Real Estate Investing

Profit From Flipping Homes In Canada Now Taxed As A Business

ID-100206797Is flipping homes a business or is it capital? I’ve been talking about this for many years about how this is a big mistake that people have been making.

When you buy real estate, the intent behind the acquisition is very important and documenting that intent is even more important. If you are buying a pre-built condo and your intention is to sell it the day it opens up, you’re now in the business of buying and selling real estate and that is not a capital increase – that is an act of business.

Revenue Canada is starting to crack… Continue reading

Is It A Bad Idea To Hold Real Estate In A Corporation?

holding real estate in a corporationI recently read an article (that I won’t link to) that was written by a tax lawyer as a case against holding property in a corporation. I’m not sure if he is an accountant or a lawyer but I believe he is a tax lawyer because his perspective is not unusual from that particular camp.

“Don’t hold real estate in a corporation, the rates are higher if you do it that way! You should be using other types of trusts, partnerships, joint ventures or holding it personally.”

By most considerations, this appears to be a perfectly rational position to take… Continue reading

How To Stay Profitable During A Tough Real Estate Cycle

real estate investing

This article is a response to a question that I received via email from a reader asking how to stay profitable during slower real estate cycles. As I went to reply I thought that this might be a good topic to share here with you as well.

Many people are quick to sound the alarm as soon as soon as real estate prices begin to dip and sales start to taper off in the market. It happens to every market and you know what? It always comes back around again.  That is why it is referred to as a cycle.… Continue reading

19 Steps To Grow A Profitable Real Estate Investment Portfolio

canadian real estate wealth magazineI’ve written many times about the high caliber of quality from the Canadian Real Estate Wealth Magazine, which is truly an essential resource for real estate investors in the country. Up until recently, I had no bias saying that but I am very proud to announce my second contribution to the magazine entitled, 19 Steps To Grow A Profitable Real Estate Investment Portfolio.

It’s important that I mention there are no two identical paths to success in the world of real estate investing but, like anything else, there are definitely certain principles that exist to best set you up… Continue reading

How To Rob Your Bank: 3 Perfectly Legal Canadian Mortgage Tips

canadian mortgage tips

Click to download this book free

I recently had Scott Peckford, a mortgage broker in Kelowna, come into our office to do a presentation on his unique Canadian mortgage tips. Scott is the author of a book entitled How To Rob Your Bank: Perfectly Legal Tips To Save Money on Your Mortgage. It’s a really easy read and Scott has done an excellent job laying out the basics that everyone should know about a mortgage and about how the bank determines interest rates.

I’ve been teaching people how to pay off their mortgage faster for years but one thing… Continue reading

Creating The Proper Structure For Your Real Estate Portfolio

photo 2This month’s issue of the Canadian Real Estate Wealth Magazine (August 2013) has a special feature on structuring your real estate portfolio that could save you thousands of dollars. This is a topic that I’ve personally covered on my blog but this article goes into a bit more depth to help you understand how your investment structure affects your cash flow and taxation amounts.

A few topics discussed in this article include:

  • Creating a structure that holds your properties in a way that creates the least amount of taxation possible
  • Considerations with joint venture partners
  • Eliminate or reduce unnecessary risk… Continue reading

Selling Your Home – For Sale By Owner? Think Again.

for sale by ownerI personally believe that there are professionals out there to do most jobs. I think that if you really want to become a professional real estate agent, then considering selling your home For Sale By Owner is a good idea. If you are just dabbling and considering doing a For Sale By Owner situation, then you’re forgetting who you are in your profession.

You’ve got to understand why you’re doing it.

The reason I hear of people wanting to do For Sale By Owner is because it’s “cheaper”. Doing your own tax returns is cheaper too but I don’t recommend… Continue reading

Buying Properties With Different Joint Venture Partners

joint venturesThroughout the history of this website I have discussed various aspects of real estate investing and the involvement of joint venture partners but what happens when you’re buying properties with different joint venture partners?

Real Estate Investing With Multiple Partners

Anytime you bring in a partner, whether it’s a joint venture, a partnership or a corporate structure, as long as the investments are significant, there should be separate corporations for each of those partners. Now this greatly depends on your definition of significant because mine might be different than yours.

You have to make sure that the costs associated with… Continue reading

3 Creative Canadian Mortgage Tips

The key when attempting to get a new mortgage or financing for anything is echoed by the famous motto and mantra of the Boy Scouts: Be prepared! It’s true out in the wilderness and it’s equally true in the world of financing. If you are about to make one of the biggest commitments in your life, make sure you know these 3 Canadian mortgage tips first.

1. Create a Packagecanadian mortgage tips

If you walk into a bank, financing company or mortgage broker with some sort of package organized with all the important and relevant information, you are going to be much… Continue reading

Is Canada’s Real Estate Market In Trouble?

real estate investingCanada is a big country. One of the things I have always said when looking at purchasing real estate is to pick your area and pick it for the right reasons. Do I believe there are areas in Canada that are prone to issues or that I might personally have issues with? Absolutely.

Not everywhere in the country is going to offer lukewarm investment opportunities, even during a recession – you just have to dig a little deeper to find them.

There are certainly areas of concern for real estate investing within Canada but everyone has their own reasons for… Continue reading

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