In the beginning was the word...

[Skook]

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:

http://www.courts.gov.bc.ca/search_judgments.aspx

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 Canada.com network that includes the Vancouver Sun, The Province, the Calgary Herald, the Edmonton Journal, etc.). So, here is the link to that VREAA post:

http://vreaa.wordpress.com/2011/07/24/tw...ntentions/

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: http://www2.jurock.com/articles/archive.asp?authorid=1 and http://www.ozziejurock.com/media/ This is the link to his broadcasts (you can watch with RealPlayer): http://www.ozziejurock.com/insights/bctv.asp. 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 (http://www.centa.com) 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 (http://www.realestatetalks.com/index.php) in 1996 and mining it for email addresses via registration. Here is that video link: http://david-ingram.com/article.php/Juro...enWhereHow.

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?)