REDEV News

Issue: June 4, 2008

Greetings!

The summer holiday season is just around the corner and I would like to wish everyone a fun summer. Ranchlands Village Phase 1 is getting close to being sold out so there is still ample time to participate. Simply call your representative and book an appointment.

Regards,

Howard Manley
Senior Vice President
REDEV Properties
Ph (403)212-1953
howardmanley@shaw.ca

Radio Show & Seminar about REDEV's REIG Program

Listen in to Learn About REDEV's Ranchlands Village REIG

Van Leeuwen For those of you who are wanting more information about REDEV Properties latest Real Estate Income Gain program (REIG) you can listen to a live radio program online this Saturday June 7th at 3 PM Mountain Daylight Time (MDT). Go to http://qr77.com/index.aspx and click the "Listen Live" button in the CHQR banner and you will be able to listen to an hour long discussion of REDEV Properties REIG program. Howard Manley, Senior Vice President of REDEV Properties will be on the show with Peter Watts for an informative discussion. For those of you in the Calgary area you can listen to this show live at AM 770 QR77.
Also for those in the Calgary area we will be having a free informational seminar at the Carriage House Inn, 9030 Macleod Trail South, Calgary, Alberta on Tuesday June 10th at 7:30 p.m.. For those wishing to attend you can register online at http://redevgroup.com/seminars.html or by calling 1-866-668-7344.

Insight From The Experts

people 1 In our December 11th 2007 newsletter we did a review of the book *"Why We Want You to be Rich", by Donald Trump and Robert Kiyosaki (you can read the article at our Newsletter archive at http://redevgroup.com/newsletter.html). In their book they share their analysis of our economy and some steps we all can take to be able to prosper. In the chapter "Why Do You Invest In Real Estate?" they point out a number of advantages to real estate investing. In our March 11, 2008 newsletter we looked at the first advantage they mention, Cash Flow. In this issue we will look at the next advantage they mentioned - Leverage. Here is a quote from the book about this advantage.

"In addition to control, real estate offers many other advantages. If a piece of real estate is purchased at the right price, is financed well, is in a good area and is well managed - then some of the advantages of real estate are the following:
2. Leverage: Bankers will line up to lend you money for investing in property. Ask your banker if he or she will lend you money to buy mutual funds.."

   First lets look at the definition for leverage as found at dictionary.com: The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.

   How does leverage help you? Let's examine a hypothetical example that illustrates what can happen:

XYZ Retail Building
Valued at $1,000,000
Appreciates at 4% per year.
This property is also rented out and returns 5% of the value of the property to the owner after taxes and all expenses.

Example #1, the investor paid cash for this property and at the end of year 1 his property would be worth $1,040,000 because it appreciated 4% leaving him with an increase in equity of $40,000. the investor would have also received $50,000 cash flow generated from the rental income or 5%.

Example #2, instead of paying the full $1,000,000 in cash, the investor decided to only pay $500,000 cash and get a bank loan for $500,000. At the end of year 1 his property would be worth $1,040,000 because it appreciated 4% leaving him an increase in equity of $40,000. However, since he only put $500,000 down that $40,000 increase in equity is actually an increase of 8% on his $500,000 investment, not the 4% he would have received in example #1. He would have also received the $50,000 cash flow from the rental income (less finance charges) so his return from this would be closer to 10% on his investment than the 5% he would have received in example #1.

   As you can see in this example, leveraging this property almost doubled the rate of return on the investment.
   REDEV Properties incorporates this advantage into every Real Estate Income Gain (REIG) project that we do. All of our REIG projects are leveraged with bank mortgages. Our current project, Ranchlands Village is a $31,500,000 project and it has a mortgage of just over 50% - $15,825,000. As in the illustration above, this maximized investors return on their investment.

*Why We Want You To Be Rich - Donald Trump & Robert T. Kiyosaki
Copyright©2006 by Donald J. Trump and Robert T. Kiyosaki.
Published by Rich Publishing, LLC.

REDEV Properties

4620 Manilla Road S.E. 480 University Ave., Suite 1600

Calgary, AB, Canada, T2G 4B7 Toronto, ON, Canada, M5G 1V6

Ph: (403)212-1953 Ph:(416)460-7779

Fax: (403)770-8537 Fax: (416)352-7591

Toll Free: 1-866-668-7344 Ontario Toll Free: 1-888-668-7344

www.redevgroup.com

Toll Free 1-866-668-7344

In This Issue

Upcoming Radio Show & Seminar

Insight From The Experts

Ranchlands 1

Featured Property

Ranchlands Village Shopping Centre

REIG Highlights

Strong demand for commercial Real Estate in Calgary market
Excellent location in the dominant commercial area of NW Calgary
Retail vacancy in NW Calgary only 0.4%
Office vacancy rate in NW Calgary only 1.4%
According to Conference Board of Canada, Calgary and Edmonton are "in a league of their own" as they lead growth in Canada for 2008
Minimum investment $25,000.
Projected average annual return after tax 14.25%
Receive a tax deduction for 8
Receive capital appreciation on the sale of the property

Rockwood Square

Featured Investment

REDEV's

RRSP Eligible REIG Program

Use your RRSP investments to profit from the lucrative commerical real estate market

4.5% per annum return within your RRSP.
Majority of growth is paid into share value - cash flow, equity growth and capital appreciation and paid to you outside the RRSP via tax advantaged dividends.
Income splitting opportunites on portion paid outside RRSP.
Secured by the commercial real estate.