All Forum Posts by: Roy Cleeves

If you may move to Texas in the future, then sure, why not get some equity there.  Your $100k will go a lot farther there than it will here and you can probably create cashflow with a purchase there as well.

Do check into what the tax implications will be and also realize that the USA market is different and may not appreciate the way that the Canadian Market has appreciated.

I have two homes in Florida that I paid $80K for and they might be worth $250k now.   At the same time, I bought two townhouses in Kitchener for $250,000 which are now worth $800,000. 

So, it depends upon your plans and your goals, yet you are not wrong with whatever you choose.

Good luck.

Hi Guys:  I have some of each.  Here is what I see.

Personal Name:

Advantage:  If you keep them all in your personal name then you don't have extra accounting or the extra costs of having a company tax return to do each year.  Also, it might be easier to finance a property as you can move into it and have it as your primary residence and put as little as 5% down payment.

Disadvantage:  If you are sued for something to do with that property and it is not covered by your insurance then it can be on you personally.

Incorporation Name:

Advantage:  Easier to pay on to your kids or sell to other people as you sell or bequeath the company and the properties go with it.  So no taxes to pay at that time of transfer, the company simply continues on.  Also, once you have a number of properties in a company you then have a portfolio that you can use for Commercial Financing which may allow you to refinance at a greater loan to value to pull out cash.  Liability is limited to the company that owns the property.  You may be able to buy cash flowing properties without so much dependence upon your personal income.  This is part of commercial financing advantage.

Disadvantage:  You may pay a higher rate for your financing because of it being a company.  You may also have less options for insurance when in a company name - I noticed that more in the USA then in Canada.

I bought my personal home and my first 3 rentals in my personal name.  Now, all new purchases are in my company.  Mostly for the estate planning aspect of it.

Great Question and Best Wishes!

I agree with Stevo and Chris.

If there is a conditional offer then they can back out at any time and blame it on the condition.

In the past when we were accepting conditional offers (many years ago), I was representing a seller and the people who bought wanted to back out and to be sure to cover themselves, they did a home inspection and then blamed it on the home inspection not being satisfactory to them even though the house was fine.

Best to move on and get your Next Buyer!

Best of Luck!

@Josh Bartlett

Hi Josh. I use the Coastal Oasis Team out of Sutton Realty in Halifax.  You can Google them 

They are investors and so am I. 

Feel free to direct message me and we can talk about multiplexes in HRM. 

@Chris Baxter

I am getting those now and am happy to help people and pay forward from my success.  It is much more helpful when those people have their goals in mind so that I can help in a guided way.

Best to sell it and keep the cash. 

Generally the cash flow calculation does not include interest expenses on the down payment. 

Ultimately you get to decide what your definition of cash flow is. 

Good luck and pick what works for you

As long as you are putting the funds back into more real estate it would be fine to sell the one in Windsor.  Especially since the tenant is not paying. 

Hopefully that will give you funds for your down payment on property #3. 

And you can probably still refinance property #1 for down payment on a new property. 

Either way.  Good Luck. 

I have found that they can move some capital gains taxes to later years by doing a Vendor Take Back.

I am not an accountant so I don't have the details on it, yet Sellers have advised me that they don't mind doing a VTB since it will delay taxes to another year and maybe save some money then.

Hi Dexter

I have used virtual and local assistants for my Real Estate Business.  There are advantages each way.

Regardless of which you choose, it is a good way to go!

Good luck and feel free to connect with a colleague request if you want to chat more.