Joint Ventures, RRSP Mortgages, Due Diligence, & More!

Podcast Episode 92:
A Few Quick Tales.”

Here’s some great stories about people buying and selling real estate in Alberta. These five quick Tales from the Trenches are short, but they show a wide range of different issues, problems, and successes.

In a joint venture, it’s always nice when a more experienced investor can help out someone who’s just getting started, which is the subject of the first Tale. The second deals with rules surrounding RRSP mortgages. Did you know that the money needs to be at arm’s length from the person whose RRSP it is? The third Tale is about Alberta Health’s Minimum Housing & Health  Standards. I’d recommend anyone looking to buy real estate in Alberta take a look at these (available HERE), especially if they want to rent out the property. The second last Tale is about seller’s warranties. They can be hard to enforce, and so due diligence with things like fire safety searches is important before committing to buy. Finally, a real estate deal that is too good to be true can have hidden problems. It might still be a good deal, but it’s best to look a gift horse in the mouth by still doing your due diligence.

Download the audio file HERE.
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If you’re buying or selling real estate in Alberta, get yourself an experienced Edmonton lawyer. Use the contact form below!

House/Home Inspection” image by Mark Moz used under CC Attribution 2.0 Generic.

Personal Responsibility in Cooperative Investing

Podcast Episode 86:
Joint Venture Blues.”

Partnering up can be a good way to buy more property, but you still have to be careful. As with everything in real estate, due diligence is essential in joint ventures. In this Tale, you’ll hear about the all-too-common mistake of not getting an inspection. You’ll also hear about how not vetting the finder/manager properly cost an investor big time.

Download the audio file HERE.
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Buying and/or selling Alberta real estate? Contact Barry now!

“3D Realty Handshake” image courtesy of Scott Maxwell. Used under Creative Commons Attribution-Sharealike 2.0.

When to Walk Away from a Real Estate Deal

mortgage default foreclosure

Podcast Episode 82:
Diligence Time Bombs And Letters Of Intent.”

When trying out a new real estate investment strategy, it’s important to know when to walk away. In this Tale, an attendee of one of my creative investing workshops was ready to try an Agreement for Sale, and contacted me for help with a Letter of Intent. The deal turned into a Joint Venture, but there were too many red flags. Our investor walked away, and we can all benefit from the lessons learned!

Download the audio file HERE and the text/handout HERE.
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Mortgage Delays

Podcast Episode 55:
It Took How Long?”

Many things can slow down a mortgage application. Two weeks is a minimum for your financing condition, but some sellers might not like it; getting pre-approved is a safer option. To avoid human error, make sure to read over your own mortgage documents carefully.

Download the audio file HERE and the text/handout HERE.
(control click or right click + save as). Continue reading

Is a Handshake Enough?

Podcast Episode 52:
Some Deals Have It All.

When doing joint ventures with friends and family, you still need formal documentation. If problems arise, deal with them promptly or pay the price.

Download the audio file HERE and the text/handout HERE.
(control click or right click + save as). Continue reading

Rent-to-Own Fiasco

mortgage fraud

Podcast Episode 45:
You Don’t Know What You Don’t Know.

A new real estate investor managed to avoid a rookie mistake. He was about to enter into a rent-to-own agreement with someone, but the paperwork was so vague as to be useless. Luckily he brought it to me, and I told him to run!

Download the audio file HERE and the text/handout HERE.
(control click or right click + save as). Continue reading

Invest Like Sherlock Holmes

Invest Like Sherlock

‘There is nothing like first-hand evidence.’
-A Study in Scarlet.

Harvey Schachter of the Globe and Mail wrote a great article, “Hunting For Success? Make like Sherlock“. He quoted Matt Heron, who says on his blog Lifeoptimizer.org that if we want to be successful, we can figure out what it takes by imitating Sherlock Holmes. Guess what—Sherlock would’ve made a great real estate investor.

Here’s how I think Mr. Holmes would go at real estate problems.

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Joint Ventures, Corporations, and Disputes

legal dispute

Getting Married Is Easy; It’s The Divorce That’s Tough!

Joint Ventures are a very popular topic with real estate investors, maybe the most popular topic. We all talk about them. Sooner or later most of us get involved in Joint Ventures.

In a nutshell, the basic Joint Venture is two people getting together to acquire a piece of real estate. The details of your Joint Venture are contained in a contract known as a Joint Venture Agreement or JVA. A good Joint Venture Agreement is very detailed and tailored to the circumstances and requirements of the participants in the JVA.

One major concern for all Joint Venture participants is, “how do we settle disputes”?

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Joint Venture Presentations

HandShake

How Not to Overload
a Potential Joint Venture Partner

We all do it, overwhelm our potential new joint venture (JV) investor with paper and PowerPoints.

We know so much about our strategy and properties that we just can’t resist making sure our newfound potential investor really gets the picture. Statistics, charts and reams of detail are thrown at someone who doesn’t have a clue about investment real estate and joint ventures.

Five minutes after you start your one-hour presentation you can see their eyes glaze over. Uh oh, this isn’t going well… How about a different approach? Continue reading

A New Approach to Joint Ventures

HandShake

Over the years I have worked on and drafted quite a number of Joint Venture Agreements (JVA).  Some people are comfortable drafting their own JVAs.  Some folks are more comfortable after taking my Deal-Ready Documents course.  However, for most folks, they want to get our help in finalising that JVA.  I would say the percentage is about one third DIY and two thirds where people are just more comfortable with a lawyer helping them out.

When someone wants some help with a JVA sometimes they say, “I’m okay with the agreement generally, but I need help with a few clauses”.  Or sometimes they say, “I’m attaching my template JVA, can you please review”?  My real estate partner Richard Bell and I used to help out with these requests, but we have decided that neither of these scenarios are completely satisfactory.  Why? Continue reading