Kevin Schroeder Realtor
520-45715 Hocking Ave v2p6z6 Chilliwack, BC, Canada

Congrats to my client on successfully leasing their second floor office space. An extra big applause to a great local company on their expansion to Mill Street.

Coming Soon. 1000 SF of retail space with absolutely amazing visibility. Everyone in town will see you. Contact me and be the first to get details.

Congratulations to Tracey S. on the start of her new business and the leasing of her first location. Watch for updates on this Chilliwack business.

Phenomenal development potential. Presently zoned rural residential but, designated in Chilliwack's Official Community Plan as General Industrial. Located on .68 of an acre, on a street with a number of industrial zoned properties and close to Hwy #1. Develop now, or hold and collect rent on the 3,000 sq.ft. industrial shop and separate home with in-law suite. Industrial land is hard to find and only going up in price. Buy today and watch your investment grow. Sale Price: $1,850,000

Clean and well-maintained office space with wide open views through the many windows. Located in the long-standing Chilliwack Medical Center on Main Street. Move your medical or counselling business next to Lock’s Pharmacy and other medical practitioners. No concerns for parking with a large private lot. Tenant inducements available for qualified tenants.

Just Leased. Another great business moving to Chilliwack. Lots of great things are happening. If you are a Landlord looking for a new Tenant or business needing new space, give me a call. Happy to discuss how I can help.

Just Sold! Congratulations to my client Vince B. on selling his downtown Chilliwack property. P.S. The restaurant is still owned and operated by the same great people. Stop by for dinner tonight.

We have qualified clients looking to buy and lease all types of commercial and multi family property in Chilliwack and Abbotsford. Finders fee available for all completed deals. Make some $$ for Christmas. Know anyone with commercial property? Lets talk.

Just Leased. Flat industrial land with close proximity to Highway 1. Not much land like this available anywhere in Chilliwack. Happy we were able to assist our client with locating something that wasn't listed.

Congratulations to my clients Pacific Frontier Investments on the purchase of their next camp resort in Agassiz. Looking forward to watching the transformation of the property. Make sure to follow their page for updates on this and other locations.

Very proud to be part of the team that has taken this property from concept through to development and now on to home construction. You will not find a nicer more private neighborhood that is only 5 min. from Hwy 1 in Chilliwack. Pick from 3 or 4 bedrooms plus 1 or 2 bedroom legal suites. 2 or 3 garages available. Good sized property with flat lots. All located on Swallow Place (Little Mountain), Chilliwack. My awesome residential team already have three sold!

Top 7 Reasons Why Chilliwack is the Place to Buy Investment Homes Living in Chilliwack it is easy to forget how lucky I am to live in a place with such perfect conditions to buy residential rental property. Here are my top 7 reasons why Chilliwack is a great market to buy investment homes:... 1) With the minimum down payment, you can purchase rental homes that cash flow. 2) Over time properties appreciate substantially in value. It is extremely rare to buy a rental home anywhere in N. America and get cash flow together with appreciation. 3) Opportunity to purchase homes on larger lots that have subdivision or development potential after the home is past its economic life. 4) Potential to buy in older neighborhoods where owners are renovating. Thereby, increasing the value of the neighborhood. 5) Proximity to larger cities with a work force that moves to Chilliwack and commutes. 6) Historically low vacancy rate. CMHC reported a 1.4% vacancy rate in 2019 and only 5 times in the last 20 years has it inched above 5%. 7) Average monthly rents continue to increase. Growing from $675 in October 2009 to $956 in October 2019 (as reported by CMHC) an increase of over 40% in only 10 years. As we know history is no guarantee of the future. However, with a lack of land in Chilliwack to build, the supply should remain relatively low. Add to that, the area is one of the most beautiful places with best qualities of life in the world and we should remain a top choice for families and retirees to move for years to come. Interested in chatting about purchasing a rental home in Chilliwack. Give us a call or email we would be happy to chat further.

When leasing or purchasing a commercial property and using my services, you pay me absolutely nothing. Pardon, did I just say that? Yes, you read that correctly. You pay me nothing (but a bottle of wine might be nicelol). When engaging my services, you will receive my expert advice, knowledge and experience to assist you with the following:... Finding a suitable location Market analysis of the location Preparing the offer Negotiating with the landlord / seller Reviewing the lease or sale agreement and more You are probably wondering how I get paid (and no, I do not work for free). Upon completion of the agreement the landlord / seller will pay me. You receive all of my services and my loyalty to act in your best interests and someone else will pay me. The only time this may change is when leasing or buying one of my listings. In this instance you would still not pay me. However, I may not be able to provide you the same services as my loyalty started with the landlord / seller. Should this situation arise, you will know in advance and I will further explain. Thinking about a new location to lease or buy. Give me a call. I can assist with any property no matter if my name is on it or not.

Looking for privacy? This is the place for your dream home. Beautiful 4.76 acres and only minutes from town.

Should I Buy Residential or Commercial Income Property? There are pro’s and con’s to both residential and commercial income properties. In many cases I find the best route is the one you feel most comfortable with. If you have owned or leased commercial property in the past, you may feel more comfortable with it because you understand it and visa versa. The following is a pro’s and con’s list for both classes of real estate (by no means is it an exhaustive list).... Residential income property. Pro’s: People always need somewhere to live. Interest and expenses are tax deductible. Can typically find new tenants in a short period of time. Property value appreciates over time. Rental rates rarely go down. Someone else pays your mortgage. More liquid then commercial real estate. Provincial tenancy act simplifies agreements and procedures. Residential income property. Con’s: Max. rent increases are set by legislation. Market rates may be higher than you are able to charge until you have a change in tenancy. Cost of renovations and updating. Can be time consuming and costly to remove poor tenants. Rising taxes and insurance without the ability to pass on the expense to tenants. Commercial income property. Pro’s: Long term leases = stability. Interest and expenses are tax deductible. Tenant pays most building expenses as part of triple net. When costs go up (i.e. insurance, taxes, etc.) monthly triple net charges also increase. Property value appreciates over time. Great locations tend to increase in value more than residential property. Someone else pays your mortgage. Process to remove a bad tenant can be much quicker than a residential tenant. Frequently the tenant pays for all or a portion of, interior reno’s and updating and at times exterior as well. Commercial income property. Con’s: Can take longer then residential to locate a new tenant. City zoning dictates the type of tenant that can lease the property. Poor economic times may lower rates. Leases require a lot of knowledge and often involve the assistance of a lawyer. Property may take longer to sell then residential. Still not sure what direction to head in. Do not make a quick decision. Ask different landlords what type of real estate they like and why. Consider what they say, and as mentioned at the start go with what feels most comfortable. Give us a call or email at any time. Happy to discuss this further and assist with purchasing your next property.

Looking for an office space in Chilliwack? I have you covered. Message or call me for details.

Income real estate is a long game. Income producing real estate is a long not short game. Should you have an appetite for greater risk and the short game, there are real estate plays that one can look at. Such as flips, subdivision creation and speculative building. This article will key in on the long game of income property investing. Most buyer’s and owners of income/rental property never get in with the thought of holding it for the short term. However, when market condit...ions get scary it is east to allow emotions get the best of us. It is during this time that we make emotional decisions that are not based on fact. This is almost always the wrong way to turn. During these scary times there are a few things that we can remind ourselves to stop the emotions from taking over. When the property values drop, it is extremely rare that the income generated drops. Keep collecting that rent and use it to pay down the debt. When property values decrease it does not mean you are losing money. You only have the chance to lose if you sell in a down market. Hold on if at all possible. History has told us time and time again that when the market drops it does come back. Be patient. The other mistake I see is income property owners selling when the market is high, with the thought of saving the profit and getting back into the market when prices soften. In short, they attempt to time the market. This is extremely difficult to accomplish and very rarely do I see it work. However, there is a strategy that can take advantage of the uptick in the market while not selling the property. When property values increase you may be able to re-finance by way of a line of credit mortgage. This will free up cash to purchase additional properties when a good buy comes available. Example: June 1st 2016 you purchased 1234 Easy St. for $600,000 with 20% or $120,000 down. Leaving a mortgage of $480,000. June 1st 2020 the mortgage has $424,000 remaining, the market value has increased and the home is now valued at $800,000. Take out a line of credit mortgage for $640,000, pay off the original mortgage of $424,000 and you are left with a line of credit of $216,000. This can now be used as a down payment when the right opportunity presents itself. Real estate has created multi-generational wealth. However, one must be patient and play the long game. Considering the purchase of your 1st or 23rd income property. Give us a call, we would love to chat with you.

Now Leased. Over 2500sqft of industrial space in a great central location. If you are looking to sell, buy or lease give me a shout. Would be happy to go over the process and what we can do for you.

Bright and open 756sqft office in a clean professional building. Central Sardis location only one block from the Vedder Road corridor. Space consists of two offices plus a large open area. Enjoy coffee breaks or after work beverages on your own private patio with amazing mountain views. You read that right. This comes with a large private patio.

What is a Cash Flow Positive Property? A cash flow positive property is an income producing property (commercial or residential) that generates more annual income then the expenses it incurs. A cash flow negative property is exactly the opposite of that and is one that has more annual expenses then income. There is a thought that a cash flow positive property only needs to generate more income then the mortgage payment expense. Yes, mortgage payments do make up some of the ex...pense that are required to come off the total income. However, so do all other property expenses. The formula to calculate if a property is cash flow positive or negative is: Total Income (less) All Expenses = Cash Flow (could be positive or negative) Understandably, expenses can vary from month to month. However, when researching if a property has positive cash flow a budget should be prepared that takes all potential expenses into account. After purchasing a property, it is a great idea to save for these expenses in the months that they do not occur. Not all properties will have the same type of expenses. Items that may change the expenses are. Location, age, style, commercial or residential and common areas. Below is a list of common expenses: Ongoing building and site maintenance Emergency repairs Renovations and capital expenditures Over the years of ownership all properties need to be renovated in order to keep income as high as possible (paint, flooring, bathrooms, kitchens, etc.). Janitorial Common areas that need to be cleaned and / or cleaning when tenancy changes. Vacancy Every property will go through times when it is vacant. Save in advance. Research the vacancy rate in your area to budget accordingly. Mortgage payments Insurance Property and liability. Property tax Utilities Management For many hiring a management company is the way to go and can save headaches, time and possibly money on some expenses. Legal fees May be incurred if you have an issue with a tenant or if the property is owned inside a corporation. Accounting fees When researching a property for purchase, if it is not cash flow positive is it automatically a poor purchase? No, not necessarily. There could be several items that drive the price up and still make it a good buy. Such as: Present and future subdivision potential Extra land for expansion to create additional revenue A location close to city expansion or revitalization Do positive cash flow properties instantly make it an instant win and something you should buy. It definitely makes it attractive. However, there are other items that one should now look at. Considering the purchase of an income property. Lets have a chat.

What is a CAP Rate and why is it used when researching investment and income producing property? A CAP Rate (short for capitalization rate) is used to show the 1-year rate of return expected to receive on an income producing property. The formula used in calculating this rate is extremely simple and quick: Net Operating Income ... ------------------------------------------- = CAP RATE Property’s Current Market Value The net operating income is arrived at by taking the gross income of the property and subtracting all expenses, with the exception of principle and interest loan payments. Accordingly, the CAP Rate does not take loan payments into account. The CAP Rate also tells us the length of time to pay back your initial investment when purchasing a property. A 10% CAP Rate will pay back your investment in 10 years. Different types of income property will sell for various CAP Rates. The reason all comes down to risk. The riskier the property, the higher the CAP Rate, which results in a lower market price for the property. For Example. Consider two properties both with extremely similar attributes (location, size, age of building). However, one property has a national bank tenant and the other a brand-new restaurant, owner by an inexperienced couple. The bank offers little risk of not paying rent, where the restaurant runs a much greater risk. Accordingly, the bank property would sell for a lower CAP Rate. Higher CAP = Lower Market Price = Higher Risk Lower CAP = Higher Market Price = Lower Risk As with all investments the CAP Rate a property sells for is market driven. The more investors that there are looking for a property will drive the CAP Rate lower. While fewer buyers push the rate higher. History tells us that when guaranteed investment rates drop (i.e. bonds), investors look for alternative investments. In many cases the alternative investment is income producing property. This has resulted in property values increasing, as the number of new buyers drove the CAP Rates lower. There are several items that a CAP Rate does not tell us, and one must look at other details when purchasing income property. Some of the items it does not tell us are: Future income potential due to property value appreciation. If the property cash flows after debt re-payment. If there is any hidden income potential (low rent rates, additional development potential). If the net operating income is high as a result of ignoring repairs and maintenance. What it does provide, is a simple to use tool when quickly analyzing a property or comparing two or more similar properties. For many investors it is their first step when researching a property and deciding if it is worth further investigation. Interested in income property and what CAP Rate properties are currently selling at? Give us a call, we would be happy to chat with you about it.

Happy Canada Day True North Strong and Free.

FOR SALE (land & building only) 9360 Young Rd. Chilliwack, BC Great opportunity to own a part of downtown in time for the new development. This well located corner property is directly across from a large city parking lot and beautiful city park. The building has a newer roof, HVAC and awnings. Long term lease in place with a very established popular restaurant. ... LISTED AT: $889,000 Message me for more details.

Things have been extremely busy over at The Quarry. Only 3 homes remaining. Message for details.

Leasing 101 #9 What type of insurance do I need? This information is not meant to be an in-depth recommendation regarding all insurance coverage's you should have when leasing commercial property. You will want to chat with a trusted commercial insurance broker to obtain their professional opinions and recommendations. ... Many tenants believe that the only insurance coverage needed when leasing a space is for personal contents. Yes, this is coverage you should have. However, there are additional items that you will want coverage for. What may surprise you, is that in many cases the tenant is required to replace all tenant improvements in the case of a fire, flood, etc. As mentioned in a previous post, tenant improvements are not just the improvements that you completed, but rather all improvements that have been completed over time. Typically, this is everything within the main walls of the leased space (i.e. flooring, walls, plumbing, electric, heat/AC). Under the lease you may also be required to have the following coverage: General Liability Insurance Business Interruption Insurance Glass Insurance Make sure to carefully review your lease to be aware of all coverage's that are required (there may be more, or less then I have noted above). It would also be a good idea to send a copy of the lease to your insurance broker for them to review and provide their suggestions. If you have any questions about this or any other real estate matters, contact me at any time.

Calling builders. Great executive lots available in an established neighborhood on Little Mountain. Zoning will allow for an additional carriage home or garden home. Start building now and be ready to sell when the market picks up. More details at: https://www.littlemountainchilliwack.com/

Leasing 101 #8 What happens at the end of my term? Many may be surprised to hear that when a commercial lease expires the landlord is under no obligation to renew or, to allow the tenant to continue to occupy unless the lease has a renewal clause. ... Commercial leases are not governed in the same way as a residential tenancy. Under the residential tenancy act a landlord must have cause to evict a tenant. Under a commercial lease a landlord can have the tenant vacate upon expiry of the lease, for absolutely any reason and in fact does not need to provide a reason at all. If your lease allows for renewal it should state at what point in time you need to notify the landlord that you wish to renew. Ensure to not miss this date as the landlord is under no obligation to renew if you do. The lease rate for the renewal period may be determined in one of several ways. The most common are: Predetermined Rate: This is the quickest and easiest type of renewal as the rates were agreed upon when you originally signed the lease. Not many landlords will agree to this type of renewal as the market rate may be higher than the renewal rate. Current Market Rate: With a current market rate renewal, the landlord sets the new rate based on the market value at the time of renewal. The downside for the tenant is that should the landlord set a rate you believe is higher than market, you have no legal grounds to challenge and must accept or vacate. Current Market Rate with Arbitration Clause: The rate for renewal is based on prevailing fair market rates as agreed upon by the tenant and landlord. However, if the tenant and landlord are not able to agree on the market rate it would be determined by arbitration pursuant to the arbitration act. Timing is extremely important. As mentioned, if your lease has a renewal clause make sure to not miss the notice date. Also, some leases may state that arbitration can not be requested after a specific date. Have questions on this or any other real estate items. Contact me at any time.

Looking to buy a rental home? This home in Chilliwack BC, Cash Flows. Asking price: $699,999... Down payment: 25% Mortgage payment: $2,326.26* Strata fee: $90.00 (includes water/sewer, garbage) Property taxes: $270.97 /mo Potential rental income: $3,000/mo ($1,900 main home, $1,100 basement suite) Remaining cash flow: $312.77/mo (save for future repairs) If you are looking to buy your 1st or your 50th rental property lets discuss the process. Contact me at any time. (*on approved credit, 2.39% interest, 5 year term, 25 year amortization. Rates may change without notice)

Leasing 101 #7 How to Calculate the Monthly Lease Payment When looking for your businesses new home, you may notice that the cost of space is advertised in a couple different ways. Either a monthly amount or on a per square foot basis. To make things even more confusing is not knowing if this advertised amount is based on a Gross or Triple Net Lease (see Leasing 101 Gross Lease vs Triple Net Lease for definition).... The first step is discovering it the price is Gross or Net, and if Net what is the cost. You may be able to find this information within the ad or by calling the landlord or their agent. Once you have this info we can move on to the next step. If the advertised price and triple net amount (if it is not a gross lease) are provided as a monthly amount, your work is extremely easy. Add the two amounts together and you have your monthly lease payment. If the space is advertised on a per square foot basis the calculation is as follows: Price per square foot X Total number of square feet = Annual lease amount Annual lease amount / 12 = Monthly Lease Payment Example: You see a 1,750 square foot space advertised at $20.00 per square foot. The calculation would be: $20.00 X 1,750 = $35,000 Annually / 12 = $2,916.67 Per month If it is a triple net lease you would complete the same calculation to determine the monthly additional rent amount. Now just add the two monthly payments together and you have your total monthly payment. Remember. You may have monthly costs associated with the space that are not included in the Gross or Triple Net payment (ie utilities). Make sure to ask if there are any additional costs and read the lease carefully. GST. The lease payment will not include GST, and yes, it will be payable. Talk to your accountant as it is likely you will receive an income tax credit when paying the GST (assuming you have a GST number). If you have any questions on this or any other real estate items, contact me at any time.

FOR LEASE 1,155 SqFt of second floor office space on trendy Mill St. in Downtown Chilliwack. This space offers an attractive and professional feel with six private offices, storage area and lunchroom. Close proximity to many shops, restaurants, entertainment and more.... Message me for more info or to arrange a viewing.

Leasing 101 #6 Tenant and Landlord Responsibilities What repairs and maintenance are the tenant and landlord responsible for?... This is one of the most difficult questions to answer, as it varies lease to lease almost more then any other item. Therefore, my answer is based on what I see as a norm and may not be what your lease dictates. The simplest explanation is that a tenant is responsible for the repairs and maintenance of all tenant improvements. These are not just the improvements that you completed, but rather the tenant improvements that have ever been completed. The next obvious question is then: What improvements have been completed? Envision a building under construction with the exterior walls, concrete floor, roof, main plumbing lines and electrical to the panel completed. Now envision all the improvements that go into the space after this. These are the improvements that you may be responsible for. Why is this? Chances are, the first ever tenant paid for these improvements, or negotiated to have these them completed. Therefore, they are tenant improvements that are the responsibility of the tenant. Another way of looking at it, is that the landlord is responsible to repair the building envelope. The Homeowner Protection Office of BC defines the building envelope as: The building envelope includes all the building components that separate the indoors from the outdoors. Building envelopes include the exterior walls, foundations, roof, windows and doors. From my experience window’s, doors and heating, ventilation / air-conditioning units (HVAC) could be either a landlord or tenant responsibility. Further, as mentioned main plumbing lines to the building and electrical to the panel are typically a landlord’s responsibility. In a round about way the tenant may also be responsible for the repairs and maintenance of common areas (ie. landscaping, painting, janitorial). The landlord is probably responsible to have this work completed. However, it may get charged back to you as part of triple net. Ensure to review your lease carefully to fully understand what is and is not your responsibility. The above is based on my experience with the leases I have dealt with. However, it is in no way set in stone. Have questions regarding this or any other real estate related items. Contact me any time.

Better late then never. With one game, winner take all left in the playoff series our season was ended. However, the league just awarded us with the banner, as we had the highest winning percentage. It was a year of coaching that was not unlike most. Full of ups and downs. But, this group of kids improved a tonne over the year. Being the youngest team in the division we were not given much of a chance and understandably there were some rough patches. However, this group of kids didn't give up. At times when they were probably ticked at me for pushing in practices they kept going. It all paid off in the end and we surprised a lot of teams. Couldn't be prouder. Job well done boys.

Considering the purchase of an investment property? This brand new home in Chilliwack, Cash Flows. Asking price: $769,000 Down payment: 25%... Mortgage payment: $2,615* Estimated Property taxes: $365 /mo Potential rental income: $3,200/mo ($2,000 main home, $1200 basement suite) Remaining cash flow: $220/mo (save for future repairs) There is more to buying investment property then just positive cash flow. If this is something you have been thinking about, lets chat. I would be happy to walk you though it. (*on approved credit, 2.59% interest, 5 year term, 25 year amortization. Rates may change without notice)