All Forum Posts by: Brian Dean

Hey Noah, don't believe he's on Bigger Pockets, but my realtor is Cam Walker with Oakwyn Realty and I'd highly recommend going with him.  You can just google him to find him.  Hope that helps

Hey Stephanie, 
Cashflowing here in Vancouver is very difficult.  I know one person who has a 3BR apartment, and rents out the two extra bedrooms to exchange students.  It pays decently well, although he also has to provide dinner for them.  I doubt it covers his mortgages payments, but helps a significant amount.  Apart from that, I think house hacking in Vancouver, if you have enough for a down payment, can help offset your mortgage costs if you're willing to live with others, but won't work in a traditional house hacking way of having a break even or cashflow positive investment.  Unless you put a larger down payment, as Chris mentioned. 

Could you get a short term construction loan, then finance on to a regular mortgage afterwards?  Not sure if this works, just a thought

Thanks Roy.  So the investment partner was willing to put all the money down and qualify for the mortgage, if you found the deal and handled all management, with a 50/50 split of ownership, done in a corporation.  Is that correct? 

I would love to hear from some Canadians that have done Joint Ventures and/or Partnerships, specifically when one person provides the cash and financing ability, and the other partner finds the deals as well as oversees all management aspects.

My specific interest is in how people have structured their equity agreements if one person is providing the money and ability to qualify for the mortgage, and the other person will be finding deals, arranging everything, and overseeing all ongoing aspects of the property. In my situation I am looking for long term holds, not necessarily reno's. Small multi-families. With the aim to build a portfolio over time with a financing partner.  

What has worked for your partnerships? Do you usually do 50/50 splits? Or do you find the person putting down the equity usually wants a larger percentage if it isn't a labour intensive property like a fixer upper or BRRR?

Are there specific resources that you'd recommend in regards to partnerships or joint ventures?

Also, in Canada, did you create corporations for your partnerships?  What tax structures did you find most advantageous?  Did this vary based on the size that you aimed to grow to?

Are there creative business structures that you found worked well?

I'd love to hear from a bunch of people of what approaches and structures worked (or didn't work).

Thank you

I have a similar question, and would love to hear from some more Canadians with experience in this area.  

My specific interest is in how people have structured their equity agreements if one person is providing the money and ability to qualify for the mortgage, where the other person will be managing the property day to day. Long term holds, not necessarily reno's. Small multi-families. For example, are JV's often 50/50 split, or do you find the person putting down the equity usually wants more percentage if it isn't a labour intensive property. Are there creative business structures that you have found that work?

I'd love to hear from a bunch of people of what structures worked for them (in Canada) when one person is actively finding the deals and overseeing them, and another brings the financing.

Thanks

Hi there,

I have a couple investment properties in Windsor Ontario, but am now starting to see where else to potentially invest.  I'm looking into Winnipeg at the moment, and was wondering if anyone here currently invests there.  Would love to hear your thoughts on the city as a whole, areas you like/dislike, any things to look out for as someone who hasn't invested in this province before, as well as recommendations of realtors and property managers.

Cheers,

Brian

Hi Alex, I tend to agree with Windsor at the moment that it's now overpriced.  A couple years ago I bought a couple properties there and the numbers made more sense.  There are still some decent deals, but no great ones anymore.

Hi @Julie Toh, I'd be interested in your recommendation of a CPA with real estate expertise in Vancouver.  Do they fully specialize in this>

@Kim Wu

Glad it was helpful!  For my answers below, best to check with a tax lawyer or accountant, but I'll let you know what I think is correct as a non-professional.

By passive income, I believe it is referring to money made in a corporation through investments, dividends, interest and 50% of capital gains.  So if you were to buy an investment property, it would generate rent, which is seen as passive investment.  It's not about how much you make, it's about whether you are a company creating jobs, or if you're a company investing your cash and generating income from it. 

As far as I know, if you were to buy the rental property in your other company, on your taxes the investment income would still be in a 'passive' category, and taxed differently than your primary business.  So it doesn't particularly help to buy through your active company.  

In your example of a passive organization, if you generated $200,000, and left $150k in the business and took out $50k, the whole thing would be taxed at 50%, however you would get a rebate of 30% of the $50k when you took it out, so the $50k effectively was taxed at 20% and the $150k left in the business is taxed at 50% (with potential for future rebate if you take it out as a dividend). 

The details are far more complicated, and I believe there is a $50,000 passive income threshold.  But you'll need to consult an expert.