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. https://barrymcguire.ca/wp-content/uploads/2017/10/Real-Property-Reports-and-Secondary-Suites.mp3 Download the audio file HERE. Download the handout HERE. (control click or right click + sa...
Oct 01, 2017•3 min
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 a...
Aug 29, 2017•8 min
Podcast Episode 104: “ Sellers, Are You Guaranteeing Title? ” Wow, a recent bombshell of a legal case from the Ontario Court of Appeal is causing huge ripples in the Canadian real estate world. In the Courts and in the world of precedent there is a pecking order. The Supreme Court of Canada is the highest court in the land. The Ontario Court of Appeal is the court of last resort in Ontario. Ontario is Canada’s largest common law jurisdiction. Therefore, any decision from the Ontario Court of App...
Aug 22, 2017•12 min
Podcast Episode 103: “ Unpredictable Seller Motivation And Agreement For Sale Magic .” An investor recently showed up in my Edmonton law office with this absolutely marvellous Tale about a unique property seller in Alberta and the magic of having the right real estate investing strategy for the job. https://barrymcguire.ca/wp-content/uploads/2017/08/unpredictable-seller-motivation-and-agreement-for-sale-magic.mp3 Download the audio file HERE. Download the handout HERE. (control click or right cl...
Aug 15, 2017•8 min
Podcast Episode 102: “Corporate Matters Matter.” My law firm in Edmonton, Alberta is the corporate registered office for many corporations. We get lots of letters addressed to those corporations because that’s part of being registered office. Anyone who wants to send something official to a corporation can send it to the registered office. Those official notices are often notices of trouble… A recent letter was no different. It was a scary letter! https://barrymcguire.ca/wp-content/uploads/2017/...
Aug 06, 2017•12 min
Podcast Episode 101: “Deep Diligence Saves Half A Million Dollars!” I heard from a Calgary investor recently about dodging an expensive bullet. Houses with legal suites or houses zoned for legal suites are all the rage in Alberta. What’s not to like about adding a secondary suite to a single-family home effectively turning it into a duplex with amazing positive cash flow? Everyone likes that. Tougher to do in Calgary, though. I hate to say it, our Calgary cousins are not nearly as advanced as we...
Aug 01, 2017•7 min
Podcast Episode 100: “A Tale of Real Estate Investing Success.” I’ve been doing Tales from the Trenches for 15 years. These are amazing stories from real estate investors, mostly from Alberta, Canada because that’s where I practice law. Tales began as a segment during meetings of the Real Estate Investment Network (REIN) , which I continue to do. And then about 4 years ago, it became a podcast, too. Lots of those stories are about mistakes made and lessons learned. Feedback tells me you find Tal...
Jul 02, 2017•13 min
Podcast Episode 99: “Happy Assumptions & Corporate Rollovers. “ This episode of Tales from the Trenches contains two stories about transfers: one is about transferring mortgages and the other is about transferring property. In theory, many mortgages are assumable, but in practice lenders in Alberta (and elsewhere) have been tightening up on their regulations. Some lenders just won’t allow it at all, while others require full re-qualification. This Tale explains how a real estate investor got...
Jun 12, 2017•6 min
Podcast Episode 98: “Don’t Wait, It Only Gets Worse; Discharge That Caveat. “ The first part of this Tale is about an Alberta landlord with tenant problems. The renter usually paid on-time, but then the rent started coming late. The tenant’s girlfriend left him, and when our landlord went to check on the property it appeared to have been taken over by a biker gang! Eventually the property appeared to be abandoned, but the landlord was afraid to go back. Moral of the story, nip problems in the bu...
May 04, 2017•5 min
Podcast Episode 97: “Mortgage Fraud. “ The simplest way to avoid committing mortgage fraud is to fully disclose everything about a deal to your lender. If they are satisfied, then you’re probably okay. But what happens if someone else is defrauding you? In Tales from the Trenches , you usually hear second-hand accounts of the trials, tribulations, and successes of Canadian real estate investors. In this Tale, you’ll hear it from the “horse’s mouth.” Special guest Valden Palm tells us how he narr...
Apr 27, 2017•8 min
Podcast Episode 96: “RRSP Mortgages. “ In Canada, it is possible to use money held in a Registered Retirement Savings Plan (RRSP) to fund mortgages. While this strategy can yield a nice steady return on investment, there are rules in place that can make it a bit tricky to get into. One of those rules is that the lender (i.e., the person with the RRSP) must use a third party trustee to administer the mortgage. This Tale is about dealing with a couple of different trustees and their policies on in...
Apr 06, 2017•4 min
Podcast Episode 95: “A Couple on Due Diligence “ I talk a lot about due diligence because it is one of the most important aspects of achieving success with real estate. This is a two-part Tale, showing a couple different examples of problems to look out for when doing one’s due diligence. The first example is about what happened when someone bought a property that was scheduled for renovation, but didn’t look into the plans. The buyer thought everything was taken care of—until things went wrong ...
Mar 30, 2017•6 min
Podcast Episode 94: “Removing Conditions—Should I or Shouldn’t I? “ Conditions on a real estate purchase contract should only be removed once the due diligence is complete. But what if the conditions are sort of met, but not completely? Should you still remove conditions if the property seems good, the numbers appear to work, and due diligence is more-or-less done? In this Tale, our investor removed conditions even though they only had verbal assurances about rent and utilities, rather than the ...
Mar 01, 2017•5 min
Podcast Episode 93: “Inspection Reports & Multi-family Diligence .” Under Alberta’s Residential Tenancies Act, an inspection report must be made whenever a tenant moves into, or out of, a rental property. But what happens if you buy a property and can’t get the in/out report? Similarly, building permits for multi-family dwellings specify their maximum number of units. What happens if you buy a building that has illegal suites? This episode of Tales from the Trenches explains the legal issues...
Feb 18, 2017•6 min
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...
Feb 02, 2017•8 min
Podcast Episode 91: “ Keys & Cash.” Here are two quick Tales from the Trenches: 1) tips on keeping a property buyer motivated and 2) contract language to fix the cash portion of a real estate deal. Our first Tale shows one reason why a real estate deal can close late. Even when investors have good relationships with their buyers, I say hold onto the keys to the property until everything is finalized. That’s a “key” to motivating your buyer to hurry up! In the second Tale, our investor had a ...
Jan 26, 2017•3 min
Podcast Episode 90: “ Diligence Pays Off.” I’ve said it before and I’ll say it again: when you’re buying a property, never remove conditions on the purchase contract until you’ve done due diligence. A real estate lawyer like me can protect your interests and help you negotiate a better deal, but I can only work with the documents and evidence available. In this Tale, our investor was working on buying a multifamily rental property. Unfortunately, there were many discrepancies with the contents o...
Jan 13, 2017•4 min
Podcast Episode 89: “ Transfer of Land.” A Transfer of Land is a document that allows the Land Titles office to register a property in the name of a new owner. In rare circumstances, you might be able to get this done without seeing a lawyer. In this Tale, our investor got a Transfer of Land from a highly motivated seller. Luckily, he also knew what other critical things he needed to do and who he needed to talk to in order to make the transaction go smoothly. This strategy doesn’t come up too o...
Dec 21, 2016•4 min
Podcast Episode 88: “ I Ain’t No Ho!” As a landlord, you need to be proactive about what is happening with your tenants. Be concerned if you suspect that a renter may be running an illegal business out of your property! This Tale is short and sweet because our investor took action as soon as they found out a tenant was on the wrong side of the law. Do you know what’s going on in your rental properties? Download the audio file HERE . (control click or right click + save as) Need an Alberta real e...
Dec 16, 2016•2 min
Podcast Episode 87: “ Fun with Mortgage Payout Math.” Paying off a mortgage early can result in penalties. However, there are ways of minimizing the financial repercussions. In this Tale, Barry works through some mortgage math that could save you money. Download the audio file HERE . (control click or right click + save as) Buying and/or selling Alberta real estate? Contact Barry now! [contact-form] “Mortgage” image courtesy of NYPhotographic.com used under Creative Commons Attribution-Sharealik...
Dec 07, 2016•4 min
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 . (control click or right click + save as) Buying and/or selling Alberta re...
Nov 30, 2016•5 min
Podcast Episode 85: “ Hurry Up and Wait.” When dealing with trustees or lenders, there are many things that can delay a transaction. The type of payment can trigger a processing hold, the shipping method can be slow or unreliable, and sometimes clerks just overlook things. If you need a certain result, in a specific amount of time, then you need to lock down every stage of the process! In this Tale, you’ll hear just how many things can go wrong with getting a lump sum payment on an RRSP mortgage...
Nov 23, 2016•7 min
Podcast Episode 84: “ Why the Ultra-Rich Like Real Estate.” Investing has its ups and downs. Real estate has some definite advantages in smoothing out the bumps. Ultra-rich people usually have some properties in their investment portfolios in order balance out the volatilities of stocks. Even if you’re not wealthy (yet!), the same advantages sought by the ultra-rich also apply to any investor. Download the audio file HERE and the text/handout HERE. (control click or right click + save as) Advant...
Oct 04, 2016•9 min
Podcast Episode 83: “ Lead Isn’t Dead.” Lead pipes are a very real risk with older houses; it’s a toxic metal and can make the water unsafe to drink. In this Tale, my client was given notice by her water utility provider that her rental property might have lead pipes. She took lengths to protect her tenants, as well as make sure her insurance would cover her in case of any issues. When dealing with older homes, it is essential to do diligence on the possibility of lead pipes and how to address i...
Sep 28, 2016•8 min
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! https://barrymcguire.ca/wp-co...
Sep 01, 2016•17 min
Podcast Episode 81: “ Agreements for Sale 2.” I introduced Agreements for Sale (AFS) in a previous blog post and podcast, and now it’s time to review with a bunch more examples. In essence, AFS is a type of seller financing and is sometimes called a bond for title or contract for deed. The seller retains the title, but the buyer takes control of the property—all without needing a bank. Nowadays, this technique is uncommon, but it used to be more popular during and immediately after the Great Dep...
Jul 21, 2016•13 min
Podcast Episode 80: “ Rent-to-Own.” Rent-to-Own (abbreviated as RTO and often interchangeably called a Lease-Option) is a two-part strategy. You start with a lease (the ‘Rent’ part) and add an option to purchase (the ‘Own’ part). In a Rent-to-Own scenario, the renter is, for some reason, unable to finance at the moment. Examples of financing problems are: bad credit, not enough down payment, self-employed, new job, or new immigrant. Yet, all these tenants want to make the transition toward home ...
Jul 14, 2016•7 min
Podcast Episode 79: “ Creative Real Estate Strategies.” What is Creative Real Estate Investing? It is a method for making money with real estate that uses strategies like Rent-to-Own, Agreements for Sale, and Wholesaling, among others. This is an area not too many people know about, but it offers some tremendous opportunities. One of the things that differentiates Creative Real Estate Investment from the traditional Buy & Hold approach is that it works on a much shorter timeline. Download th...
Jul 08, 2016•3 min
Podcast Episode 78: “Contract Assignments.” The practice of selling one’s interest in a real estate purchase contract—a.k.a. an assignment—has been getting a lot of bad press in BC lately. In fact, the situation there may be changing thanks to government intervention. Contract assignments are a widely used and entirely legal procedure, but the laws governing them vary by location. We’re discussing BC, and then focusing on Alberta here. As always, the principles I explain are widely applicable—as...
Jul 01, 2016•19 min
Podcast Episode 77: “ Is Title Insurance Worth It? “ In Western Canada, title insurance was created to cover problems with real property reports, but did you know that it also covers many other issues? In this Tale, we have a case where the lender got title insurance, but the buyer/homeowner did not. When there was a $21,000 claim made regarding gap registration, the matter went to court. This problem could have been avoided with a mere $50 of extra insurance! Many of the Tales I tell are like t...
Jun 23, 2016•6 min
