Information on Rates for Commission Advances

“How Much Does It Cost For A Commission Advance?”

This is the most common question we receive. Guess what our answer is? “80 cents per $1000 per day!”

At that point we’re usually told that Company #2 has quoted them a less expensive rate.

Are they charging less? Or are they charging more?

RealCash charges a flat rate of 80 cents/day/$1000. No Administration Charges, No Hold Back Fees, No Hidden Costs. Why? Because it’s easy and simple!

Here’s an example:

RealCash Bancorp Inc.:
$3000 Purchase Amount – 60+10days
less 80 cents/day/$1000 $168.00
Net Advance $2832.00

Agent repays $3000 after 69 days and receives a $2.40 refund.

Total cost to Agent is $165.60.

Total Advance is $2832.00

Company #2:
$3000 Purchase Amount – 60 days
less 63 cents/day/$1000 $113.40
less admin fee $29.50
less HoldBack (2.5%) $75.00
Net Advance $2782.10

Agent repays $3000 after 69 days and receives a $33.75 refund.

Total cost to Agent is $184.15

Total Advance is $2782.10

HoldBack Fee – Everyone understands that an Agent, let alone a commission advance company, never receives their commission cheque on the day of closing. Obviously Company #2 knows this. Their rate for the days following the closing date jump from 63 cents/day to $1.25/day! That’s a 98% increase. RealCash simply creates a contract that runs 10 days past the closing date with no rate increase. Nothing is hidden.

RealCash’s contracts are straightforward and simple to understand. Our competitors may claim to charge less but as you can see from the above example, it simply is not so.

So, the next time you call Company #2, please don’t just listen to what they are saying because as in most cases, it is what they are not telling you that matters.

Most companies use the line, “Why wait till closing to receive your commission?” Obviously we agree with that philosophy but we add the caveat, “Why wait till closing to find out how much your commission advance really cost you?”

If you have any questions or comments, please feel free to call me at 416.444.7790 and 1.800.265.2694.

Regards,
Karim Kanji
RealCash

KPMG Weekly Newsletter – For the Week Ending March 11th 2007!

March 12, 2007

The following information was obtained from newspaper articles appearing
in the Globe and Mail and the National Post for the week ending
March 11, 2007

Calgary-based Huntingdon REIT will purchase three industrial properties in southern and western Alberta for $19.6-million. The properties, which total 94,960 square feet across six buildings, will be leased back to the seller, Winnipeg-based Leader Energy Services Ltd., for about $2.1-million a year.
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Sunrise Senior Living REIT has been told by an Ontario court judge to stop takeover negotiations with Health Care Property Investors Inc. The court ruled that Sunrise REIT must enforce a standstill agreement signed by HCP on January 14, 2007. In mid-February, HCP said it was prepared to make an offer of $1.4-billion, or as much as $18 a unit. A vote by Sunrise shareholders on Ventas Inc.’s offer of $1.1-billion, or $15 a unit, has been rescheduled for March 30.
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Royal Host REIT reported that annual profit rose 500% to $14.3-million. Profit from continuing operations climbed 155% to $4.7-million and the REIT booked a profit of $8.8-million on the Royal Private Residence Club in Kelowna. Annual revenue increased 3.1% to $144.3-million. Royal Host doubled its cash available for distribution during 2006 to $1.05 a unit, while boosting the payout twice during the year. The distribution was increased again in February to an annual payout of 66 cents a unit.
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Canada’s federal government plans to proceed with the sale of nine buildings in six cities, with the goal of leasing back the space from the purchaser. The buildings that will be put up for sale include 401 Burrard and the Sinclair Centre in Vancouver, the Harry Hays building in Calgary, Canada Place in Edmonton, the Joseph Sheppard Building in Toronto, the Thomas D’Arcy McGee Building and the Skyline Complex in Ottawa, and 305 René Lévesque W. and 4225 Dorchester W. in Montreal.
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MI Developments Inc. reported fourth-quarter profit of US$28.5-million, or US59 cents a share, compared with a loss of US$6.1-million, or a loss of US13 cents, a year ago. The consolidated results included Magna Entertainment Corp.’s added US$12.2-million in income from discontinued operations and a US$7.6-million loss on continuing operations. MI’s core real estate business earned a profit of US$23.3-million, up from US$19-million a year earlier. Real estate revenue rose to US$46.6-million from US$40.3-million. MI’s profit for the year climbed to US$59.9-million, or US$1.24 a share, from US$6.6-million, or US14 cents, in 2005 when MEC contributed about US$63-million in losses.
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Churchill Downs Inc. will purchase a 50% interest in Magna Entertainment Corp.’s Horse Racing TV network. The two firms also have created a joint venture, TrackNet Media Group LLC, which will offer each company’s horseracing content across various distribution and gambling networks.
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Magna Entertainment Corp. reported a loss of US$85.2-million, or US81 cents a share, in 2006, compared with a loss of US$102-million, or US98 cents, in 2005. Revenue increased to US$702.1-million from US$604.4-million.
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Kingswood Capital Corp. is developing the NorthWoods project in North Vancouver, which will have a total of 380,000 square feet of industrial space when fully built in 2009. The NorthWoods development is leasing space for $12.50 to $13.50 a square foot, compared with maximum rates of about $8 a square foot in Burnaby. An additional 135,000 square feet of office and retail space are proposed for two separate parcels. The 9.8-hectare NorthWoods site was purchased several years ago by bcIMC Realty Corp., which owns the NorthWoods Business Park.
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Toronto hotelier Steve Gupta’s Easton’s Group of Companies plans to add six more hotels to its holdings in 2008. Easton’s is currently working on a Hilton Garden Inn in downtown Toronto, near the 256-suite Marriott.
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According to Colliers International, 405,000 square feet of industrial space has been added to the North Vancouver market in the past two years, and all but 25,000 square feet of that has been absorbed. The current industrial vacancy rate is 2.3%, compared with 3% in 1999.
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According to Statistics Canada, the total value of Canadian building permits rose 11.3% to a record high of $6.3-billion in January from December. The value of nonresidential permits climbed 19.3% to a record $2.6-billion, led by gains in industrial and institutional permits in Ontario. Permits for single-family homes set a new record for January of $2.4-billion, on a seasonally adjusted basis. Permits for multifamily homes jumped 27.4% from December.
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According to Statistics Canada, investment in residential construction projects rose 8.5% to a record $79.8-billion in 2006 from 2005. Investment in new housing climbed 9.2% to $40.7-billion, renovation spending increased 8.7% to $32-billion and acquisitions were up 4.1% to $7.1-billion.
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According to Statistics Canada, Canada’s new housing price index had a 10.1% annual increase in January, compared with a 10.7% year over year gain in December. Alberta reported a 40.6% annual increase in January, compared with a 42% gain in December.
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According to Canada Mortgage and Housing Corp., national housing starts fell 21% to 196,200 units in February from 248,500 units in January, on a seasonally adjusted annual basis. Housing starts dropped 32.8% in Ontario, 25.4% in the Prairies, 15.2% in Quebec and 18.6% in British Columbia. Housing starts were down 5.2% in rural and urban areas in the first two months of 2007, compared with January and February in 2006.
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According to Canada Mortgage and Housing Corp., new-home starts in Ontario fell 36% to 51,500 units in February from 76,700 a year earlier. In Toronto, preliminary figures indicate 23,000 starts in February, compared with 39,700 in January. Starts for the first two months of 2007 were down 12% from the same period in 2006.
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According to the Toronto Real Estate Board, sales through the MLS increased to 6,772 homes in February from 6,756 a year earlier. Sales for the first two months of 2007 rose 5% to 11,855 units from 11,270 units in the same period in 2006. The average sale price climbed 4% to $368,687 in 2006. There were 11,880 listings added in February, bringing the total number of active listings to 19,359. The average number of days a home spent on the market was 35.
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According to the Realtors’ Association of Hamilton-Burlington, housing sales fell 10% to 1,071 units in February from a year earlier and sales are down 6% year-to-date. The average price of a single-family home rose 12% to $289,544 from February, 2006.
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Blackstone Group LP is purchasing the owner of Madame Tussauds waxworks museums in a US$1.9-billion transaction that will create the world’s second-largest theme park group. The merged entity will combine Tussauds, Sea Life aquariums, the London Eye Ferris wheel and theme parks in Britain operated by the Tussauds group with Blackstone-owned Legoland and Gardaland theme parks. Dubai International Capital LLC, which purchased Tussauds two years ago, will keep a 20% stake in the merged group.
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Earvin “Magic” Johnson and partner Canyon Capital Realty Advisors will provide US$12.4-million in financing for 130 condominiums in the Greenpoint neighbourhood of Brooklyn. Green Street Development LLC is building the six-story project and the Bank of New York is providing a US$41-million senior loan.

According to the U.S.-based National Association of Realtors, pending sales of existing homes dropped 4.1% in February.
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Novastar Financial Inc. and H&R Block Inc.’s Option One will no longer be making certain loans that finance 100% of a home’s cost. Fremont General Corp. has stopped making subprime loans and exited from the business under pressure from regulators.
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According to the Mortgage Bankers Association, subprime mortgages made up about a fifth of all new mortgages in the U.S. in 2006. About 2% of subprime mortgages made in 2006 were more than 60 days late after five months, almost twice the rate for mortgages made in 2005.
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According to the U.S. Federal Reserve, the share of mortgages on which payments were at least 30 days late increased to 2.11% in the fourth quarter from 1.72% in the previous three months. Mortgage debt climbed by US$4.7-trillion from the end of 2000 through the third quarter of 2006.
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According to Credit Sights Inc., borrowers defaulting on mortgages could result in an estimated 533,000 additional homes coming onto the U.S. market. In January, there was an unsold inventory of 4.09 million homes in the U.S.
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Moor Park Real Estate will purchase 72 hotels in Germany and 19 in the Netherlands from Accor SA for €863-million ($1.33-billion). Accor will continue to operate the properties under 12-year variable rent leases and use the sale proceeds to reduce its debt by €612-million.
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Accor SA reported that net income rose 51% to €501-million in 2006 from €333-million in 2005. Annual revenue reached €7.6-billion last year. Accor plans asset sales worth €1.9-billion ($2.95-billion) by the end of 2008. The company also plans to buy back shares worth €700-million and return an additional €320-million to investor through a €1.50-a-share special dividend. Accor intends to open 30,000 more rooms by the end of 2007, following the addition of 22,000 rooms in 2006.
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China’s parliament has unveiled legislation that would give legal protection to private property and close a tax gap between local and foreign companies. The proposed property law would let individuals own and sell assets such as land-use rights for as long as 70 years.
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The Funniest Pictures on MLS – Saskatoon Edition!

Holy Crap! I almost crapped my pants! Okay, so I don’t know what the language etiquette is for blogs. However, after you take a look at the following blog you are literally gonna laugh your mascara off (as one agent said) or do a number one. Anyways, I thought I’d share the following with you. It comes courtesy of Norm Fisher’s Saskatoon Real Estate Resource Centre Blog.

Click HERE and start laughing!

Friday March 9, 2007″

Housing Starts Moving South… Globe and Mail and CBC report on this CMHC Report.

However, Canadian Housing Sector continues to buck U.S. Trend. Read what The Globe and Mail and Toronto Star have to say about this.

CMHC now making it EASIER for Self-Employed Home Buyers to realize goal of Home Ownership.

Royal and BMO assist Housing Boom by lowering mortgage rates!

Cross Country Canada Report:

  1. Ontario and Ontario Part Deux
  2. Greater Montreal
  3. Toronto
  4. Saskatoon
  5. Calgary
  6. Canadian Snap-Shot

KPMG Weekly Newsletter – For the Week Ending March 4th 2007!

March 5, 2007

The following information was obtained from newspaper articles appearing
in the Globe and Mail and the National Post for the week ending March 4, 2007
The Canada Pension Plan Investment Board has committed US$300-million to a joint venture with New York-based Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF) that will target underperforming office properties in improving markets. TIAA-CREF will invest US$312-million and own 51% of the venture. The CPP Investment Board has also committed US$200-million to a fund that owns 13 prime office, retail and industrial properties across the U.S., also in partnership with TIAA-CREF.
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Legacy Hotels REIT’s board of trustees has formed a special committee to review strategic alternatives that could include the sale of the REIT.
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The OMERS real estate portfolio had an investment return of 26.2% in 2006. Operating income from its property portfolio dropped to $350-million from $392-million, but total investment income from real estate increased to $1.02-billion from $790-million. Excluding debt, OMERS valued its real estate assets at $4.9-billion at year-end.
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Toronto-based Asian Coast Development Ltd., U.S. developer Fontainebleau Resorts and Las Vegas-based casino architect Paul Steelman are proposing to build a US$4-billion resort and casino in Vietnam. The Ho Tram project would be developed on a remote stretch of beach and forest in Xuyen Moc, Ba Ria Vung Tau province, two hours east of Ho Chi Minh City. The project awaits approval by the Vietnamese government.
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According to the new Canadian Property Index report, total returns for commercial real estate investments reached an average of 18.6% in 2006. Nationally, returns were 21.4% for office properties, 18.2% for industrial real estate, 16.5% for retail and 14.9% for multiresidential buildings. Total returns for all classes of real estate hit 35.2% in Edmonton, led by a 56.4% return for office properties. Returns for all classes of real estate rose to 30.4% in Calgary, led by a 34.7% return for office properties.
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According to Colliers International Hotels, a record $3-billion in hotel properties was sold in Canada, up 73% from 2005.
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According to the Canadian Real Estate Association, housing sales increased 4.2% to 43,179 units in January from December, on a seasonally adjusted basis. Sales were up 7.8% from a year earlier. The average price of a home rose 10.1% to $282,844 from a year earlier. Prices in Toronto were up 6% from a year earlier, while gains were higher in Alberta and Vancouver.
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According to Statistics Canada, residential construction is expected to grow by 1.4% in 2007 to $81-billion, compared with 8.5% growth in 2006.
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According to CMHC, low-rise housing starts in Toronto rose about 30% to nearly 2,100 units in January from 2006. Condo starts fell by nearly 47% to under 400 units from more than 700 a year ago. In 2006, condominium apartment starts in Peel Region soared more than 150% to about 2,600 units from a year earlier. Low-rise starts were down 27% to 5,800 units from nearly 8,000 units in 2005.
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According to the Ontario Home Builders’ Association, there were 73,417 housing starts in the province in 2006, down from 2003 and 2004, but above the 10-year average. The value of new housing, residential renovations and other related expenditures totalled $33.3-billion in 2006. The new housing and renovation sector accounted for 313,000 jobs in Ontario.
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Station Casinos Inc. has reportedly accepted a revised, management-led buyout offer worth about US$5.5-billion from a group led by the company’s founding family and Colony Capital LLC. The company’s board reportedly voted to enter into a definitive agreement with Fertitta Colony Partners LLC, which will pay $90 a share to acquire Station Casinos and take it private.
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Hilton Hotels Corp. will sell its Scandic hotel chain to the Swedish buyout firm EQT Partners AB for €833-million ($1.29-billion).
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Host Hotels & Resorts Inc. has sold three Marriott hotels for $214-million.
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Hovnanian Enterprises Inc. reported that home contracts fell 23% and its cancellation rate was 36% in its fiscal first quarter.
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Three office buildings are scheduled to open at the World Trade Center site in Manhattan at about the same time as the 90-storey Freedom Tower. The US$2.88-billion, 2.6-million square- foot office tower is scheduled to open in 2012. The Freedom Tower has tenant commitments from federal and state government agencies for about 40% of the building at US$59 a square foot. The total amount of new Manhattan office space coming on the market from 2008 to 2013 will be at least 15.8 million square feet.
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According to the U.S. Commerce Department, sales of new single family homes in the U.S. dropped 16.6% to 937,000 units in January from 1.123 million in December. The supply of new homes increased to 6.8 months in January from 5.7 months in December. The number of homes for sale at the end of January fell to 536,000 from 537,000 in December. The median home price fell 2.1% to US$239,800 in January from US$244,900 in 2006. Residential construction was down at an annual 19.1% rate in the fourth quarter.
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According to the S&P/Case-Shiller index, U.S. home prices dropped 0.7% in the fourth quarter of 2006 from the previous quarter, but were up 0.4% in the past year. Prices in the top 10 metro areas dropped 0.8% in December and were unchanged for the year. Prices in the top 20 metro areas were down 0.7% in December and were up 0.5% in the past year.
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According to Goldman Sachs, U.S. home prices are expected to fall by about 3% in 2007.
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According to the U.S. National Association of Realtors, sales of existing homes were up 3% in January from December, but fell 4.3% from a year earlier.
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According to Moody’s Economy.com, exotic mortgages represent one-third of the US$1.6-trillion in home mortgages lent in 2006. Exotic mortgages include subprimes, and prime borrowers taking negative amortization loans and “alternative A” loans.
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According to Inside Mortgage Finance, new subprime loans granted in 2006 totalled about US$605-billion, or more than 20% of the total mortgage market, compared with US$120- billion, or about 5% in 2001.
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According to the Center for Responsible Lending, an estimated 2.2 million subprime loans, or about 15%, originated between 1998 and the third quarter of 2006 will end in foreclosure. That figure includes about 488,000 foreclosures already recorded.
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According to the University of Pennsylvania’s Wharton School of Business, nearly two thirds of all home loans in the U.S. since 2003 have been aggressive. Nearly 13% of subprime loans are now in default, compared with 1.4% for all mortgages.
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According to the National Development and Reform Commission, housing prices in 70 major Chinese cities rose 5.6% in January from a year earlier and 0.6% from December. Prices increased 10.2% in Shenzhen and 9.9% in Beijing. New housing prices climbed 6.1% in January from a year earlier and 0.2% from December, while existing home prices were up 5.3% from a year ago and 1.1% from December. Prices for non-residential commercial property were 4.5% higher than a year ago and increased 0.1% from December.
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