Buying real estate with RRSP Walton claims! becareful, it's a ripe off!

[terry890]

I went to Walton seminar yesterday, don't ever invest in that company, it's a total ripe off, they are talking about you can use your RRSP to buy their land.

Walton's business model is to have investors buy farm lands and wait till the land get re-zoned. then sell the land to developers at a premium. if you check their audited statement, you see that the return is about 12% or so I can't remember the exact figure. Looks all good till you really dig in for all the good stuff.

problem number 1, their financial statement only showing the land that's SOLD, the land that's not sold, too bad, the investors may have to hold for many many more years.

Problem number 2, The investment is not liquid-tive means you can't get out till the land is sold to someone.

Problem number 3, this is a big 1, they add 300% or so on top of their purchase price then sell to the investors.

How can the investor going to make a decent return when investors are paying 300% over the market price for the land? you are more likely over paying for the land and stuck with it for a long long time.



http://www.waltoninternational.com/

 

[uglyducking]

Thanks for sharing the information.

Something it's worth to remember when attend this kind of seminar is to ask yourself, what's behind the curtain.

But indeed you can use your RRSP to invest in real estate, e.g use your RRSP money as mortgage lend to other investors and you can collect interest payment from the mortgagee.