How to setup a real estate investment company in Ontario Canada?

[Brian Law]

How to setup a real estate investment company in Ontario Canada to attract foreign investors?

My business partner and I have been purchasing properties since 2008, mostly single family dwelling and some 2-6 plexes in Ontario. Recently, a group of wealth Asian investors approached us indicating interest in these sorts of projects in Canada, primarily due to higher yield (compared to their countries).

I have a few options that I am thinking about

• Setup an incorporation in Ontario/Federal with them being a shareholders (foreign)
• Setup an incorporation in Ontario/Federal (called it ABC Inc) and another incorporation (call it XYZ Inc) in their country with them being a shareholder. And XYZ becomes shareholders in ABC
• Setup an incorporation in Ontario/Federal and take their investment as a loan vehicle with a promise to pay xxx%/annum

I am looking for insights from individuals that have done this before. Most importantly, I want to learn about the procs and cons, and potential tax issues.

Thanks for your time.