Podcast Episode 76: “ The Power of Trust . “ I’ve got a real bee in my bonnet about Asset Planning & Protection (APP). I have done Focus Workshops all about Legacy Planning, Asset/Corporate Structure, Insurance, and Tax Planning, but now it’s time to bring this focus back to my blog and podcast. It’s hugely important for all of us, but we are all so busy buying, selling, and managing real estate that APP always takes a back seat. I want you to have a much better general understanding of Asse...
Jun 17, 2016•22 min
Podcast Episode 75: “ Help, I Can’t Make My Mortgage Payments!” To mark the 75th episode of Tales from the Trenches , we have a Special Extended Edition all about foreclosures. This Tale is so packed full of helpful information that it had to be nearly half an hour long! The recent economic downturn in Alberta triggered by a collapse in oil prices means that many people are faced with a dilemma: what do you do if you can’t make your mortgage payments? It’s best to be proactive and not wait for t...
Jun 07, 2016•27 min
Podcast Episode 74: “ Unconditional Mortgage Commitment: Are You Sure?” Sometimes a “sure thing” can come apart at the last minute. In this Tale, we have a buyer who found her dream home and was all ready to purchase. Or so she thought! Unfortunately, an inspection revealed major problems with the foundation. She was able to negotiate a reduction in purchase price, and so she went unconditional on the deal. But then the bank pulled her fully approved financing and left our buyer scrambling to sa...
Jun 01, 2016•8 min
Podcast Episode 73: “ Real Property Reports and Sellers.” Did you know that a land survey certificate of building locations on a property is no longer valid if there have been improvements like a deck or a garage? In the Canadian province of Alberta, an up-to-date Real Property Report (RPR) is a requirement built into the standard sales contracts used by realtors. As a seller, you either need to get a current RPR or find a way to amend that clause. In this Tale, we have two sellers who had to de...
May 26, 2016•9 min
Podcast Episode 72: “ The Basics—The Legal Side of Landlording.” In my 40-plus years of experience as a lawyer, I have observed many common situations that real estate investors have the same questions about. My answer is: it’s all about The Basics . One of those questions is how to be a landlord. As an attorney, I suggest that one of the most important parts of being a landlord is carefully following the legal rules for renting properties. In order to do this, you need to know the law in your a...
May 11, 2016•18 min
Podcast Episode 71: “ Some People Aren’t Honest.” It’s sad to say, but there are dishonest people out there. Some real estate buyers, sellers, lawyers, and realtors will try to pull the wool over your eyes. A classic trick unscrupulous people use is to slip a clause into a document or take one out without you noticing. Luckily you can protect yourself from this and keep them in check by making sure to read contracts thoroughly, as well as to reread them after every round of negotiation and/or am...
May 05, 2016•9 min
Podcast Episode 70: “ Small Town Advantage.” Smaller municipalities can be an ideal place to invest in real estate. This is particularly true if you focus on an area where there might be many opportunities and little competition. Prices are often lower in small towns, and even medium-sized cities can provide an advantage over big metropolises if you specialize in one neighbourhood or region. The key is that you need to become a local expert. Leverage your small town advantage to become a big ass...
Apr 26, 2016•8 min
Podcast Episode 69: “Lawyer? I Don’t Need No Stinking Lawyer!” Experienced investors sometimes do real estate deals without the help of a lawyer. But even knowledgeable people can miss things that a professional wouldn’t! In this Tale, we have a seasoned investor who acted for himself when he bought a property, but got help from me when he was selling. I found a couple of things registered on the title that he wasn’t aware of. Lucky for him, it was quick and easy to have these removed, but it co...
Apr 20, 2016•5 min
Podcast Episode 68: “ Disaster at Penhorwood: Update.” In a previous Tale, we reviewed the calamitous and stomach turning events at the Penhorwood Condominium complex in Fort McMurray, Alberta . Our review looked at events occurring in 2011, but in 2014 things really came to a head. I thought this was serious enough to reprint some our previous Tale, and then follow-up with a discussion of how the circumstances evolved. Read on and be very aware that some condominiums have ultra-serious issues. ...
Apr 13, 2016•12 min
Podcast Episode 67: “Coaching Successful Lease-Options.” When a qualified tenant wants to be a homeowner, but can’t get a mortgage, investors can offer him or her a lease-option. This creative investment strategy is also known as rent-to-own. The trick is doing enough diligence on the tenant to make sure that they will be able to qualify for a mortgage at some point in the (relatively) near future. It also helps to get insurance in case something goes wrong. The tenant pays a non-refundable sum ...
Apr 06, 2016•8 min
Podcast Episode 66: “ Creative Cash Takes Time And Effort.” The foundation of real estate investing is to buy and hold property. Sometimes, however, opportunities come along that require a different strategy. A highly motivated seller with a low/no equity property could be approached with an Agreement for Sale. This is both a creative real estate investment strategy as well as a type of legal document. In this Tale from the Trenches, our investor was able to put down very little money, but still...
Mar 30, 2016•13 min
Podcast Episode 65: “ Diligence with Friends and Experts.” It doesn’t matter who you are working with in a real estate deal, you still need to do your diligence. This means asking questions and reading the documents—even if dealing with a friend. Don’t assume an expert is infallible either; professionals can still be wrong or make mistakes. Download the audio file HERE and the text/handout HERE. (control click or right click + save as) Diligence with Friends and Experts: A Tale From The Diligenc...
Mar 22, 2016•7 min
Podcast Episode 64: “ Development Is a Senior Strategy.” Buying and holding single-family homes is a great strategy for anyone starting out in real estate investment. Many people eventually get into multifamily properties, which builds on the experience of basic buy-and-hold. Becoming a developer is a very different type of strategy and is much more difficult. The rewards can be worth it for a senior investor, but there is also a lot of risk involved, and so development should be approached caut...
Mar 14, 2016•13 min
Podcast Episode 63: “ Real Property Reports and Realtors.” In this Tale, our investor was right to walk away, but they will probably lose their deposit. Avoid using the same realtor for both buyer and seller. Know the difference between a Real Property Report and Title Insurance. Make sure your team members are real estate investment professionals, not just family, friends, or people who speak your language. Download the audio file HERE and the text/handout HERE. (control click or right click + ...
Mar 08, 2016•9 min
Podcast Episode 62: “ Holdbacks or Drawbacks?” A holdback clause can help insure that the seller takes care of a property’s deficiencies before closing. The language of this item in your purchase contract needs to be very specific in order to be effective. Some lenders, however, don’t like cash backs, holdbacks, or credits. Download the audio file HERE and the text/handout HERE. (control click or right click + save as) How to Get a Seller to Do Repairs: Holdbacks or Drawbacks? In a recent situat...
Mar 01, 2016•11 min
Podcast Episode 61: “ New Homes And Subdivision.” Purchasing a new property before it is built is far more complex than buying an existing one. There are even more possible issues when subdividing and condominiumization are involved. Subdivision takes a long time and has many complicating factors. I don’t generally recommend small condos (i.e., less than 8 units.) Download the audio file HERE and the text/handout HERE. (control click or right click + save as) Say No to Condos Less than 8 Units: ...
Feb 24, 2016•6 min
Podcast Episode 60: “ Timing and the Lender’s Sandbox.” When you want a mortgage, you need to play by the lender’s rules. Be sure to disclose the facts of your application or risk losing your funding. Timing is key, so leave yourself extra room after removal of final conditions. Download the audio file HERE and the text/handout HERE. (control click or right click + save as) Rules for Getting Mortgages: Timing and the Lender’s Sandbox There are two things you always have to consider in any new de...
Feb 17, 2016•6 min
Podcast Episode 59: “ Travel and Tenants.” Managing properties when they are far from where someone lives can be tricky. Use this fact to help you find motivated sellers. Beware that pre-possession inspections require custom clauses and you can’t just kick existing tenants out if they are a problem. When finding replacement tenants, know the difference between rent deposits and security deposits. Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Bu...
Feb 10, 2016•7 min
Podcast Episode 58: “ You Are Buying the Neighbourhood.” When buying a property, you are buying the neighbourhood and neighbourhoods are not homogenous. Do some diligence around schools opening or closing, new public transit soon or in the works, and rezoning. Check parking lots and dumpsters where you intend to buy; these will give you an informal tenant profile. Any environmental considerations? Download the audio file HERE and the text/handout HERE. (control click or right click + save as). M...
Feb 03, 2016•8 min
Podcast Episode 57: “ All the Suites Look Just Like this One.” When buying a multifamily building, inspect all the suites. Your vision of what is satisfactory and the vision of a seller anxious to sell are likely to be completely different. Failure to inspect meant substantial extra expense after closing for this investor. Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Inspecting a Multifamily Property “All the suites look just like this one,” i...
Jan 25, 2016•6 min
Podcast Episode 56: “ You’ve Got How Many Vacancies?” This is the story of one investor’s path from single-family dwellings to multifamily properties. Multifamily lenders fund mortgages based on rental revenue. On closing day, every vacancy reduces the amount of mortgage money. What does it mean when two vacancies turn into eighteen vacancies on closing date? Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Mortgages and Unrented Suites: You’ve Go...
Jan 18, 2016•11 min
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). Mortgage Delays: It Took How Long? Tales from the Trenches often talk a lot about timing. For exam...
Nov 27, 2015•6 min
Podcast Episode 54: “ Get it in Writing.” What happens when a real estate deal is delayed past the closing date? The seller can choose not to sell, but they still keep your deposit. Verbal agreements for things like extensions aren’t enough; you need signed documents or else people can change their minds. Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Get It In Writing A brand-new investor was looking to buy her first investment property. She ha...
Nov 23, 2015•6 min
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). A Tale of Greed and Treachery: Some Deals Have It All This Tale is all about opportunity lost. The story talks about dealing with family and friends, failing to deal promptly with trouble, lack of document...
Nov 12, 2015•18 min
Podcast Episode 51: “ 30 Days to Close Is Crazy. “ There are many things that can delay real estate transaction. 30 days is a minimum, but keep in mind that closing time should only begin after final conditions are removed. Download the audio file HERE and the text/handout HERE. (control click or right click + save as). “30 Days To Close, That’s Just Crazy!!” This Tale comes under the heading of ‘The Basics.’ For new investors especially, there are certain things or situations that keep coming u...
Nov 04, 2015•8 min
Podcast Episode 50: “ Cornerstones Program. “ In Edmonton, AB, we have a program where homeowners can get a loan from the City to put in or fix up a secondary rental suite. The difficulty is that the City then puts a caveat on the title to ensure that their requirements are met. This can complicate selling, purchasing, and refinancing. Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Caveats on Title: Cornerstones Program Cornerstones is a grant p...
Oct 27, 2015•10 min
Podcast Episode 49: “ Nailing It Down. “ When an inspection reveals problems with a potential property, these need to be fully resolved—even when they seem like they might be OK. Before removing conditions from, make sure to nail down issues so that they are 100%. Close or sort of isn’t good enough! Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Inspection Issues: Nailing It Down An investor found an interesting property. Nice house in a nice ar...
Oct 23, 2015•6 min
Podcast Episode 48: “ Plan B. “ Money and financing are essential parts of any real estate transaction. Always make sure to have a backup in order to make sure that you can still close a deal… just in case your first choice for financing dissolves! Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Financing: Plan B “It’s all about the money baby!” Well, maybe not all about, but if you don’t have money, you can’t do deals. Having the money means you...
Oct 19, 2015•10 min
Podcast Episode 47: “ Lender Lessons . “ Let’s look at five different aspects of ensuring financial success for your real estate business. Banks like things plain and simple. You need to deal with conditions on a mortgage and names on the title before you can close. Make triple sure you are unconditional before removing ‘subject to’ from your contract. You also need to make sure to disclose to your lender any ‘creative’ approaches to investing. Download the audio file HERE and the text/handout H...
Oct 14, 2015•7 min
Podcast Episode 46: “ Current Realities . “ Lending policy changes, as does the interpretation of existing rules and regulations. Make sure you stay on top of the current situation with your lender, the government, and market conditions. Download the audio file HERE and the text/handout HERE. (control click or right click + save as). Financing Facts: Current Realities Let’s get real, folks. The hard reality is that lending is a dynamic part of investing. Here are three current aspects of financi...
Oct 08, 2015•7 min
