Frequently Asked Questions About Co-Ownership

1) Are you sure the market is going to keep increasing?

Yes. For example, the Calgary real estate market has averaged 7.2% + growth since 1972. Of course it’s not a straight line – it’s only an average; it does go up and down.

2) What is the worst case scenario?

The property hasn’t risen by a dime in 30 years and the tenants have paid it off in full. It is much more stable than a mutual fund investment.

3) How is the deal split?

We do all the work from finding, analyzing and purchasing the property to maintaining day-to-day operations and preparing the property for sale and closing. We split/share the profits after your initial investment is returned to you.

4) Can I get a guaranteed rate of return? No.

If you want a guaranteed return, we can set up a loan structure instead of co-ownership. I’ll show you some of our operating investments. If you don’t make money, I don’t make money either.

5) Can you explain all of the details of the Joint Venture/Co-ownership Agreement?

What I can tell you is that the agreement is to protect both of us equally. I don’t want to explain the legal terms. I’ll let my lawyer explain that at my expense and then you review it with your lawyer.

6) Can I get a copy of the Agreement?

We’ll sketch out a responsibility chart, and we’ll provide a copy of the agreement so you can review it with our lawyer.

7) Can we see the property before we buy it?

• We look at the numbers and it either makes sense or it doesn’t. I don’t want emotions involved in the deal, just the fundamentals.

• Once we have closed, I will take pictures inside and out and send you a copy along with the home inspection and appraisal. We’ll keep each property we buy in a separate binder.

8) How do you find and analyze the properties?

• I look at more than 50 homes a day online and in person. The properties are then filtered and analyzed to find the best property for each specific co-ownership/equity sharing/JV opportunity.

• I have a detailed form that I complete that gives me every detail of the property from the type of fridge to the basement flooring.

• The property is analyzed for cash flow, necessary repairs and appreciation.

• Properties that are filtered and meet the criteria of the analysis are purchased at fair market value

9) Is my deposit money safe?

• The initial purchase deposit goes directly to the lawyer’s trust account for the purchase. It’s held there until the mortgage company needs the funds.

• Your name is on the mortgage and title of the property. This is a true co-ownership of the property involving no land lording issues.

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