Derek Moran ON: Expert Advice for Maximizing Your Real Estate Investments.

Real Estate for Real People

In this episode of "Real Estate for Real People," Tamara Stone and her husband Derek Moran discuss financial planning and real estate investing. Derek shares three $10,000 ideas for real estate investing and ownership, including bundling insurance policies, purchasing a last home within a trust, and allocating more of the mortgage debt to the rental portion of a duplex or multi-unit property to maximize tax deductions. He also emphasizes the importance of shopping around for insurance and getting quotes from different providers to save money on premiums. Tamara and Derek also discuss the importance of tenant's insurance and encourage listeners to sign up for Derek's optimism newsletter.Derek Moran is the owner and founder of Smarter Financial Planning in Kelowna BC. He has worked in the financial industry for over 26 years and is a regular contributor to the Globe and Mail, National Post, FP Magazine and many others. His goal is to provide unbiased, comprehensive, high quality information to clients so they can make informed decisions. He specializes in financial planning in the truest sense, hourly-based, objective and qualified advice, retirement, and tax & estate planning advice.What we discuss:[00:04:57] Derek shares his first $10,000 idea, which is to shop around for house insurance and life insurance to find the best rates. He recommends using companies like Mola Monex or Sonnet to get binding quotes quickly.[00:07:31] Derek briefly discusses mortgage insurance, which is just life insurance. He advises against getting it from the bank and instead recommends getting simple term insurance for the shortest term possible, as it is much more cost-effective.[00:01:25] Derek explains his job as a comprehensive financial planner, focusing on when clients can retire and what it will take to get there. He also touches on other areas such as tax reduction, life insurance, and debt repayment.[00:08:46] Derek and Tamara discuss the ideal term for life insurance and the importance of keeping costs down while still having adequate coverage. They also talk about the drawbacks of mortgage insurance and the benefits of having a simple term 10 coverage.[00:15:59] Derek suggests setting up a trust to avoid probate when downsizing and retiring to a smaller place. He explains the benefits of having an alter ego trust for single individuals and a joint partner trust for couples.[00:14:52] Derek advises checking into paying insurance premiums once a year instead of monthly, as it can save up to 5-8% on life insurance costs. He also suggests consulting with a tax professional about having life insurance owned and paid for by a corporation for tax benefits.[00:16:51] Derek explains how setting up a trust for your last home can save you money on probate fees, but also adds complexity to your life.[00:20:05] Derek suggests allocating financing for rental properties differently to maximize tax deductions, potentially saving thousands of dollars.[00:24:15] Derek recommends getting separate mortgages for the rental and personal sides of a duplex, paying off the personal side first and renting it out quickly, while paying off the rental side as slowly as possible.[00:26:11] Derek shares how he was able to get tenants insurance for his daughters for only $4 a year, saving them $600.Episode Resources:Derek Moran | Website Derek Moran | LinkedinDerek Moran | Facebook To learn more about the Stone Sisters or to get in touch, visit www.stonesisters.com