All Forum Posts by: Matt Andrews

Hi BP community! 

I'm looking for professional advice from an accountant or tax specialist on how to minimize capital gains tax on a somewhat complicated triplex deal that I purchased 2 years ago in Windsor, Ontario. 

Here are the approximate numbers:

Purchase Price: $170,000

Downpayment: $43,000 (borrowed by refinancing a principle residence)

Mortgage: $127,000 (held in a self-directed RRSP with TD Bank) 

Capital Improvements: $70,000

Annual Rental Income: $39,600 + utilities

Target Sale Price (after realtor fees and legal cost): $330,000 

I am looking at reinvesting the entire $203,000 into a mid-sized apartment building. My question is how do I minimize the tax paid on this $90,000 gain? Is there a program that is similar to the 1021 exchange in the United States for Ontario? I've also got 3 other partners on this particular deal that are not on title (it's in my personal name), and we are splitting the profits. Can I write that off as an expense so that I only pay tax on my portion of the $90,000 gain ($22,500)? 

Any advice in this area for this particular deal and on tax-savings strategies in Ontario would be much appreciated, thanks!

I believe Detroit has huge potential. I invest right across the border in Windsor, Ontario, which has tons of opportunity as well (plus the dollar goes further). I've seen Detroit, become nicer and nicer over the past 10 years, and personally know an investor that lives here in Windsor that buys these Michigan properties in decent areas, flips them, and sells to investors for $35-40k, fully turnkey, bringing in $8k/yr or more in income. He has done OVER 500 of these deals in the last 8 years, and has a full construction team, and property management. If anyone is interested in some Turnkey Detroit properties, I can connect you with him and he can give you an expert opinion on investing in Detroit. 

Come network with other Real Estate Investors in Windsor Ontario, whether you are a seasoned investor or just starting to learn!
We meet monthly to make new connections, learn from each other's experiences, and have some fun.
We play Robert Kiyosaki's Cash Flow game, and talk about the latest news and trends in the market.

You can also find the event on meetup.com.

Way to go Keenan! I'm also an investor here in Windsor, and have a few mutli-family properties in Walkerville. If you ever want to meet up and talk some strategy, I'm more than happy to!

P.S. I've bought a few properties with @Cassidy Logsdon and I would highly recommend her. Cheers!

Hi Brent,

@Cassidy Logsdon would definitely be my recommendation as well. We just viewed a 4plex together earlier this week, some decent deals down here for sure! 

Cheers,

Matt

Hi Fellow Investors!

I've been investing in Windsor Ontario for the last few years and have a really great feel for the market and have a solid network of people on- and off-market providing great opportunities. Also through years of running a construction business and real estate investing success, I have the nice problem of too many investors wanting to invest with me. In order to best serve my investing partners by minimizing risk and increasing the capacity for deals, I am now strongly considering pooling resources and opening up a Private Equity Fund.

This is new territory for me and I am wondering if anyone has any experience starting or being involved with a Private Equity Fund? Any advice is appreciated!

Thanks :)

Hi Fellow Investors!

I've been investing in Windsor Ontario for the last few years and have a really great feel for the market and have a solid network of people on- and off-market providing great opportunities. Also through years of running a construction business and real estate investing success, I have the nice problem of too many investors wanting to invest with me. In order to best serve my investing partners by minimizing risk and increasing the capacity for deals, I am now strongly considering pooling resources and opening up a Private Equity Fund.

This is new territory for me and I am wondering if anyone has any experience starting or being involved with a Private Equity Fund? Any advice is appreciated!

Thanks :)

Hi Fellow Investors! 

I've been investing in Windsor Ontario for the last few years and have a really great feel for the market and have a solid network of people on- and off-market providing great opportunities. Also through years of running a construction business and real estate investing success, I have the nice problem of too many investors wanting to invest with me. In order to best serve my investing partners by minimizing risk and increasing the capacity for deals, I am now strongly considering pooling resources and opening up a Private Equity Fund.

This is new territory for me and I am wondering if anyone has any experience starting or being involved with a Private Equity Fund? Any advice is appreciated!

Thanks  :)

Your very welcome @Aditya Soma, it was a great time and we are very glad to have connected with such like-minded people like yourself. Looking forward to growing together and building up the real estate investment scene here in Windsor! 

@Nick Ovington I wouldn't consider the $350k property with those rents, unless they are significantly under market rents and tenants pay utilities, even then it could be pretty tough to have positive cash flow. The one other way this could be a profitable investment is if similar properties in the neighbourhood are selling for quite a bit higher. 

Otherwise, really try for the 1% rule as much as possible. They're out there - it just takes looking at a lot of properties to find ones worth pursuing further.