Any Canadian have any experience with JV cashpartner from states

[Aditya Soma]

I have a cousin from states who's interested to invest with me in Canada, he would like to bring in the cash and I will take care of rest, so I'm trying structure the partnership right  so both of us can befit from it.

I'm Just wondering if any Canadian friends had experienced similar situation? if yes please provide me the details like

how did you structure your deal ? did you choose Corporation or Join Venture agreement and why?  how does taxation works for US partner?    

any suggestions/comments on JV with states partners I would appreciate a lot.

 (Canada, Ontario, Toronto, Windsor - Just key words to reach everyone Canadian BP members)

[Hai Loc]

I would always suggest you seek this kind of advice from attorney and tax specialist..

But this is what I will tell you from my experience in Toronto Ontario Canada

You set up a corporation to own the property.. You will have an agreement within the corporation that all capital invested will returned first to all investors.. Then you structure an equity split portion on which parties received what %.. whether its 50/50 etc.. You can base this on how good the deal is in terms of acquisition cost and cash on cash return. You can implement as many agreements on restrictions, conditions or whatever under the corporation to tailor to your project.

I experience this type of structure with land development and building construction deals..  But this particular concept can be used in ranges of projects.. Margins has to be high enough for it to be worthwhile on both sides..  turnkey investments usually do not work..

I have no experience in Americans getting taxed in Canada..

Limited Partnership may work as well vs a Corporation but consult an attorney on liability differences

Hope this helps Happy investing