Flipping Properties is Risky. Here’s Why!

Podcast Episode 113:

“So, You Want To Be A ‘Flipper.’”

There is a whole section of the real estate investment world known as ‘flipping.’ Basically, flipping is when an investor gets control of a property by signing a purchase contract, but rapidly sells it to someone else for a profit. Don R. Campbell of Real Estate Investment Network (REIN) fame has long cautioned against the most common form of flipping, which is to invest in condominium pre-sales. This is a Tale about a client of mine who got caught trying to flip a bunch of properties

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If Disaster Strikes, Will Your Property Insurance Coverage be Enough?

Hands protecting house representing property insurance

Podcast Episode 112:

“Insurance Realities.”

This is a Tale of woe about property insurance, including some ideas about how to make sure you have enough coverage. After heavy rains in Edmonton, a bunch of my clients had flooded basements. Not surprisingly, many of them couldn’t make insurance claims to cover the damage. Why, you ask? Because insurance policies are intricate legal contracts, and insurance companies won’t pay unless your problem is covered exactly by the terms and conditions…

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Don’t Lose Time and Money from Outdated Real Estate Documents!

wooden house stacks of coins in background

Podcast Episode 111:

“Keep Your Joint Venture Up-to-Date.”

In real estate, as in all facets of life, things change. A detailed contract or written agreement can protect your investments, but you’re still vulnerable if you don’t follow the terms exactly. A client of mine organized a joint venture with 15 investors to buy an apartment building in Alberta. They used a written Joint Venture to structure the deal, but later changed some aspects with only verbal agreement. This Tale is about what happened when one of the investors passed away and lawyers for the deceased’s estate began insisting on the original terms of the Joint Venture.

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What to Do When Seller Doesn’t Have Leases for Tenants

Podcast Episode 110:

“Get the Details.”

A client of mine found a four-plex in Alberta with a motivated seller, but soon discovered that he would have to deal with problems caused by the seller’s inexperience. The location was good, with a tenant profile that fit the type of people that my client liked to rent to. And, the price was very good. Listen to the podcast or read on to learn about documents you can use to protect your interests when buying from sellers like this who haven’t been very good landlords.

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Protect Yourself with Power of Attorney

Power of Attorney, Powerful Tool For Real Estate Investors

The Power of Attorney is a wonderful document, and especially useful in creative real estate transactions.  The owner of the piece of property (the grantor) appoints you (the grantee) his attorney (the person who can do things regarding the property).  The Power of Attorney can be revocable or irrevocable, general or specific for a fixed period of time, or without that limitation. In other words, the Power of Attorney is a very flexible document.
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Title Insurance vs. Real Property Report

Should You Accept Title Insurance Instead of a Real Property Report?

Following up on their previous two videos (1 and 2), Barry and Keith compare title insurance and real property reports in Alberta real estate. Which should you choose? For the buyer, it often depends on what you wants to do with the property after purchase. Watch the video to get Barry’s explanation!

 

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Predatory Rent-to-Own? That Could Net You a $250,000 Fine!

This is what gives Rent-to-Own (a.k.a. Lease-Options) a bad name.

The British Columbia real estate regulator issued a rare ‘Emergency Suspension’ to a BC realtor and his company. Briefly, the realtor allegedly looked for homeowners in foreclosure. Then he would buy the properties from them at less than market value and rent them back under a Rent-to-Own scheme. The homeowners were always unrepresented by realtors or lawyers.

Here’s the kicker; their rent payments were double their mortgage payments. Of course, if the homeowners could not make the mortgage payment, they could never consistently make a rent payment that was double the mortgage payment! Once they couldn’t make a payment, the realtor would evict them.

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Real Property Reports in Alberta

What’s a Land Survey and Why Do You Need One to Sell your Property?

Barry continues his conversation with Century 21 realtor Keith Faria. This time they’re talking about Real Property Reports (RPR), which are two-dimensional drawings created by professional surveyors.

In Alberta, the standard real estate purchase contract requires sellers to provide a current RPR and proof of municipal compliance. Watch the video to get an explanation of what these terms mean and why they’re important.

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