528 rental properties in 4 joint venture partnerships and 5 limited partnerships, to our first construction project of a 191-unit purpose-built rental building in Langley Township.

My 80-year long term vision is broken down into decade intervals.

17 years later, we exceeded the 20-year milestone goal with over $100-million assets under management.

Currently working on the next decade’s $1-billion milestone.

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MELE KALIKIMAKA CHRISTMAS

Aloha greetings from the island of Oahu.

We took our granddaughters, Kaydence and Jaidan, for their first trip to Honolulu, Hawaii.

It is a tradition with our US-based family to dress up in matching outfits.

Our 2020 Myrtle Beach Christmas theme was red and white.

This year’s theme is green & blue Seahawks colors.

Wishing you all Mele Kalikimaka, the Hawaiian phrase for Merry Christmas.

You may recognize this Bing Crosby song that made this phrase popular.

 

July Ono.

EXPONENTIAL FUNCTIONS

We tend to overestimate what we can do in the short term and underestimate what we can accomplish in the long term

You can see this in action when you stay committed to your goals because in doing so, you align yourself with the exponential function of growth.

What does that mean?

If you left your money in a savings account over a very long time, the amount of money grows exponentially due to compounding interest versus simple interest. 

But, if you’re not getting double-digit interest rates, the compounding takes much longer. 

This is how investing in real estate can accelerate your wealth when you play the long game.

SUBJECTS REMOVED AFTER 3 YEARS

Patience is a virtue in real estate investing when it comes to timing a transaction, whether that is to buy, to hold, or to sell. 

The negotiations for the Lougheed project that started in 2020 is finally heading towards completion. 

The last subject was removed on December 20 and closing is 60 days after that. 

Accredited investors will receive an invitation to attend an investor presentation in January. 

Reminder that we qualify investors through the National Instrument 45-106: qualified investors are close family members, close friends, close business associates, and accredited investors.

REVERSE ENGINEER YOUR RETIREMENT

As with all of my short and long term plans, I reverse engineer the end result and work backwards to determine the intermediate steps. 

It’s like planning a road trip: you know your destination and reverse engineer the streets back to your starting point. 

The same principle applies to money, finance, and real estate investing.

Take a look at this Compound Interest Calculator and plug in Age 40 at 5% interest with an initial investment of $100,000 (leave the monthly savings amount blank).

In 25 years, that $100,000 will compound exponentially to $348,129, but that is not going to be enough to fund your retirement.

Now change the interest rate from 5% to 15% and see what happens: compounding double-digits produces a twelvefold increase to $4,154,412. 

My plan is to eventually move into an assisted living facility and these vary between $3,000 to $7,000 or more per month.

Let’s go high end and extrapolate $10,000 per month over 20 years = $2,400,000, and that’s the amount to reverse engineer today.

HITTING THE FSR JACKPOT

One of the basic tenets of real estate is highest and best use. 

Raw land such as forest must be cleared and managed to become agriculturally productive.

Improvements can be made by servicing raw land with water, sewer, electricity, and roads.

These lots can then be improved by building a single family dwelling.

Residential lots are traditionally below 1.0 FSR.

FSR is Floor Space Ratio; some municipalities such as Langley use Units Per Acre (UPA).

A higher FSR translates into densification of the lot; for example, 1.75 FSR is a 4-storey building.

Developers seek to mitigate their building risk through economies of scale: why build 1 house when you can build 4 or 10 or 50 units.

All municipalities have an Official Community Plan (OCP) designating low, medium, and high density areas.

The City of Coquitlam has designated portions of the Lougheed Highway corridor for high-density towers allowing developers to rezone land from 2.5 FSR to 20+ FSR, exponentially increasing the land value.

WHY INVEST IN REAL ESTATE?

Competitive Risk-Adjusted Returns

Real estate returns vary, depending on factors such as location, asset class, and management. Still, a number that many investors aim for is to beat the average returns of the S&P 500—what many people refer to when they say, “the market.”

About July Ono.

JulyOno.com is a marketing platform for a real estate investment company. We have been actively involved in the Lower Mainland area real estate investing for a number of years.  Our mission is to provide local housing and commercial workspace to quality tenants while at the same time providing an above average return on investment (R.O.I.) for our investor partners and for ourselves. It is truly a win-win-win way of investing!

July offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact July Ono.

For more information about July and her investment program, please call (604) 830-2438 and email her at july@julyono.com or visit https://julyono.com/