All Forum Posts by: Jesse Shields

Thanks Cal, I'll give him a shout!

Hey All,

I've perused through the Canadian section and there doesn't seem to be a great deal of info on this topic. I'm looking for some information on how one can go about purchasing a rental home in Canada under a corporation (for liability purposes) while obtaining a conventional mortgage.

I guess we should go back to the basics: 

• Does it make sense to incorporate in Canada for holding rentals? My gut says yes, for liability issues etc.
• Is a corporation the type of company that makes the most sense? From my research, again yes, corporations have similar characteristics to the LLC in the states in terms of limited liability. There are also tax implications some of which are beneficial.
• Can you obtain a conventional mortgage through the company as I am sure they would want the personal guarantee of the person purchasing the home vs a shell corporation?
• If no, are there other ways around this? (purchase the home and then lease it to the corporation to rent out, or something like that?)

Hopefully I am asking the right questions, but I am looking for a bit of insight from those familiar with the Canadian mortgage and corporation laws. 

Thanks!

Jesse

Hey Robin,

Welcome to BP! I'm also relatively new to the site so thought I would share a few quick tips. I've found there are some great threads on the forum and you can do a quick search to find them (canadians financing in the USA, canadian properties etc).

I think many of your questions depend on some more specifics like price ranges, access to financing, if you are looking to flipping in Canada or USA, if you have a team setup or are looking to set one up. 

Jesse

@Raymond B. 

 thanks! I thought I was doing that but I see now that it didn't seem to link. Thats good to know!

Thanks for the insights @Jean Norton and @Lumi Ispas! This is great information and insight. It seemed to me like no one talks near as much about the flipping of condos as SFHs or entire Multi Fam buildings. 

@Alexander Lafreniere I agree with your overview though I would wonder how much more job availability there is in the mining and Ag sectors in Sask. I know in the past couple years housing prices have rocketed up in Saskatoon due to mine expansions etc, but they seem to have tailed off and both Uranium and Potash seem to have slowed their growth a bit and the oil price drop has effected some of their central and southern jobs as well (Estevan and Kindersley areas).

It certainly seems as though the Calgary market is flooded with sales and few purchases since January, but my thought there was there could be potential for finding a better deal if properties are not moving. I know several developers have delayed/cancelled some of their $1MM infills, but am not sure how this could affect some of the more affordable (is that even a thing in Calgary?) units.  

Hey All,

It's been pretty quiet up here in the Canadian section so figured I would quit lurking and ask some questions and hopefully start some discussion. 

I've been cruising trying to absorb as much information and set up as many systems as I can ahead of time for estimating costs etc, but my question now is: I am in the Calgary market which is fairly highly priced. It seems like there would be many opportunities to take some of the older condos/awkward layouts and have a fair amount of potential for flip profit but it seems that this is a far less popular choice.

When you compare equivalent (size and relative location) condos from older buildings to new builds there is a MASSIVE price discrepency: many new builds starting at 300k in the core with older similar sized and neighborhood properties going for less than 200k (but very dated). My question is, is it fair to base the comps on the new builds that are going up, or is the building itself a huge portion of the sale price when going to flip (if you had equivalent interior of an older building to a new building should the prices be comparable or will they always be far different because of the building itself).

Or if I am asking the right questions, please let me know and I can start looking into asking the right ones.

Thanks, 

Jesse