All Forum Posts by: Leon Doucette

Thanks for all the great info, we have scheduled a meeting with a lawyer for next week. Looking to open up a member managed LLC. Let's get this party started. Thanks again

Hello BP! So glad I embarked on this real estate Journey. At this point in the game I am looking to learn as much as possible about the right business entity for my situation. I have found a partner who I have worked with on numerous Construction projects as an electrician. He has the capital to fund 100% of our projects. We have agreed to establish a company with 50/ 50% ownership. His only responsibility is to completely fund the total cost of the project. My responsibilities are: manage day-to-day operations, project manager / coordinator,GC, and all costing and budgeting for projects. At this point we are not looking to add any extra members except the two of us. We are getting ready to set up a meeting with the lawyer and a CPA. Our exit strategy at this point is to buy renovate, and re sell. We are looking to form a company that we can use too liability protect our personal assets and hold capital until reinvested. We would like to be able to pay ourselves after completion of a project by way of a dividend. Also our second option as an exit strategy is to use BRRRR and place asset in separate holding company.

Most of my education comes from webinars, podcast, YouTube, and audiobooks. Just finished Garrett Sutton's book Start your own corporation. GREAT BOOK! But it's US based and there is not a lot of audio books out there on Canadian business entities. The book had a lot of great points in it. So I guess my question is I'm looking for the Canadian equivalent to an LLC which is member-managed. From my research it's a limited company. If anyone has any material references which will help with my research. Or just some guidance on the subject would be greatly appreciated. I would like to be well-versed before our lawyer appointment. Thanks in advance.

@Elijah Williamson first off I'd like to say welcome to BP. Just like you I'm new to real estate as well. I am construction electrician and throughout my years in the business have met some great people. Two years ago I did a huge restaurant job for a guy who owns a chain of restaurants in my area. While doing these restaurants I got to know the owner very well. He was heavily involved in the construction of the restaurant and we work together very well. We have just sat down and hammered out a deal where we are going to purchase a piece of property and build a fourplex on that property. His only responsibility is to do the foundation for the building and to completely Finance the project 100%. My responsibilities are project manager, general contractor, and overall construction of the project from start to finish including all permits necessary. So I guess to answer your question, what I look for in a partner it's someone I can work with well. Someone that's easygoing not a high-strung personality, someone that has the skills to compliment mine, and most importantly someone I can trust and that I know has my back just like I have their back.

The issue I'm having right now is trying to figure out which business structure or entity to use for our partnership. We are planning to build and hold rental properties trying to structure our company with me as a 51% and him at 49% leaving all business decisions in the end up to me. Good luck and feel free to reach out anytime.

@Huong Luu thanks for the advice. I will be sure to include items mentioned. We did not jump on the deal in question because all the items were not in place. I agree 100% all responsibilities, exit strategies, contingency plans, and financing issues need to be labelled out in the JV agreement so there is no question in regards to the issues that could arise. I am not looking to buy my first property until I am 100% ready. Thanks to all the great folks on BP I am getting closer to achieving my financial goals. Please keep the advice coming!!!

As always Chris thanks to for tip I have looked at the site and it has gave me some direction.

@Paul Jollimore for sure my friend we have listed all costs associated with the rehab as if we were independent outside contractors on this. We did this to show our contribution to the project and what outside contractors had to be brought in and their cost as well. Any feedback is greatly appreciated thank you

Found a great flip property with lots of potential 2 hours away from my living area. After running the numbers and a discussion with my mentor, decided to do a walk-through to see the property. All look as expected property has been sitting for quite a few years needs a total rehab. Being a construction electrician myself this is not an issue. The issue is financing and I need to bring on a partner. My partner is also in construction as a carpenter. We have agreed to work together and finance this project 50/50 as well as sharing in profits 50/50. I am a rookie and just starting out in this business. I want to have everything labelled out in black and white in regards to responsibilities on this project. Would like any advice on regards to any contract stipulations, items that should be included in the contract. Also I live in Halifax Nova Scotia and if anyone has a good reference for a lawyer to draw up the contract I'd be interested in that as well. This is my first time and I'm just looking to do things right.

@Shrey A. As previously stated I started a Rich Dad Poor Dad which was the eye-opener for me. From there I read Brandon Turner's buying properties with zero or or little money down, Ozzie Jurock real estate in Canada. But the biggest part of my education has come through BiggerPockets webinars which I participate in weekly, forums full of great people that are willing and able to answer your questions. At this point I am reading books on accounting and tax planning in Canada. There's a few steps that need to be in place before jumping in to this business we get closer to our goals everyday.

@Peter M. I will look into this and see if I can find out more about property. Thanks for help

@Chris Baxter property is located in Nova Scotia. Going to get my agent to check it out and see if she can find out more about it.