Investing in real estate is different from stocks or mutual funds in that there are many more aspects to purchasing, holding and selling compared to paper assets. It therefore comes as no surprise that educating one self in all matters of real estate investing is much more necessary. Many times you will see someone come from another city or even country and try to promote their system of purchasing property. The prices of these weekend or even four day courses can range from several hundred to tens of thousands of dollars. Some seminars are even as high as $35,000!

The question then becomes how much should one pay for this secret information or what they claim is secret.  I have seen many successful investors start off by purchasing books, networking with other investors and spending up to $500 for two fulls days of training. This is adequate to start off on your first few properties. Anything beyond this is where you can expect to spend $5000 for courses but only after numerous transactions have occurred and you have a fair bit of experience and know what you want.

The most important telling sign of a scam at a seminar is if they have properties at the back for all of the attendees. They rarely work for the purchaser. That is not education but rather a way to make someone else wealthy.

This past week in Calgary has been a little bit colder than normal.  I often like to walk because sitting in front of a computer for extended periods of time is not something I have ever been able to do.  As I walked through my neighborhood, the roofs had snow on them which had not all been blown or melted away. I always look to the roof to see if there is even a little bit on top.  My motivation for doing so is not for aesthetic appeal or design but something much more ominous.

Houses used for to grow marijuana must be kept at high temperatures for growth to occur.  For this much excessive heat to be present in the house, it means any snow on the roof must be melted away. No snow on the roof means it has a potential to be a grow operation. Dark curtains are another indicator potential criminal activity is present.

Fortunately, I did not see any on my walks but I am always watching because these properties can adversely affect your community, lifestyle and values of any properties you own in the area. ALWAYS be vigilant if you see this and ask questions.

So you have purchased a rental property and have an excellent tenant who pays their rent on time and has excellent references. The question will inevitably come up as to who pays the utilities.

The answer is simple and clear. Since the tenant lives there and uses those services, they should pay for the heat, water,electricity, internet and cable. This is not to say that you cannot use a free DVD player or IPOD as an incentive for a tenant to move in. It means that your property will never produce positive cash flow if you include all of these essentials. Having said that, it is your responsibility to ensure the furnace is cleaned regularly (probably every two-three years), all the plumbing and electrical units are working and up to specified code. Also ensure that your tenant has all the energy efficient electrical bulbs they require.

For a multifamily property, the owner is responsible for all the heating costs and needs to pay for the common electrical usage such as hallways.  Separate electrical metering is strongly recommended for tenants in their suites.