EP 31 - RRSP Mortgages and Financing with Valden Palm | CWHO - Commonwealth Home Ownership
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EP 31 – RRSP Mortgages and Financing with Valden Palm

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In this episode, we sit down with veteran real estate investor Valden Palm and discuss how we can use the immense, untapped potential of RRSPs to finance your next real estate project or invest in mortgages for superior returns. 

Valden Palm is an Alberta-based, Edmonton-born and raised real estate investor, consultant, and mentor/coach with many students who have become real estate superstars in their own right. Valden started building his personal real estate portfolio in 1995 and has continued this building process for himself and his investor clients, earning his title as the original RRSP educator teacher known as “Mister RRSP”

As a trained Architectural Technologist, Valden has always been immersed in the construction industry, both in the commercial as residential sectors. It was a natural progression that his love for architecture and beautiful homes would lead him to seek out and master the real estate investing business. He is very much a student and master of “the art of the deal”.

His many man-hours spent on his real estate education serve him well in owning and managing well-selected pieces of property, minimizing risk, and maximizing profit. If the numbers don’t work and the property doesn’t meet his high standards and criteria, it’s a ‘no-go’. It’s that kind of unemotional, and objective analysis that his clients have come to trust and rely upon. He truly searches for and practices the Win/Win/Win philosophy day-to-day.

Valden has devoted much in the way of resources to develop and nurture his passion for the real estate business. He is a true “Transaction Engineer,” and is generous with sharing his time and experience with others. It is from this passion that his knowledge and experience with  RRSP financing was born.

Valden has been featured in Moneysense Magazine, a prominent contributor to REIN (Real Estate Investment Network), ROB TV (Report on Business), and local Edmonton business magazine Business Edge.  

If you’re dissatisfied with your current RRSP investments and want to learn how to generate double-digit returns, or you’re an investor who wants to learn how to use RRSPs as a financing vehicle, this episode is for you!

Show Notes:

  • Valden discusses his background and how he got into RRSP mortgages
  • Valden is revamping his RRSP course to be released soon
  • You’ll need to move the RRSP “in kind’ to an RRSP Trustee from your bank in order to invest in mortgages
    • You may encounter some resistance to this
  • Your bank RRSP returns might not be as good as you think after accounting for fees
  • RRSP borrower pays the fees on the loan, not the lender so the lender gets a true return on the face value
  • Olympia trust is the major trustee that handles a majority of the RRSP mortgages in Alberta
  • RRSP mortgages can only be borrowed or lent to someone who is not related and at arm’s length from each other
  • Want to look at $25,000 on a mortgage and up
  • Has to be attached to an actual piece of real estate
  • Goes into an example of borrowing an RRSP
  • Goes into RRSP swapping and why it’s a bad idea
    • Can risk collapse of RRSP and taxes and penalties incurred
  • RRSP lending has to be to someone with whom you have already fostered a relationship; otherwise, you run against SEC regulations
  • Goes into screening questions for your borrower
  • Cannot take a fee if you’re assisting someone to set up a self-directed RRSP mortgage
  • Careful to not overleverage the property you’re lending against
    • 85% LTV provides a safe margin of safety in this market
  • Goes into the one criteria where you can own real estate inside your RRSP
    • Gains from property acquired in this manner is also tax-deferred
  • The lender should know how the borrower plans to pay back the funds
  • Look out for Valden’s new RRSP Mortgage course in the next 60-90 days
    • Students will get personal coaching from Valden and to guide them to get their first RRSP loan as well as ins and outs of various uses of RRSPs
    • Listeners of CWHO will get a special discount on Valden’s course!
  • Valden’s Contact Info:
    • 587-937-1600
    • valden16@gmail.com

Be sure to subscribe and check out all of the CWHO podcasts at www.cwho.ca

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