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ANSWERS TO THE SIX MOST COMMON QUESTIONS ABOUT FINANCING INVESTMENT PROPERTIES CANADIAN REAL ESTATE WEALTH CANADIAN REAL ESTATE CANADIAN CANADA'S #1 REAL ESTATE INVESTMENT MAGAZINE Real Estate Wealth Earn an a year with PROVEN STRATEGIES EXTRA $90,000 your portfolio FROM FULL-TIME INVESTORS WHAT TO BUY AND HOW TO FINANCE QUIT YOUR PURCHASES RENT-TO-OWN, FLIPPING, STUDENT RENTALS YOUR AND MORE QUIT YOUR DAY JOB JOB DAY YOUR QUIT DAY JOB • The consequences of defaulting on a Display until August 13, 2018 To FLIP purchase agreement JULY/AUG 18 $7.99 | or not to FLIP: JULY/AUG 2018 • Why one commercial property may be things to all you need 5 consider • When real estate and cryptocurrency meet canadianrealestatemagazine.ca CREW56_OFC-Spine_FINAL-SUBBED.indd 6 11/06/2018 4:45:17 AM The inspection advantage. When investing in residential property, a Pillar To Post home inspection will give you peace of mind about a home’s condition. Even after the sale has closed, it’s not too late to learn about your new property so you can make informed decisions about needed repairs and future upgrades that can help increase its value. · Choose from our exclusive Home Inspection Packages · Your report is printed on site the day of the inspection · Pre-listing inspections available Contact us for more information or to schedule an inspection. 800-294-5591 pillartopost.com Serving communities across Canada Each office independently owned and operated. CREW56_IFC.indd 1 11/06/2018 4:46:41 AM CONTENTS CANADIAN Real Estate Wealth JULY/AUGUST 2018 06 | It’s all your (de)fault! If a cooling market deflates your deal, the options for getting out of it are limited – and costly 16 | It’s not all malls 18COVER STORY Commercial investor Sam Beckford explains why the sector is more QUIT YOUR accessible than most investors think DAY JOB 42 | Same lake, Escaping the daily grind via real estate investing different rules is a tantalizingly realistic prospect. CREW rounded The latest BC budget up five strategies that will put you on the path to an has created a unique investment income of $90,000 a year opportunity for investors in Kelowna 46 | Step by step How a good property manager can help you maximize returns – no matter what stage your investment portfolio is in Follow us on ... 04 08 twitter.com/ Pot or not To flip or not to flip? CanRealEstMag Inspired by popular TV shows to try With marijuana legalization around the your hand at flipping houses? Ask facebook.com/ corner, what cannabis-related concerns yourself these five reality-check Canadianrealestatemag should property owners be aware of? questions first 10 It pays to know 50 Mortgage broker Dalia Barsoum answers six A little bit goes a long way of the most common questions investors have A Toronto-based real estate agent details how he about financing investment property purchases pioneered the city’s first Bitcoin-based property sale JULY/AUGUST 2018 canadianrealestatemagazine.ca 1 CANADIAN EDITORIAL Real Estate Wealth JULY/AUGUST 2018 EDITORIAL PRESIDENT TIM DUCE SENIOR WRITER CLAYTON JARVIS CONTRIBUTORS DALIA BARSOUM, RYAN CARR, PAUL D’ABRUZZO, LINDA GEWARTER, HARPREET HANS, GILLIAN IRVING, MONIKA JAZYK, JOHN KIM, RACHEL AND NEIL OLIVER, AJ PLANT, AMANDA SILVESTRI, DERIK SMITS, BRETT STARKE, TOM SULLIVAN, KATHLEEN VAN DEN BERG COPY EDITOR CLARE ALEXANDER No easy answers DESIGNER MARLA MORELOS PRODUCTION MANAGER ALICIA CHIN t press time, Ontario was still embroiled in a frequently idiotic, OFFICE MANAGER perpetually disappointing provincial election, the only true outcome of MARNI PARKER which will be the further lowering of Canadian political standards. We haven’t approached the subterranean depths of our neighbours to the SALES A south, but our tendency to focus on ideas rather than ideology is being reversed by NATIONAL SALES MANAGER, CREW political operators light on the former and overflowing, toilet-like, with the latter. TREVOR LAMBERT T 416-644-8740 ext 255 The lack of ideas concerning Canada’s housing market has been on full display E [email protected] this spring. Doug Ford promised to bulldoze swaths of Ontario’s Green Belt to help NATIONAL ACCOUNT MANAGER, CREW alleviate supply shortages until severe backlash forced him to publicly disavow his ANDREW COWAN T 416-644-8740 ext 232 ‘plan.’ The NDP government in BC expanded its foreign buyer tax while also creating E [email protected] a new speculation tax that will most certainly harm out-of-province investors; neither VICE PRESIDENT - SALES JOHN MACKENZIE move is expected to provide any relief for buyers in the form of lower prices or greater ASSOCIATE PUBLISHER - KMI supply in areas that desperately need both. TREVOR BIGGS Ford’s corkheaded suggestion and BC’s misguided new levies illustrate the paradox politicians dealing with a lack of supply must tangle with: People want to see the SUBSCRIPTIONS T 416-644-8740 F 416-203-8940 appearance of a solution – right now – so the most politically popular options are often [email protected] oversimplified and easy to implement. But these measures typically fail to address long-term concerns. What will a tax on foreign buyers or out-of-province investors do Canadian Real Estate Wealth is published bi-monthly by to help supply in a city like Kelowna? Free up a few dozen condos for a few months KMI Publishing and Events Ltd. Freelance submissions are welcome, but please contact us first. a year? But it does give the government a concrete example to point to that proves All text, photographs and illustrations must be accompanied by they’re not doing nothing. a self-addressed return envelope stamped to the appropriate value if you want them returned. KMI Publishing Inc. takes no “Not nothing” isn’t good enough anymore. Canada’s reputation as a stable, safe responsibility for damage to or loss of material submitted for place to raise a family or get an elite education is as strong as ever, and the populations publication. Canadian Real Estate Wealth is fully protected by copyright and of our largest cities are surging. It’s time for our politicians to abandon their nothing may be reprinted wholly or in part without permission simplistic, piecemeal approach to housing demand and finally get imaginative when from the publisher. it comes to supply. You can keep Taser-ing a hungry elephant to keep it at bay, but at © 2018 KMI Publishing and Events Ltd. some point you’re going to have to buy more peanuts. Viewed in this light, Ford’s pre-empted plan to destroy the Green Belt actually We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of ends up looking quite fresh. It would have been an ignorant and arrogant flaunting of Canadian Heritage provincial law, and an environmental catastrophe to boot, but it also would have been In compiling this publication, the Publisher relies upon information supplied by a number of external sources. The publication is supplied on the basis a supply-side alternative to taxes and other similarly uncreative quick fixes. that while the Publisher believes all the information in it will be correct at As a sure sign of what’s to come, Ford had no second option. the time of printing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability for any loss or damage sustained by readers arising from or in connection with the supply or use of information in this publication through any cause. Care should be taken when using comparison rates contained in this publication. Differences between contracts and variations permitted during the period of a contract The editorial team at Canadian Real Estate Wealth can detract from its usefulness or even lead to a false impression. Publications Mail Agreement 41261516 Published by KMI Publishing and Events Ltd. 312 Adelaide Street West, Suite 800, Toronto, Ont., 2 JULY/AUGUST 2018 canadianrealestatemagazine.ca M5V 1R2, Canada REALTY INC. IT TAKES FIVE EXPERTS TO MAXIMIZE your Kelowna real estate investments THE DREAM TEAM LINDSAY ANDERSON Licensed Property Manager OUR FOUR PROS AND YOU. [email protected] Phone: 250-869-6449 PURCHASING A PROPERTY outside your area can be daunting, not having a team of professionals you trust is what holds you back from taking advantage of the GREGG ALFONSO Law Corporation opportunity that exists right now in Kelowna. This [email protected] Group of Investor focused service providers is helping Phone 250-868-6789 regular people, take that next step in securing their financial freedom. 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