Investing with Those Closest to Us Is Fraught with Peril

Image of stick people holding hands

Podcast Episode 114:

“Real Estate Between Friends and Family.”

It might seem easier to invest in real estate with people you know and love because you already trust them. Actually, you still need to do the same amount of due diligence, if not more! When you get into real estate deals with friends and family, there’s more at risk than just money.  This podcast is about protecting your relationships if you choose to invest in property with the people closest to you.

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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Don’t Lose Time and Money from Outdated Real Estate Documents!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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Creative Investing with Foreclosures: Appearing in Court and Taking Notes.

mortgage default foreclosure

Podcast Episode 109:

“Foreclosures, Creative Deals, and Court.”

This Tale is about taking good notes when you appear in court as the buyer of real estate in foreclosure. My client was a creative kind of guy and he found a property in Alberta where the mortgage payments weren’t being made. The seller was still living in the home but trying to sell and get out from under the foreclosure. After some conversation, my client put together a creative deal that the seller and the seller’s lawyer both liked. Now, in addition to being in foreclosure, the seller was in way more financial trouble and he had actually filed for bankruptcy…

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Is Your RRSP Mortgage Legal?

Podcast Episode 108:

“RRSP Mortgages and the CRA.”

Registered Retirement Savings Plan (RRSP) mortgages, the supposed Holy Grail of private lending. I hear it all the time. Borrowers of all stripes believe there is a vast pot of money held in RRSP accounts just waiting to be lent to them. And, to some extent, that’s true. There are lots of folks with lots of RRSP money tucked away. Maybe you’ve thought about leveraging your RRSP to become a lender yourself.

But, like everything else run by the government, there are rules to follow if you want to lend your RRSP money as a mortgage.

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How to Lose a Deposit: Unmet Conditions Can Sink a Real Estate Deal

Podcast Episode 107:

“Conditions, Lost Deposits,
and Collapsed Deals.”

In other Tales from the Trenches I’ve talked about the importance of accomplishing sufficient diligence on any property purchase to say that you have done ‘Due Diligence.’ It’s worth repeating here because it’s so important. The notion of doing or accomplishing your own Due Diligence is what allows you to make a buying decision. Will you buy or not buy? In this Tale, a deal falls through because of a lack of diligence regarding financing conditions.

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Secondary Suites and Real Property Reports in Alberta

Podcast Episode 106:

“A Real Property Report
with Municipal Compliance Doesn’t Prove a Suite is Legal.”

Are you looking to buy a property with a secondary suite? Ideally, you want to buy properties with legal secondary suites. But guess what? A Real Property Report doesn’t prove a suite’s legality in Alberta.

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Wills, Estates, and Selling Property

Will and Testament

Podcast Episode 105:
Probate Sales Need Patience

This Tale is about the legal process in Alberta (and some other Canadian jurisdictions) of selling property as part of an estate after someone dies. A long-time client got in touch to say that her Dad had passed away. I knew her Dad and had done seven or eight real estate transactions for the family over the last 15 years. Dad was a great guy and I was very sorry to hear of his passing.

My client said it was a simple estate; basically a bank account, some personal possessions, a few stocks, bonds, and mutual funds, and an acreage where Dad still lived at the time of his passing. There was a Will appointing my client as sole executor and an estate lawyer was already on working on probate.

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