How Does Home Buyers YEG Work?

I get calls every day asking me to learn a little more about Home Buyers YEG & how we work as a company? Our slogan ‘We Buy Houses YEG’ doesn’t provide much of an explanation but this blog post will!Selling Your Home, HomeBuyers

At HomeBuyersYEG we Renovate houses, Re-develop the property or Hold homes as cash flowing investment properties.

It’s that easy! HomeBuyersYEG searches for mutually beneficial deals in Edmonton where a real estate seller would benefit from a quick worry free sale & we can benefit from adding value to the homes current condition.

Our services are definitely not for everyone but we strive to find the perfect fit & when we do, the seller walks away with what they wanted out of the house & we’re able to get our hands dirty on another project!

Is my house right for this sort of a sale? 

HomeBuyersYEG could be the perfect solution for getting rid of your home in many instances. Are you:

Unmotivated to fix up your home before putting it on the market?

Worried about keeping your house neat for never ending ‘walk throughs’?

Is there not enough equity in your home to interest realtors?

Worried your home’s structural conditions would stop future buyers from getting a mortgage on the place?

HomeBuyersYEG works for many different situations & if you’re not happy with our price at least you gave it a shot! Next time you’re thinking of selling call 780-306-1661 & find out what we’d be willing to pay on the spot! Or contact us online!






Real Estate Investors Keys To Success

Real Estate investing can make you hate or love owning property and much of that outcome can be entirely decided by luck. Luck is definitely a factor in Real Estate (like many business ventures) but luck only lasts for so long.. Here’s a few tips I’ve learned from some of the true Edmonton Pro’s who make money over & over on every deal the pursue.

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#1 Patience

When I first began investing in Real Estate I was convinced the only thing worse than a bad Real Estate deal was letting your capital rot in a bank account or low risk mutual fund. After some time spent working with a few guys who are truly the best in the business, here in Edmonton, I learned there’s always a better deal.

The key is to find the right balance between a ‘rare’ deal and a ‘unnatural’ deal a rare deal happens every day in Edmonton, someone will find a piece of property for 10-$30,000 under the current market price, which is to be expected with real estate as the market is not entirely efficient. An unnatural deal is the type of deal you hear about from a friend of a friend – someone who found a giant lot in Westmount with an old lady who wouldn’t let him pay more even though he insisted (a true story I actually heard once). Unfortunately, waiting for this deal is like trying to win the lotto and the man power to finally find this perfect lot often goes unrewarded. What I’ve learned – be patient but not hopeful and put the time and energy you would waste on countless walk through’s and negotiations towards making that one ‘rare’ deal into a really fantastic flip or cash flowing asset!

#2 It’s Okay To Spend Money on a House Before You Buy It

If you find a really great opportunity but the house is a little rough around the edges, do not skip the 300-1,000 dollars it takes to get the place fully inspected. The main reason is to prepare yourself for what is to come. It may be hard to spend that sort of money up upfront before the house is yours but knowing what’s behind those basement walls or lurking in your sellers attic is definitely worth it.

An example how this could work towards your benefit: I recently purchased a home in Elmwood, it had been on the market for 106 days (usually this is a bad sign) – I spent about $600 on inspections before buying to find #1 the seemingly poorly build upgrades were to code #2 the electrical & plumbing where fine #3 the house was in good shape structurally. After 106 days on market the sellers were pretty much convinced the house was worth land value. I got the house for 285K & the initial listing price was 370K! That’s not too bad!

So, in the future: Don’t fall into the trap of expecting too much from a real estate deal and Don’t get careless about ensuring the asset you’re about to buy is truly as good as you think it is!


Can We Protect ourselves from Deal Killing Lawyers?

The most dreaded words a residential real estate buyer hears are: ‘let me have my lawyer take a look at this, then I’ll get back to you’. The reason? Lawyers look at real estate deals through a black & white lens. To a lawyer they expect a downloadmoderate conditional period, a deposit, then a moderate closing period and honestly it’s what I dream about as well, but real life often gets in the way, making deals more and more complicated.

A few ways my deals become interesting are through Cash Back terms, Assignment Scenarios and long holding periods. This post will discuss the most common creative deal strategies & how to ease conservative lawyers into these abnormal terms.

A Cash back scenario can be used on each side of the agreement. For instance, if you’re buying a house for $300,000 & would like some cash for renovations, you can change the price to $305,000 with a ‘term’ that the seller owes you $5,000 cash after the mortgage has been paid off. On the other hand, cash back is a great way to motivate sellers to sell for your price. What if the only reason a seller won’t accept your price is because they’re cash poor at the moment & need some money to move out? Getting them some ‘cash back’ in their pocket can be a good way to move a deal forward especially if your price is not completely covering their existing mortgage. The best way to get a Cash back clause into your Purchase Contract is to get your lawyer to write one, then insert it with a space for signatures underneath.

Assignment Scenario’s are simply times when you get ‘under contract’ with an owner & then sell your purchase contract to another buyer. This part is not very complicated and completely legal under Alberta’s current contract laws, we use it all the time at HomeBuyersYEG. This type of situation can happen for many different reason but often times it’s a great strategy when you’ve just got too much on your plate & want to earn a small commission fee by selling the rights to a deal. To protect yourself from potential legal problem with assignments most lawyers will not have a problem with you simply signing your name at the beginning of the purchase contract with ‘Name / Nominee’.

Lastly, the dreaded long holding period. The longer a contract is tied up the more closely a Real Estate lawyer will look at it because a longer period means a longer time they’re liable to their clients. For instance, if they miss a strange clause and the contract closes in 1 week there’s only 1 week for that clause to effect anything, but if it’s 6 months that’s a long time, for a lawyer, to be held liable for their interpretation of the contract. A good way to ensure the owners lawyer reads the contract & approves is to prepare a statement of intentions document with the sellers before they send the Purchase Contract to their lawyer. This document should outline why both parties believe a longer holding period is mutual beneficial & why any ‘non boiler plate’ clauses are added into the contract. Then both you & the property owners should sign this statement. This opens the door to constructive criticism rather than just criticism from the lawyer.

So there’s a few small tips that may or may not get your ‘creative’ contract’s stamp of approval from a conservative lawyer. My last piece of advice: Have your own lawyer call their lawyer to help explain. Not all lawyers are created equal and this piece of advice is provided with the hope that maybe your lawyer could even teach their lawyer a thing or two about real estate law in general. There are many times a lawyer will find themselves representing a contract in a real estate deal even though it is not their area of expertise!

If you have any questions, or are having any trouble with Real Estate contracts please reach out! 780 306 1661

The Real Estate Concept of Appreciation

locationAppreciation, Cash Flow or Tax Shelter. These are the three ways people use Real Estate to make money & a good Real Estate investment may harness all three of these yet many quality investments specialize in just one.

This post talks about appreciation – the easiest methods to make money from your home yet the most commonly misunderstood. Appreciation is the slow increase in the value of your home, it’s often cited as 2-3% on the macro scale, yet people forget that is just an average! There are many neighborhoods in Edmonton appreciating at 5-7% (Per Year) while others may never appreciate a single % over a 10 year period.

As an investor, or current home owner, what indicators will tell you the percent of appreciation to expect from your investment?

Location – The location of your property is the main aspect of appreciation. So how do you tell if you’re buying in a good location that offers high appreciation?

  1. Crime Rate: Check Edmonton’s Crime Mapping service to see what sorts of criminal activity has been going on in your neighborhood. This will give you an idea of the levels currently and in the past, is it going up? Or down? this will give you a good idea as to whether or not your neighborhood is ‘on the rise’ or slowly become a less exciting neighborhood to raise a family in.
  2. Development Permits: Check the cities Weekly Building Permit Report or simply drive around your neighborhood. Is there any new development going on? This is a good sign! A redeveloping neighborhood such as Grovenor or Forest Heights is appreciating at levels of to 5-8% per year!
  3. Transit Development: Is transit actually good for your neighborhood? It will definitely make the area busier but it can also largely increase the value of your home. Check the Cities Transit Projects to see if you’re in luck! The year after an LRT stop is built even 7-10 minutes from your house expect a 15% bump in the value of your Land.


Appreciation of your land is constantly fighting the Depreciation of your house.

Your LAND appreciates your HOUSE Depreciates, if you’re not maintaining your home as it grows older, that beautiful 3-12% appreciation gets eaten up. Let me explain this from a commercial buyers perspective: A rent-able house allows for ‘land banking’ which means holding their purchase for a few years before building and it also keeps their GDS the same as the company does not have to take on non income generating debt.

To get the most out of appreciation ensure: Your Home purchase is in an up & coming neighborhood, the government is putting money into the area I.E Transit, and you maintain your house as to ensure it can maintain renters once you choose to sell!

Maximize your properties Sale Price in a Buyers Market

This post will review, the best tactics for 3 of the most common house selling methods. Remember! When selling your home a $10,000 difference in the price you sell means $10,000 extra in your pocket. To the buyer, that extra $10,000 is simply +/- $50 in mortgage payments each month.

Use a Realtor – Realtors are great for introducing your home to motivated future home owners; although their fees are substantial. How do you make money on the sell side of your Real Estate while still using a realtor? Make sure your house is what a future home owner expects in their house. This can include, a fresh coat of paint, a well-kept yard, a clean home, and most importantly: a good smelling house. Remember those Glad commercials? Nose blindness is a thing. Ensure your house smells fresh when people are walked through the property. These are some often overlooked points of selling your real estate as we like to convince ourselves these massive financial investments are decisive, rational decisions; yet we all know a house is something many people fall in love with.

For Sale by Owner – Choosing to sell yourself is the cheapest method of sale but also invites sharks into your midst. First you need to decide on a price, get a realtor to inspect your home and tell you how much it is worth, you can also check comparable prices in your area through the MLS system. Next you will want to establish your marketing channels: Kijiji, Craigslist as well as a few ‘for sale by owner’ signs on your street. This should draw enough traffic that you are able to get several offers. Lastly, if you have time to create a drawn-out sales process you should do so, the first few offers you get will likely be lower than the next couple.  I would suggest spending less time on the overall quality of your hose if you choose to go this method, many times the buyers looking for FSBO are a little more entrepreneurial in their real estate purchase, they’re looking for a house they can add value to.

Sell to an Investor or Builder – This is the fastest way to sell your home if you are looking for a quick sale. Commercial real estate investors look for ‘fix & flip’, re-development or investment properties. The best way to sell your home by the end of the week would be to find a current under construction property in your neighborhood and give the number on their sign a call, if they do not buy it they will know someone who will. You can sell your home in 48 hours for the right price (normally about 85-90% of what you’d get selling normally). This is not optimal if you have time to wait but if you’re at risk of foreclosure, your home is too structurally damaged to sell as a livable property or any number of reasons, this is an option often overlooked by distressed home owners.