Mark and Terry, Calgary investors
Mark and Terry have been investing in Calgary since 2000 and have been involved in several different real estate ventures including rentals, renovations and creative buying and selling. We are a strong team and we work well together.
We are sophisticated investors with an abundance of experience, partnered with an experienced network team to ensure your investment is as profitable as possible. We work with professionals who are specialists rather than generalists. We believe it is vital to work with individuals who have an intimate knowledge of our target market. In addition, we work with individuals who both understand and share our vision for creating passive income and growth opportunity through real estate.
Terry has the freedom to spend her time on management of the investments and is able to drop everything to attend to any emergency. Depending on the situation, she will either manage the property personally or utilize one of our strategic partners. Either way, our properties are actively managed by capable individuals and we continue to ensure equity building tenants occupy our properties, commanding above average rents.
We are honest and ethical and most of all we care that our partners are happy with the results of their investments, and our tenants (our business customers) are happy with their home.
Mark and Terry Kruse
- Ten years RE Investment experience
- 20+ years new property marketing experience
- Ten years Home renovation experience
- Multiple large and small renovation experience
- Currently experiencing cash flow of over $3000 per month on one furnished duplex ($60,000 per year minus expenses)
Our Business Model
- Positive Cash Flow: Rent minus all operating expenses (e.g., property management fees, repairs, utilities, property tax, etc.) is still positive
- Mortgage Pay Down: This is also paid for by the rental income
- Value Increase through: Improvements / development
- Impeccable property management. Higher rents and decreased expenses
- Time / inflation / appreciation
Active REIN™ Members
We are active members of REIN™ and meet on a regular basis to uncover and discuss the latest strategies, systems, and trends in the Canadian real estate marketplace, often tapping into information sources not available to the general public. This gives us a unique advantage in the marketplace.
Bio of Terry Kruse
Terry Kruse is an award-winning graphic designer. She began operating under Perceptions Design in 1986. This targeted experience marketing new home and condo developments has dovetailed perfectly into Mark and Terry’s growing real estate investments.
In 2004, Terry and Mark bought a 15-year-old log home between Calgary and Okotoks. The next 2 years were spent renovating the home with Terry acting as the designer and general contractor. The couple completely renovated the 3,200 sq ft home. This included adding a 3 car garage as well as a solar thermal heating system.
The Calgary Herald did a 6 part series on the home and its eco-friendly renovation.
This home was bought as a personal residence but the extensive renovation and financing details brought the couple a wealth of experience, enabling them to transition easily to investment real estate.
Presently Terry takes care of the business and property management for Renewed Homes.
The end of 2010 brought an addition to Terry’s focus as Mark and Terry have long had a passion for renewable energy and eco-friendly homes. September and October were spent touring through Western Canada and the USA, where the couple interviewed over 40 owners of green and eco homes. The resulting interviews are to be featured in a book on the subject. www.yourECOfriend.com has more information on this subject.
Bio of Mark Kruse
Mark Kruse graduated with a degree in Electrical Engineering in 1991, earning his Professional Engineer designation 3 years later. His sense of ethics, responsibility and fair play serve him well in his professional and private life.
Mark has worked in various positions connected to his education. He progressed through team and project lead positions managing both technology and people.
Presently Mark is responsible for 16 people in his role as Manager, IS Projects Portfolio and Business Solutions. Mark’s strong sense of organization, team building and capital budget management fill out the strengths in Mark and Terry’s investment team. Mark’s project management ability was an important part of the success of the log home renovation. His attention to detail and budget was immensely important in the overall log home project and valuable in our present real estate endeavours.
Mark and Terry: A Very Successful Team
We have seen success with numerous real estate ventures over the last few years. This includes renovations, rentals and quick turn properties.
Our plan going forward is to purchase 17 or more holding properties over the next few years. The primary focus is single family and small multi-family buildings in good Calgary neighbourhoods.
One of our great strengths has always been marketing. This strength has allowed us to buy properties direct from homeowners while helping homeowners get out of a bad situation. This creates a win/win for both parties. This is a great method for buying and keep the property as a rental, for a long-term hold.
Long-Term Wealth Creation
Our Real Estate investing is based on the following fundamental principles:
- Buying value properties in neighbourhoods of better than average increasing value. We acquire only the right properties in the right locations.
- Buying properties with multiple exit strategies to maximize our liquidity.
- Buying only when the price and our detailed Due Diligence checklists fit our system. We always underestimate performance and over-estimate costs. We purchase only if this worst case scenario still fits our system.
- Improving the properties to receive above average rents. This helps our homes to rent and stay rented when the vacancy rate is higher. The renovated rental must be of a quality that we would be happy to live in ourselves.
- Paying close attention to the economic fundamentals that affect real estate in our area.
- Win-Win Partnerships. If a situation does not work for both sides, we won’t do it. We specialize in 50/50 Joint Venture (JV) partnerships. We only make money if our partners make money. We also lose if you lose. Therefore, we will use our perseverance, experience and extensive renovation expertise to make each investment a success.
The investor’s initial investment is returned before the profits are split between joint venture partners.
Invest with people who directly partner with you – not a fund manager.
The end of 2008 marked serious problems in the world financial market. Throughout this mess, investment fund managers pulled in fantastic salaries whether they made or lost money for their investors.
We do not receive a salary when we work with investors. Our success is only achieved only when our investors succeed. When you invest with us you are investing with a Calgary couple who oversees all elements of the investment including property management.
Present Success
Below is a great example of a fantastic long-term hold property in Richmond Park. An area in transition, close to downtown Calgary.
Richmond Park, Possession February 2008
The property consists of 2 sides of an attached duplex. The left side is a character bungalow with 2 bedrooms, 1 bathroom up and 2 bedrooms down, each with a 4 piece ensuite (total of 4 bedrooms, 3 full baths). This side was also previously suited and enjoys a front and back lower entrance along with an upper entrance. At this time the home is not divided but we have a summer kitchen downstairs (no stove).
The right side is a bi-level with 3 bedrooms and a 4 piece bathroom on the lower level and includes a 2 piece bathroom upstairs.
The duplex also includes a heated 4 car garage, rented on possession for $500 per month.
This south-west home is located about 20 blocks from downtown Calgary and is on a desirable street with $1 million + homes. The home is located in an area of gentrification and sitting on 2 extra-large R2 lots totalling 56 by 160 foot (the average R2 lot is 25 x 120 ft). Eventually, when we decide to exit, we can sell to a developer, investor or homeowner.
These 2 sides of a duplex were on the market for several months and the investment was overlooked by many, prior to our interest. This allowed us to buy the property at $50k below asking (over 100k from the original listing price). With our renovation experience we were able to see past the deficiencies and turn the home into an above average rental home. We did extensive improvements to the property on possession and presently rent both sides furnished for rents that far exceed other rental properties.
A furnished rental usually rents for a shorter periods of time. We made a decision to rent for a minimum of 6 months, refusing anything less. This enabled us to rent one side to a company that is expected to have workers in the home for at least 2 more years. The other side – 4 bedrooms – is rented for a minimum of one year to adults that moved from PEI. It was easier for them to move into a furnished home than to transport their furniture.
