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In the beginning was the word...
03-20-2013, 04:31 PM, (This post was last modified: 03-20-2013, 04:58 PM by Skook.)
In the beginning was the word...
Well, actually in the beginning there were two words: passive income.

I have just finished reading the latest post at VREAA - 'Spot the Investors #100' and I knew immediately what those two were aiming for. The answer was among the amazing docs I stumbled onto the other day. There is a Pender Harbour connection in this piece and I was going to quote from it at some point; but, I think it is worth rolling the article out now.

So, here it is in its entirety:

Quote:Looking to ride real estate to riches
Marcie Good , Globe & Mail - May 26, 2006

Pinder Bains is a 30-year-old cashier taking courses towards becoming an accountant, but she has other ideas for making a living. Her parents own three houses in the Lower Mainland, and she has grown up knowing about the value of property. That's why, on Vancouver's sunniest Saturday of the year, she is cooped up with almost 500 others in a conference room of a Coal Harbour hotel, listening to speakers on the general topic of earning "passive income." "I'd like to, you know, not work." she says.

Wouldn't we all. And that's the lure of Ozzie Jurock's popular spring conference, LandRush 2006. The real estate analyst, buyer and author has built a well-known business based on dispensing advice, and here he and five other speakers are discussing different aspects of acquiring and managing property. "You can create any life you want if you invest in real estate!" Mr. Jurock promises. "I believe that."

A host of vendors outside the conference room are also offering their market know-how, with tantalizing promises like How to Buy an Apartment Building with No Money Down! One representative from a land development company makes a pitch on constant replay to each attendee that wanders by: "We allow small investors to piggyback on our expertise." Realtor Randy Friesen, whose truck bears the logo If you've got money in the bank, you're not buying enough real estate, hands out a phone book-sized package of properties he considers potential cash-flow generators.

As April's housing stats show, residential prices in the Lower Mainland continue their meteoric rise, with an average house in Vancouver fetching $844,444. That's up 25 per cent from a year ago, and almost double its worth from 2001. A typical condo now sets you back $327,000, showing a similar acceleration.

With those kinds of numbers in circulation, it's no wonder that people are looking to get into the game.

It doesn't take long for Ms. Bains, who is working out mortgage numbers with a pencil as she listens to the first speaker, to realize that the promise of income without work is beyond her means. Calculating a $400,000 mortgage with 25 per cent down, she would need a tenant to pay at least $2,000 a month to cover the payments and property taxes. That still leaves maintenance costs. "I think you really need to do your investigating," she says. To that end, she's thinking of taking Mr. Jurock's upcoming $1,497 weekend seminar course which promises a nuts-and-bolts guide to investing.

With his folksy charm and corny sense of humour, ("Forecasting is never easy when it's about the future," he reminds the crowd,) Mr. Jurock regularly packs halls like this. He kicks off the day with reminders of his "picks" from previous years. In 1999, he liked Pender Harbour and the Sunshine Coast. In 2000, he liked the Fraser Valley. In 2001, he encouraged people to buy resale downtown Vancouver condos for $195 a square foot. Going through the past five years, he names dozens of small towns and cities across the province as evidence of his solid record. "Even if you had bought one thing," he says, "you would have done well."

This year, he likes anything within a two-hour radius of Vancouver, pointing in particular to Chilliwack, Harrison and Agassiz.

Small cities with a solid employment base are good bets, such as Kamloops, Victoria, and Nanaimo.

He "loves" Kelowna, Vernon, Salmon Arm and Osoyoos, and thinks that Cranbrook (with its brand-new airport) will grow. His list goes on to name all waterfront properties, recreational "sleepers" like Chemainus and Campbell River, and he soon sounds like he's reciting an atlas of the province.

He gives no easy answers, pulling out time-worn axioms instead, like "trend is your friend." Those who came looking for an insider tip ("Do you think Richmond will flood?" someone asks the panel at the end) would have been disappointed. He even claims ignorance on whether Vancouver's real estate market is in the middle of a bubble, about to be burst by rising interest rates. "I've listened to 35 years of talk of collapses and deflation and inflation," he says, "and all I know is if you bought a house in 1960, it's 20 to 35 times higher than it was then."

The get-rich-slow approach is also espoused by Rudy Nielsen, another Landrush speaker whose Niho Land and Cattle Co. owns and develops land across the province. Most of the properties he is selling now, like oceanfront lots in the Queen Charlotte Islands and a subdivision in Prince George, are parcels he bought two decades ago. "I never make a decision until I'm sure it's the right one," he says. "I sit back and wait."

With skyrocketing prices in the Lower Mainland, more investors are looking at the small towns and remote places across British Columbia, according to the numbers collected by his market analysis company, Landcor Data Corp.

Mr. Nielsen also shares the story of his own spectacular bankruptcy in 1982. "I was cocky and brash," he says, recounting how he bought more than he could handle and found himself $1.5-million in debt. After his wife and banker left him, he took his dog and a canoe to a lake as far north as he could go and lived in the woods for two weeks. He told himself then that if he ever got out of that mess, he would help other people avoid it.

On Monday after LandRush, he is asked to fulfill that vow. All day he fields calls from people asking if they should buy. "I can't believe some of the people who have phoned me up and said, 'I've got a mortgage on my house, I've got a second, and I'm making payments with my credit card.'" he fumes. "I just feel sorry for those people. For Chrissakes, keep a safe fort!"
03-23-2013, 08:55 AM,
RE: In the beginning was the word...
I thought I would post another Ozzie Jurock gem. The quote below appeared in the Jan/Feb 2007 edition of Westcoast Home & Design. Jurock has been the mag's RE 'Advisor-in-Residence' for a number of years.

In this excerpt, Jurock points the way to becoming an RE millionaire. Notice here, he does advise avoiding the downtown condo market.

Quote:OK, what plan should you do if you want to make money on real estate?

Forget the fad downtown condominium market, the fad condominium hotel deals, the strange fractional market, the "get rich quick schemes," it is smarter to invest for the long term. Note, the key word here is "invest."

If the goal is to have $1 million in cash in 20 years, here is how you can achieve it:
  1. Buy five condominiums in growing urban areas such as around the Lougheed Mall in Burnaby, in the Fraser Valley - yep Chilliwack - around Edmonton University, in Calgary, or in some good small towns - Kamloops, Nanaimo, others. Remember urban real estate will always have a use and as such will always have value.
  2. Buy into a good building (research it) and pay no more than $100,000 for each unit.
  3. Get a rental income of about $800 for each condominium.
  4. Finance the purchase 100 per cent (or so)
  5. Own them in 17 to 20 years, clear title.
  6. Even if they never go up in value and the rental income never were to go up - you will get $4,000 per month income forever (and then your kids - forever). An income of $4,000 per month today would pay off a $1 million dollar mortgage. Presto! You are a millionaire!
And the best part ... even if prices never go up, and even if rents never rise ... you will have that passive income. Who cares about markets ... if you follow those simple steps. That first unit you paid off, that rental cheque of say $800 - you will get for the rest of your life ... and then your heirs will get it ... and then ... their heirs. You get the picture. Quick flips are fun ... fortunes are founded on investment.

So, get into action. After a few years on your way to $4,000 s month, you will have $1,000 then $2,000 and so on. Use the leverage of rental income. A plan like this starts you on the road to real estate investment success. To start creating passive income. Didn't do it in the past? Didn't stick to your plan in the past? Remember that your past in no way determines your future. Get your plan ready ... you have 2 months. And then in 2007, do some learning, hire the professionals, do some research, do not get swept up in the "multiple offer" euphoria. Invest in certainty. Get into passive income - it will set you free.

There are those magic words again - "passive income" and with an added bonus no less for it "will set you free!"

Now, I know absolutely nothing about RE investing, but the impression I get from this is that it is a recipe for becoming a 'slum landlord' and without ever having investing a dime of your own. All the money keeps rolling in year after year without any word of future expenses; I guess mentioning something so mundane is an unnecessary damper on what is otherwise a beautiful and wealth-creating experience.
03-24-2013, 09:11 PM,
RE: In the beginning was the word...
arbeit macht frei indeed
03-25-2013, 07:45 AM, (This post was last modified: 03-25-2013, 08:16 AM by Skook.)
RE: In the beginning was the word...
I am doing one more post on Ozzie Jurock and sorry for its length but I guarantee it will be the last. You see I spent all Sunday researching him and I would like never to see his name again. I have been working on property ownership on the Sunshine Coast and when I saw the data I asked myself, "Could Ozzie Jurock have had a hand in this?" So, I went back to his websites - he has about a half dozen - and started seriously reading. In turn, I did some more searching and discovered what some of you likely already know that a number of disgruntled property investors have initiated two class action law suits against Ozzie Jurock; his partners Ralph Case and David Barnes; and, their companies. I won't make any comment on these cases; however, if you want to read the legal details yourself, here is the link to the BC Supreme Court Judgement Search web page:

In the 'Key Words' box, type in Gregory Bosworth and you will get two results. The one dated November 24, 2011 certifies his class action suit which he initiated in April, 2011. The second result is from January 10, 2013 where the Court of Appeal denies an attempt by the defendants to have the class action dismissed.

The second name to enter is Brian Stachniak. This judgement, dated April 25, 2012, certifies his class action suit which he initiated on February 28, 2012.

These class action lawsuits were both mentioned on Vancouver Real Estate Anecdote Archive and the post quotes extensively from a Vancouver Sun article about the suits. But, the link to the Sun article now takes you to a "Page Not Found" notice because every Ozzie Jurock real estate article and any article quoting him has been expunged from the Postmedia newspaper chain website archive (the network that includes the Vancouver Sun, The Province, the Calgary Herald, the Edmonton Journal, etc.). So, here is the link to that VREAA post:

The paper along with Vancouver radio and TV stations helped build Mr. Jurock's reputation as an "expert" in the publics' eye by turning to him on a regular basis for comment on anything to do with real estate. Of course, you, reader, knew that but me living up there in the bush on the Sunshine Coast didn't - but I do now. (Ozzie's articles for Postmedia's 'Westcoast Homes & Design' magazine are sill up on that website; however, the last is dated May 21, 2012)

Now, Mr. Jurock, on the other hand is extremely proud of every thing he ever wrote that appeared in print whether penned by himself or by others who were quoting him and by everything he ever said on radio or TV and it is all up on his websites. Here are two links to print articles: and This is the link to his broadcasts (you can watch with RealPlayer): Let's face it the man was everywhere.

Before I wrap this post up, I would like to present three final excerpts from his Vancouver Sun articles that appeared in 2002 and 2004. In light of all that has occurred in the lower mainland real estate market and likely on the Sunshine Coast, too, I think they are worth the read. I found articles written after 2006, are basically a rehash of early pieces.

Yes, you can buy a home with no money down, Vancouver Sun, November 23, 2002:
Quote:Yep, you can buy ANY HOUSE in Vancouver up to $400,000 without ANY CASH. It helps, if you just did not have your car repossessed and you are gainfully employed (as in being able to make the mortgage payments) but yes, your can do it.

No money down Mortgages range from $75,000 to $400,000. Houses or Townhouses only! You must have good credit, have been employed for 2 years. (Examples: $400,000 = $3104, $200,000 = $1552). You can even get a mortgage of $500,000, but must put down 20% on the balance between $400,000 and $500,000 ... thusly (Thusly? Thusly!) You can buy a $500,000 property with $20,000 down.

More interesting is the fact, that with the myriad of mortgage products out there you need a mortgage broker with the willingness to be creative and understanding and the know-how to put some numbers together.

How about this? Did you know it is cheaper to get a ‘no money’ at 7.05% than a 5% downpayment mortgage at 5.5%?

What? Well, this is why you need an expert. I would venture to say that half of the mortgage brokers out there, haven’t done the math. Talked to Harvey McCallum of Strategic Mortgage Professionals who worked out, that in some cases getting a ‘no money’ down mortgage can be cheaper at a higher interest rate than the 5% down payment mortgage with a lower rate. Currently, in Vancouver, there are mortgage companies that offer a 3-year term mortgage with NO MONEY DOWN at 7.05%. When you do the numbers it may be cheaper to go that route then to take out a 5% down payment CMHC mortgage at 5.5%! Both mortgages bear a fee. CMHC’s fee is 3.75%; the no down payment mortgage carries a 4% fee. But then with CMHC you are limited to a $250,000 purchase (with GE capital the 5% down mortgage has just been made available on properties up to $300,000 homes). Yet, because of the ‘no down payment’, the higher interest rate mortgage can work out between $800 and $1,300 cheaper over three years than actually putting up 5% cash! Too good to be true? (Note: original article offers a small data table here).

So, there - no late night TV special, no worrying about strange clauses, no need to explore dark secrets. Just a regular mortgage, at a slightly higher face rate ... which actually works out cheaper. Now that is why you need an expert that knows - and cares.

New Mortgages Aimed at Self-Employed, Vancouver Sun, Dec 7, 2002:
Quote:One of the new mortgage products aimed at a market where buyers can’t prove their income via T-4 (as in self-employed) is a new mortgage by General Motors ... or its finance arm GMAC. This brand new product by giant GMAC (exclusively marketed through Mortgage Intelligence in BC - starting December 15, 2002) has some interesting twists, which will really help you if you have good credit, are a contractor, self employed OR do not want to have the hassle of providing income verification. (Yep!) This product requires no income verification.

Here is what is needed:
  • Approvals are made on 'stated income' although ratios must be in line.
  • Lender reserves the right to call employer to confirm employment but not salary!
  • For self employed, confirmation of business via Articles of Incorporation, accountant's letter etc. is sufficient.
  • Your credit has to be ok.
  • Self-employed individuals have to confirm that there are no outstanding taxes.
That's it! You can say you made enough money for the mortgage, no one will question it! I earn $200,000 last year ... no one will check. You can be a ‘somebody’. You can get a mortgage on the house you can afford ... even if you can’t prove you have the income to support the payments. This new product proves the extreme competitiveness of the mortgage market ... It also proves a perceived need? It clearly will help a growing segment of today’s society.

The down side? While 3 - 5 year terms and variable rates are offered, the new mortgage is available on the 'posted rate only'. So, you will pay about 1% more than the 'best rates' posted here below. Says John Ribalkin of Mortgage Intelligence: "This is the biggest change I have seen in 25 years. Thousands of people that are self employed or for whatever reason can't prove their income are now able to get the larger home purchases approved." Indeed.

Questions, Questions, Vancouver Sun, July 5, 2004:
Quote:QUESTION: Who offers 'unique' mortgages for the 'hard to finance' property?

ANSWER: Remember that Robert Frost said: "A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain." Today there are a hundred 'unique mortgages.' That's why you need to see a mortgage broker to explain it all. Here are some:

  1. The 'no proof of income' mortgage. For the self employed. GE Capital will insure a high ratio mortgage that accepts income as stated by you. No T-4's. It WILL accept it. However, make sure that your statements are consistent. If your application says: Income: $200,000. Profession: Janitor from 1990 to 2003, now self employed as professor at UBC ... They may not accept your application.
  2. The 'bankrupt mortgage': Xceed mortgage Co. offers a one year discharged bankrupt person with some re-established credit up to 95% financing. (Yep, at a higher rate)
  3. The '100% offset of rental income mortgage': Citizen's Bank will 'offset' the rental income of your investment property by up to 100%. In other words, if your mortgage, tax payments and condo fees are $1000/month and your rent is $800/month, then you will only have to debt service $200.
  4. The 'multiple choice' mortgage. Nova Scotia Bank's 'step program allows you to register an umbrella mortgage and underneath split it up into credit line/ 5 year term/ open term etc. pieces.
  5. The 'take one-add one mortgage'. First Line offers a product that increases your line of credit every time you make a mortgage payment in the same amount.

Mr. Jurock's reach went far and wide from BC into Alberta and beyond the border into the United States. The latter was aided by his close friend and fellow broadcast darling David Ingram. His business was offering "expert income tax service & immigration help to non-resident Americans & Canadians from New York to California to Mexico. Family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority." He directed all real estate investment inquiries from Americans to Jurock even if they wanted info on eastern Canada. Ingram's website and business ( has been taken over by his son since his death in 2011; however, there is much that is archived including videos of Ingram and Jurock together. In one from 2009, they talk about how they worked together on the first internet open-line TV broadcast in 1997. Although about an hour in length, this video is worth the watch because Ozzie explains that you can only make money two ways and how he applied that to his own RE marketing enterprise. He also admits to establishing the 'Real Estate Talks' forum ( in 1996 and mining it for email addresses via registration. Here is that video link:

I can't help but think that some day someone will write a book about Ozzie Jurock and the influence he likely played in BC Real Estate in the years from 1998-2012 especially if it all comes crashing down beginning in 2013. As a result, he would enter the BC pantheon of "characters" joining such notables as Amor De Cosmos to Bill Vander Zalm. I think Ozzie wouldn't mind that.

(Question: Would Jurock's ownership of 'Real Estate Talks' now explain why HAM's recent post on the actual price drop of Richmond home sales had first the images removed and then the complete post itself?)
05-30-2013, 11:04 AM,
RE: In the beginning was the word...
May 30, 2013:

I was on the hunt yesterday for information on a condo/townhouse development in Calgary that has an indirect tie to a SC property development that went belly up in 2010. This Calgary development is in an up and coming area of Calgary called Mission - if you are ‘on the edge’ this is where you want to be.

Back in 2010, the development was called “Lumiere”; however, French names are now passé and the developer who took over this project decided a fresh start was needed and a new name was in order and headed to …guess where… for inspiration? New York City!! Yes, Gibsons has its “New York Brownstone Inspired” townhomes (Island Vista) and Calgary has its very own “Tribeca.” Of course, In New York, Tribeca refers to an area of New York that is “the” place to live if you are an “oh so hip” actor or musician with truckloads of money. Oh, well, Calgarians can pretend.

The presales for this 82-unit Calgary project began Feb 10, 2012 and within 4 days were 60% sold and within ten months all units were gone. The complex is under construction and completion is scheduled for this December. The developer is private Vancouver company that according to the following 2011 CIR Realty, Calgary, web post decided Vancouver’s condo market was exhausted and pastures were greener on the other side of the Rockies:

Quote:Bucci Development Energized About Calgary’s Condo Market
Posted by Steven Phillips on Friday, August 26th, 2011 at 12:42pm.

Bucci Developments Ltd is a Vancouver based company that is setting its sights on the Calgary condo market. After realizing that the Vancouver condo market was tapped out, and that Calgary was experiencing a renaissance of sorts it seemed a reasonable move to Mike Bucci, the owner.

This isn’t the first venture into cowboy country. Bucci’s first development was back in 1998 when they put up the Lake Bonavista 350 unit condo project. The company also built the Xenex tower, and 18 storey condo tower located in the Beltline. That was prior to the recession.

Bucci’s current project is Next, a four story condo complex that the company bought out more than a year ago. Located in the Bridgeland area and overlooking downtown, Bucci got the land at a very good rate because at the time the condo market in Calgary was considered saturated. So far 78 of the 132 units have sold since they went on the market in February.

Other projects are also in the works, including an 82 unit project in the Mission district, located at 4th Street SW and 20th Avenue. Those units will go on sale starting in October. Construction will begin in February of next year with target completion date sometime in June of 2013.

I was poking around the Tribeca website to see if I could determine the date that Bucci took over this development and headed to the ‘News’ tab. Well, well, well…didn’t I find something interesting. Mr. Bucci just couldn’t resist adding this post since it makes him look so smart.

Quote:Posted on August 28, 2012
“Calgary – A Good Place to Buy” – Ozzie Jurock

Each week we receive a copy of “Jurock’s Real Estate Insider” facts by email. We always enjoy the read and respect Ozzie’s insight into the state of the Western Canadian real estate market and where it is likely heading. Last week’s email had a nice section on the Calgary real estate market. Here’s a bit of the information provided:
  • Calgary continues to buck national housing trends
  • The 1,936 residential units sold in July represent a 21% increase over July 2011 – WOW!
  • Year-to-date condominium sales are up 9%
  • Listings for both single family homes and condos are DOWN!
  • Average condo price up 6% from July 2011 to July 2012
Ozzie’s Major Point is: “Calgary is definitely in an upswing, driven by a bouyant economy, strong inward migration (from BC) and low real estate prices. This will continue. Good place to buy.”

He goes on to talk about the outward migration of people from BC to Alberta and Saskatchewan and wraps is up with a great line: “Values grow where people go…and people go where jobs grow!”

Check out Ozzie’s website ( for lots of great real estate market information and education.

Well, Ladies & Gentlemen, once again, the BC Oracle has spoken: WOW!

So, ten years ago, Ozzie was pumping BC’s west coast and Alberta money flowed in and last year he was pumping Calgary and likely BC money flowed in; so, what do you think Ozzie is pumping now, eh?

Let’s see, what does Ozzie say? Oh, yes - “Values grow where people go…and people go where jobs grow!” Hmm, my bet it isn’t in Canada.

Nope, went to his website and apparently in his May 23, 2013 fact sheet he recommends...Malaysia followed by Phoenix...guess, Mr. Bucci, you should get all your shots, visas, etc and start packing your bags. Remember, the Oracle has spoken.

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