All Forum Posts by: Eric S.

@Hai Loc thanks for the response. So flipping has less taxes to be paid then buy and hold? How do I prove its business income? Also how much taxes are paid on the business incone route vs incorporated? Also, I have a renovations company and we will be don't all the work. So if I invoice my friend for the work and he can write that off to prove less profit, combined will we pay less taxes? Or will the tax's I pay for my job just equal out to being the same thing as business income on the flip?

@Christopher Pickup thanks for the good info. That's what I needed to know. So I guess if we pay ourselves in dividends and are responsible enough to keep money aside for taxes that would be the best option. Do you know how much tax percentage I would need to keep aside?

Hi,

I'm currently investing with a friend who has the property under their name. We are looking to avoid as much tax as possible as we are planning to flip. From what I gather is that incorporating allows us to pay less taxes and so we could transfer the title to the corp. But how do we get our money to use? Does it have to stay in the corp? If so do we just spend from the corp account? And how much taxes would we have to pay by selling normally vs incorporated? We are looking to continue flipping after this and we need a way to structure this.

Also, I own my own property with my wife and our house has doubled in value. I'd like to take equity out to purchase income properties but we aren't approved for it. How am I able to tap into that equity? We also only owned the house for a year so we don't have much principal paid down yet.

Any help would be great. Thanks.

Thanks for your input Hai. Yes, we plan to continue into the future doing this so it will, hopefully, not be a 1 time deal. Also, when speaking to our lawyer about drafting a partnership agreement he said yes he can make it for us but there's no guarantee that anyone will stick to it. Then I'd have to go through litigation which will be very costly. Do you still feel that that is the better approach to this? 

Hi BPer's,

So I'm attempting to take on my first investment (fix and flip). I have 2 other partners on this project. 1 of which is my current business partner in our renovations company. The other is an investor I found online.

Our plan is as follows:

I am also a realtor and will be finding the deal as well as selling it. I'm also doing the renovations and funding it.

My business partner is doing the renovations with me and funding it as well.

The investor is getting the mortgage.

I just bought my first home and am not able to get another mortgage which is why I found the investor.

My fiancé will not allow me to be on title for the investment property because she is worried we could lose our home if things go wrong.

The investor is totally fine with taking all responsibility with the property and being the sole guarantor.

So I'm looking for a way for all of us to ensure we have some sort of ownership of the home with only the investor being the guarantor so my fiancé would be at peace with this.

I am considering incorporating and having us 3 as directors but only the investor as the sole shareholder.

Does this seem correct? Please give me some advice so I can get my fiancé on board with this.

I'd also like to mention I'm in Toronto, Canada. So our laws may be a bit different.

I c

Thanks your the response. So I've actually had an investor reply to me yesterday and I was thinking I need it in a contract written by a lawyer as you mentioned. Do you know what something like that would cost? 

Hello all,

First post here. I'm looking for advice on finding an investor and if my method of partnering up seems reasonable. 

I'm a contractor and a realtor. I have purchased my first home and completely renovated it from top to bottom (3 floors). I have significantly increased its value and am looking to venture into flipping. 

What I'm looking for is an investor to provide the down payment as well as his/her name on title along with mine. They will also be paying half the monthly expenses such as mortgage and utilities. 

What I'm providing is all the labour and materials for renovating (which I will have alot of it covered with my commission) and the other half of the monthly expenses. 

Once sale is complete each of us get our initial money invested back and then the profits will be split. 

Do you guys think this is fair? Also, do you have any tips on finding such investors? 

Thanks