Is real estate passive?! We look at real estate investing strategies, ranking 15 different approaches from most active (fix-and-flip) to most passive (turnkey rentals, REITs, and syndications).
We explore the spectrum of real estate investment strategies, emphasizing that true passive income requires either upfront work to build systems or choosing inherently passive vehicles from the start.
The more you do yourself in real estate, the less passive it becomes—the path to passive income involves either hiring property managers, partnering with experienced operators, or investing in vehicles like MICs and crowdfunding that require minimal involvement.

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Is real estate passive?! We look at real estate investing strategies, ranking 15 different approaches from most active (fix-and-flip) to most passive (turnkey rentals, REITs, and syndications).
<ul data-stringify-type="unordered-list" data-list-tree="true" data-indent="0" data-border="0">
<li data-stringify-indent="0" data-stringify-border="0">We explore the spectrum of real estate investment strategies, emphasizing that true passive income requires either upfront work to build systems or choosing inherently passive vehicles from the start.</li>
<li data-stringify-indent="0" data-stringify-border="0">The more you do yourself in real estate, the less passive it becomes&mdash;the path to passive income involves either hiring property managers, partnering with experienced operators, or investing in vehicles like MICs and crowdfunding that require minimal involvement.</li>
</ul>
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The Podcast For Canadian Real Estate Investors.

The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio.
Show hosts Daniel Foch and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

The Podcast For Canadian Real Estate Investors.
The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio. Show hosts Daniel Foch and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

The Canadian Real Estate Investor

The Podcast For Canadian Real Estate Investors.

The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio.

Show hosts Daniel Foche and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

The Podcast For Canadian Real Estate Investors.
The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio.
Show hosts Daniel Foche and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

How to Build a Real Estate Portfolio That Actually Generates Passive Income

Nick & Dan explain Canada's Principal Residence Exemption (PRE) and Section 45(2) elections, focusing on how to protect tax-free capital gains when buying a second property. The discussion covers how capital gains work in Canada (50% inclusion rate), the PRE's tax-free benefit, and the critical Section 45(2) election that allows homeowners to continue claiming their former home as a principal residence for up to 4 years after converting it to a rental.
One exemption at a time: You can only designate one property per year as your principal residence, but buying a second property doesn't immediately eliminate the exemption on your first home
Section 45(2) election protects you: When converting your home to a rental, this election prevents a deemed disposition and lets you continue claiming it as your principal residence for up to 4 more years—but you must not claim depreciation (CCA) on the property
Change-of-use creates tax exposure: Without the Section 45(2) election, moving out and renting your home triggers a deemed disposition at fair market value, potentially creating a taxable capital gain even though you haven't actually sold

Nick &amp; Dan explain Canada's Principal Residence Exemption (PRE) and Section 45(2) elections, focusing on how to protect tax-free capital gains when buying a second property. The discussion covers how capital gains work in Canada (50% inclusion rate), the PRE's tax-free benefit, and the critical Section 45(2) election that allows homeowners to continue claiming their former home as a principal residence for up to 4 years after converting it to a rental.
<ul>
<li>One exemption at a time: You can only designate one property per year as your principal residence, but buying a second property doesn't immediately eliminate the exemption on your first home</li>
<li>Section 45(2) election protects you: When converting your home to a rental, this election prevents a deemed disposition and lets you continue claiming it as your principal residence for up to 4 more years&mdash;but you must not claim depreciation (CCA) on the property</li>
<li>Change-of-use creates tax exposure: Without the Section 45(2) election, moving out and renting your home triggers a deemed disposition at fair market value, potentially creating a taxable capital gain even though you haven't actually sold</li>
</ul>

How to Protect Your Tax-Free Capital Gains When Buying a Second Property

Canada's banking system is dominated by just six major institutions (the Big Five plus National Bank), which control over 80% of banking assets. While this concentration was designed for stability, it creates limited competition and flexibility compared to the U.S., which has thousands of banks with diverse underwriting philosophies.
Illusion of choice: Canadians feel like they have banking options, but are essentially rotating through six institutions that behave similarly in terms of rates, underwriting, and credit requirements.
Designed for stability, not competition: Canada's concentrated banking system was intentionally created post-Depression to prioritize safety over flexibility, which helped avoid failures during the 2008 crisis but limits competition.
Different bank personalities: Each of the Big Six has distinct lending approaches—RBC prefers "vanilla" borrowers, TD is systems-driven, Scotia is unpredictable, BMO is business-friendly, CIBC is mortgage-aggressive, and National Bank is regionally focused.

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Canada's banking system is dominated by just six major institutions (the Big Five plus National Bank), which control over 80% of banking assets. While this concentration was designed for stability, it creates limited competition and flexibility compared to the U.S., which has thousands of banks with diverse underwriting philosophies.
<ul>
<li>Illusion of choice: Canadians feel like they have banking options, but are essentially rotating through six institutions that behave similarly in terms of rates, underwriting, and credit requirements.</li>
<li>Designed for stability, not competition: Canada's concentrated banking system was intentionally created post-Depression to prioritize safety over flexibility, which helped avoid failures during the 2008 crisis but limits competition.</li>
<li>Different bank personalities: Each of the Big Six has distinct lending approaches&mdash;RBC prefers "vanilla" borrowers, TD is systems-driven, Scotia is unpredictable, BMO is business-friendly, CIBC is mortgage-aggressive, and National Bank is regionally focused.</li>
</ul>
<a href="https://www.bmogam.com/ca-en/products/exchange-traded-funds/?ecid=dw-F25GAMOrganicGAM1-BMUM14">Exchange-Traded Funds (ETFs) | BMO Global Asset Management</a>
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The Illusion of Choice: How Canadian Banking Actually Works

Nick & Dan discuss co-ownership structures for real estate, focusing on joint tenancy vs. tenants in common, and land lease properties. Joint tenancy means equal shares with automatic transfer to surviving owners upon death, while tenants in common allows unequal shares that pass to heirs. Land lease properties let you own the building but lease the land, offering lower purchase prices but with ongoing ground rent and lease expiration concerns.
Joint tenancy requires equal ownership and unanimous consent for major decisions, with automatic survivorship rights.
Tenants in common allows flexible ownership percentages and independent sale of shares, but no automatic transfer on death.
Land lease properties have lower purchase prices since you only own the structure, but require ongoing ground rent and the lease eventually expires.

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Deal Analyzer

Nick &amp; Dan discuss co-ownership structures for real estate, focusing on joint tenancy vs. tenants in common, and land lease properties. Joint tenancy means equal shares with automatic transfer to surviving owners upon death, while tenants in common allows unequal shares that pass to heirs. Land lease properties let you own the building but lease the land, offering lower purchase prices but with ongoing ground rent and lease expiration concerns.
<ul>
<li>Joint tenancy requires equal ownership and unanimous consent for major decisions, with automatic survivorship rights.</li>
<li>Tenants in common allows flexible ownership percentages and independent sale of shares, but no automatic transfer on death.</li>
<li>Land lease properties have lower purchase prices since you only own the structure, but require ongoing ground rent and the lease eventually expires.</li>
</ul>
<a href="https://www.bmogam.com/ca-en/products/exchange-traded-funds/?ecid=dw-F25GAMOrganicGAM1-BMUM14">Exchange-Traded Funds (ETFs) | BMO Global Asset Management</a>
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<a href="free 1 week trial for Realist Premium https://www.skool.com/realist/about?ref=436e57c928ad47ebaad079ca7e854843">free 1 week trial for Realist Premium</a>
<a href="https://app.realist.ca/">Deal Analyzer</a>

How to Build a Real Estate Portfolio That Actually Generates Passive Income

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