In my opinion RTOs are dangerous because you are ultimately finding a tenant and/or buyer for the owner and getting paid for it. It may be indirect, however it is very clear in these deals that the lessee (RTO investor) never intends to occupy the premesis, and rather plans to sublet the owners...

See the weekly RECA case summary here. page 5. http://www.reca.ca/Flash-Case-Summaries/February-6-2012/Default.html This guy was licensed, but because he didn't run his rents through his brokerage he was fined. He complied and did everything they asked but they still fined him. I post...

How is the return reduced through principle paydown? They only way it would be is if you could immediately access that equity to invest it elsewhere. Otherwise it is locked in 'latent equity', since the opportunity cost is zero you are doing just fine by leaving it in there. Also, you would...

Higher down payments reduce the overall return of the capital invested, but they also reduce the risk associated with managing the day to day operation of the property. Less leverage = less debt service = a more robust property that is better able to withstand swings in vacancy, R&M, and...

Cool idea! well done!

The owner owns the property and also owns these problems. By renting they agree to accept the risk associated with tenancy in exchange for the benefit of monthly income. Remember that the only thing you have holding a tenant / buyer into any RTO deal is the size of their deposit. If you...

Sounds like a lot of work for $2500-$5000. Also, finding tenants for people is defined as property management under the real estate act and you have to be licensed to conduct property management. You would need to protect yourself by actually having a lease with the seller and then...

I wouldn't buy multi fam without at least 30% down right now. If you go CMHC you will pay a lot of fees. It will take you many years to pay down that principle when compared to a conventional loan. You are also at the mercy of their program when it comes time to renew your loan. What if...

I havent' viewed the videos so my apologies if you mention this in there. In Alberta sellers MUST disclose that a property was once a grow op. You cannot buy a grow op, remediate it and then sell it as a normal house without telling the new buyers. To the best of my knowlege and...