How one Calgary investor bought foreclosures for a new Airbnb Business

Our client recently bought 6 condos in one building to operate as his new Airbnb Business. This recently retired accountant crunched the numbers into a solid business plan and took action. His idea became his reality. We all have great ideas, and I’m sure you’ll have some outstanding ones today. Maybe even while you are reading this article. But few of us take action. Many of us tell others about our great ideas in the hope that they will take action and then share the success with us because it was our idea. Good luck with that!

The two main points of this article are that you have to take action yourself, and there are opportunities in Real Estate to create a business for yourself.

Our client bought 6 condos in the same building, and only a few were actual foreclosures. The other condo deals came about from our due diligence on his behalf, leading us to other motivated sellers. He now owns several similar units at the same address. And only has One Condo Board and One Condo Management Company to deal with. And a single set of Condo Documents. One set of Bylaws, One Reserve Fund Study, One Reserve Fund Budget, One Monthly Board Meeting, One Annual Board Meeting, and other unforeseen issues that may pop up from time to time.

He also gets to streamline all other costs to improve and manage his portfolio of condos at a single address. All by taking that first step after the idea popped into his head.

What’s the worst thing that could happen, and could he deal with it? That question should be at the top of everybody’s list when evaluating a great idea. The worst thing that could happen in the case of any business is to have no income for whatever reason. No income is only a problem if you have debt. No Income, No Debt, No Problem. It’s not likely you would lose 100% of the revenue potential. A solid written business plan will tell you your Break-Even point based on debt service, operating expenses and income. Once you have a Break-Even calculation, you will know when your business starts to lose money. So, the worst that could happen is you start losing money. How much could you lose, for how long and could you deal with it? Making sure you have an excellent downside cushion helps you sleep at night. On the other hand, if you have no down-side cushion, your motivation to get it right becomes very focused.

We have many clients that go into business for themselves with Real Estate in Calgary. And they all started with the first one, and the first one could be any type of property that generates income.

They took action on their idea. They focused on their goals and ignored the jealous and envious dream stealers. Taking action is taking a leap of faith in yourself. Don’t let yourself or anybody else hold you back. Get your Great Ideas down on paper, crunch the numbers, find your break-even point and decide if you can deal with the worst that can happen.

Opportunity is knocking; answer the door! We can help you!

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Three important things to know when buying a foreclosure in “As Is” condition from the banks or the courts are:

  1. Buyers take all the risk
  2. Lenders typically won’t finance “As Is” properties
  3. “As Is” Includes Nothing.

Buyers take all the risk in exchange for a discount on the price.

That would be the basic premise of buying a foreclosure. The seller is, in most cases, the bank or the courts. The foreclosure sellers have not lived in the property. They have limited knowledge about the property, so they use “As Is” to offset the lack of information a traditional seller would have an offer to the buyer. It’s up to the buyer to use all their own resources to mitigate the risk. The most valuable resource for buyers of Alberta Foreclosures is an experienced real estate agent like Jerry Charlton.

Lenders Do Not Like to Mortgage “As Is” Purchases.

Mortgage lenders have two risks they lend against. One is you, the buyer, and the other is the property they get as security. Banks like to take almost zero risk in exchange for low mortgage interest rates. It’s not impossible to finance foreclosures, but it is for most people. Courts will not consider any Offers To Purchase a Foreclosure with conditions like financing or home inspection. Banks are a bit more flexible about conditions. The rule of thumb with foreclosed properties is Cash Is King. Whoever makes the best Cash Offer usually gets the property. This is where a great mortgage agent with access to many different lenders, including the traditional banks, can help you. Renting money is easy!

“As Is” Includes Nothing.

When you buy a home, you usually add into the contract the Stove, Fridge, Dishwasher, Washer, Dryer, Window Coverings, etc.  Not so with foreclosures. Again, the sellers have minimal knowledge about the property, let alone the appliances. Therefore, the sellers of foreclosed properties do not include anything in the sale. What this means to a buyer is if there is a stove, fridge, etc., in the property on the day of the “As Is” possession, then the buyer gets to keep them. If the property is vacant, the appliances usually remain. If the property is occupied, the story could have a different ending.

A real estate agent like Jerry Charlton is the most essential resource a foreclosure buyer can have. He has helped buyers and investors purchase foreclosures for almost 20 years.

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In the coming months, a lot of people will be searching for Alberta Foreclosures for sale. Banks are raising interest rates on mortgages. Inflation is out of control. The stupid Russian invasion of a free country is wreaking havoc around the world. Oil prices are going through the roof. A recession is on the way and will be sending a lot of people back to the home rental market. 

So where does the smart money go in good times and bad? Real Estate that's where, just ask Warren Buffet, Bill Gates, or Jeff Bezos. Billionaires love Real Estate. You can even become a Nut Case President of The USA with the help of Real Estate!

Anyways back to Where Do You Find Alberta Foreclosures For Sale? Right here on my website, we feature all the foreclosures for sale today. New listings get added daily. We can also send you the new listings as they happen which moves you to the front of the line. Quickly evaluate the new foreclosure listings from the comfort of your email box.

But if you insist on finding foreclosures the hard way and after the smarty money has had a look, then click some of the links below to get started.

Calgary Foreclosures

Bank Owned Foreclosures

Court Ordered Foreclosures

Airdrie Foreclosures

Okotoks Foreclosures

Searching and Finding Foreclosures For Sale is just the first step in the process of buying and owning foreclosures. We are here to help you whenever you are ready. Just call, email, or even text us. 

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All Calgary Home Sales YTD
The Calgary Real Estate Market for May 2022 continued to favour home sellers. Even with higher mortgage rates, higher resale inventory, and wars, home sales in May 2022 are slightly higher than one year ago. The market has seen a large number of real estate investors selling off rental properties to cash in on higher prices and strong demand. This is causing an equal number of renters to scramble for a dwindling number of remaining rental properties. Ontario and British Columbia home prices are driving large numbers of people to more affordable Alberta Homes. Banks willing to lend at higher values is pushing home prices in Calgary higher, but still more affordable than in many other Canadian cities. Whatever market we are in you are always better off working with an experienced realtor that knows how to avoid problems. We have been helping Calgary Home Buyers, Home Sellers, and Real Estate Investors for over 20 years!
Calgary Homes Sales Chart 2022
Detached Home Sales YTD
Detached Single Family Home Sales in May 2022 fell well below last May's sales. Why? The biggest reason is a lack of sellers of good quality homes at fair market prices. It's a seller's market. Here are a few facts about single-family homes in Calgary. There are no condo fees. You own the land the house is built on. You get a yard. Garages are very common with detached homes. Some homes have basement suites for In-Laws or renters. Most neighbours are also owners. You have more control over the ongoing value of the property. New home builders would rather build townhomes and apartments, making it very difficult to flood the market with single-family detached Calgary Homes. Very low turnover in detached homes means stable neighbourhoods. The very best homes might come on the market every 30 or 40 years. We see this quite often. Those homes are like flowers that bloom once every 35 years but only for 15 or 20 minutes. You need a great experienced Realtor® like us to make sure you get your chance at these gems.
Attached Home Sales YTD
As we consider the chart below for attached home sales we can see a very healthy seller's market enjoying the overflow from the detached segment of the Calgary Real Estate Market. Keep in mind this category includes some beautiful infills in the inner city of Calgary and not just row-style townhouses. With the low inventory of rental properties many new real estate investors are snapping up townhouses in well-managed great complexes throughout Calgary. Buyer due diligence and the opinions of highly qualified real estate agents will help you avoid buyer remorse. Shop wisely and work with experts!
Condo Home Sales YTD
Do you hear that? It's the sound of Calgary Condo Sales snapping back. Inventory is up and sales are down. It's a tough market that has been propped up by Detached Homes and Attached Homes. When you buy a condo you get a lot more than meets the eye. It's like getting married and inheriting in-laws you could do without, but are stuck with. Do your own research on buying and owning Calgary Condos before you step foot in one. You will hear about Condo Boards, Condo Documents, Reserve Funds, By-Laws, and much more that come with every condo and could be a blessing or a nightmare. Buyer Beware and working with a real estate agent that knows Calgary Condos is a must to avoid regret, anger, and missed opportunities. No real estate market has more pitfalls and hidden traps than condos. A simple google search reveals what a true minefield some condo owners have stepped into.
My Thoughts Today

Hello, June 2022. Did you know we are only a few weeks away from the longest day of daylight of the year? That's right folks by the last week of June the days get shorter. The sun comes up and goes down on a shorter schedule until we get to the shortest day sometime late in Dec 2022. What does this mean for the Calgary Real Estate Market? Nothing that I can think of, I just thought you might want to know.


So let's see, today the Russians are still killing people without cause in Ukraine and probably all over the world as well. The midget Putin is still breathing, which is a shame. The EU is helping Putin kill kids by buying oil from Russia. Hey, Canada Here! We have oil to sell you know. There have been many Putin's in history and often you read how those close to those historical Putin's regretted not putting a bullet in the heads of their Putin's. Hey all you close to Putin, have no regrets!


Another day in the USA and more futures are snuffed out in senseless school shootings. World mouthpieces offer canned responses on thoughts and prayers. Guess what your thoughts and prayers are not working. Taking the weapons of mass destruction out of the hands of kids would be a start. Anybody that has ever been a kid knows that mental issues are a large part of growing up. Not a time to be able to buy machine guns. How smart were you at 18? Would you have sold you a machine gun? Common sense is a myth. Thoughts and Prayers are not actionable. I wonder how long before I can just copy and paste this? Sad.


Avoid the Noise! Get off your phone, turn off the TV, and stop reading online BS. Get outside and enjoy the warm weather, sunshine and happy people! Take a road trip. Take a day trip. Visit a small town outside the City. Take a Hike! Golf. Read a Great Book. Relax in your backyard. The more involved in other things you can get, the less space for the BS of the world to cloud your mind. Take a break! You Deserve It!. Till next month.

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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.