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Daniel St Jean and Sarah Larbi interview Ryan Carson from Carson Law. They discuss common mistakes people make in real estate investing, and how to prevent them.
Ryan discusses the importance of estate planning for real estate investors. They say that it is often neglected or put on the back burner, but it is actually very important. Right now is a great time to do this kind of planning, because there are fewer deals being done.
They also talk about opportunities in the market today.
There has been a decrease in business volume due to the sharp increase in interest rates. However, prices have also come down correspondingly, so people can still have a good cash flow.
They discuss how the current market conditions present an opportunity for investors. They note that prices are lower and there is less competition from other buyers, making it a good time to invest.
1. Even though interest rates have gone up, there are still many benefits to buying a property now, including lower prices and,
2. Ryan recommends that buyers include conditions in their contracts, such as inspections and finance approvals, in order to protect themselves.
This episode discusses the importance of having a proper inspection done on a property before finalizing the purchase, as well as how the inspection can be used to negotiate a lower price.
The question is whether it is better to buy a property with existing tenants in order to have the immediate cash flow or to buy a property intending to renovate it and then re-rent it at a higher rate. If the latter, the buyer needs to make sure that the seller agrees to terminate all existing leases prior to closing.
It is better to have a vacant property when selling, as it is more marketable. If there are tenants in the property, they may try to stay even after being given notice, which can be a problem for the new buyer.
The best way to deal with tenants in order to sell a property Ryan suggests giving the tenants a cash-for-keys agreement or terminating the tenancy so that the property can be listed empty. There is a risk that the tenants could come back if they are not given proper notice, but the speaker suggests that this is a risk worth taking in order to get the best possible price for the property.
Ryan discusses the importance of ensuring that all paperwork is in order when terminating a tenant’s lease in Ontario. They mention that the process can be tricky, and it is important to make sure that all notices are served correctly. Finally, Ryan Carson advises that anyone expecting to get vacant possession should leave themselves a buffer in case the tenants have not yet started packing.
They also cover Joint Venture agreements. The number one tip for setting up a successful joint venture is to document the potential problems that could arise and how to exit the venture if those problems occur. Other important factors to consider include each partner’s expected rate of return and what will happen if the project is unsuccessful.
It is important to have well-documented and signed agreements in place from the beginning of a joint venture in order to avoid arguments and legal issues down the road. Additionally, all parties should have independent legal advice to ensure that the agreement is binding and enforceable. It is also important to have a plan in place for how to deal with additional capital needs that may arise during the course of the venture.
The biggest mistake investors make when hiring a lawyer is waiting until the last minute to do so. This can often lead to missing out on potential opportunities to save money and protect themselves from legal issues down the road.
It is important to involve a lawyer early on in the process of negotiating and closing a deal, as they can provide valuable input and help prevent any last-minute issues. It is recommended to pick a lawyer who specializes in real estate, rather than using a family lawyer or someone who has handled a previous divorce, for example.
Always work with an experienced real estate lawyer who is familiar with investing. This will ensure that they are knowledgeable of the law and can relate to the investor’s situation.
Carson Law would like to invite listeners to follow them on social media or their website to learn more about their services in law. They specialize in working with investors and offer advice for those just getting started or in growth mode. Contact https://www.carsonlaw.ca/
This episode was brought to you in part by
Legal Second Suites – https://legalsecondsuites.com
BM Select/Butler Mortgage – https://bmselect.ca/
Paul Copcutt – https://paulcopcutt.com/personallybrandtastic/