Real Estate Investing

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
----- Original Message ----- 
From: 
To: David Ingram at home - bus at [email protected] 
Sent: Sunday, January 04, 2004 4:23 PM
Subject: Re: Real Estate Investing
Dear Mr Ingram:
Thank you for your reply.  It has come to my notice that in one of your earlier reply to another enquirer, it appears to me that there is a law or a banking practice that the minimum down payment for a rental property located in BC is 25%.  I want to confirm my understanding, and whether there is any exceptions to this rule.  Thanks.
Hxxxxxxxxx
===============================================
DAVID INGRAM REPLIES:
There is no law in BC that requires 25% down on a rental property.  An individual lender may not give you a mortgage without 25 or 30 or even 40%, particularly in a highly inflated market where they are worried that the proces are about to fall.  
Most lenders will not give you a first mortgage without 25% down to the first but there are other second and even third mortgages available which can result in zero or little down payment although hellish high interest rates.
Sometimes, it depends upon whether the vendor will carry some of the paper.
Your own credit history will also affect your mortgage ratio ability with private investors.  A private investor may be far happier to carry an 85% ratio mortgage with a strong history and a ig portfolio because it is easier and less expensive to foreclose on a first  at 85% than it is to foreclose when you are the 10% mortgage holder and the property has dropped 10% leaving no money for legal and real estate sales commission.
 david ingram
  To: [email protected] 
  Sent: Tuesday, December 30, 2003 9:02 AM
  Subject: Real Estate Investing
  Dear Mr Ingram:
  I have applied for a position in your previous office sometime ago, but somehow, instead of having a job, I have become a subsciber to your questions/amswers of US/Canadian tax matters.   You are very knowledgeable.  I am now considering a real estate investment together with my friend.  We have yet to decide on the proportion of contribution.  My question is whether it is better for us to form a limited company intead of just registering both of our names to a rental property.  I am thinking of in case the property is not held by a company, it can become a joint tenancy, and complication may arise if one of us passes away.  Please advise.   Also I learn that you had mentioned in one of your earlier letters that there is a website on real estate investing in Canada www.jurock.com.  Do I have to subscribe to this newsletter first?   
  Thanks for your response, and happy new year.
  Hxxxxxxxxx
  =======================================================
  david ingram replies:
  I am sending a copy of this to Ozzie along with a request that he send you a free month or two of the Facts by Fax.   You can decide if it is worth it to you but I can tell you that if you want to invest in real estate, it is a must purchase.
  Most of the time I suggest that the building is better held in a proprietorship or a partnership name.  A corporation is cumbersoms, adds a $1,000 a year to expenses and for all intents and purposes does not give you any public liability protection because everyone will wantr personal guarantees.  also, if you have to feed it operating money, you do NOT get to deduct it against your personal income.
  You and your partner should make an appointment (sometimes i go a week without making a suggestion for a consultation and you are the third today) and come and see me before you decide how to register the property.
  You can also get hold of Ozzie's book "Forget About Location, Location, Location" at his website, www.jurock.com
  Get hold of  "Forget About Location, Location, Location" as well if you are going to be a real estate investor.  
   David Ingram's US/Canada Services
  US / Canada / Mexico tax and working Visa Specialists
  US / Canada Real Estate Specialists
  108-100 Park Royal South
  West Vancouver,  BC, CANADA, V7T 1A2
  Calls accepted from 10 AM to 10 PM 7 days a week
  Res (604) 980-3578 Cell (604) 657-8451
  Bus (604) 980-0321 
  [email protected]
  www.centa.com www.david-ingram.com
  Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
  This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
  multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, Antarctica,  Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
  income tax wizard wizzard guru advisor specialist consultant taxman  Alaska,  Alabama,  Arkansas,  Arizona,  California,  Colorado, Connecticut,  Delaware, District of Columbia,  Florida,  Georgia,  Hawaii,  Idaho,  Illinois,  Indiana,  Iowa,  Kansas,  Kentucky,  Louisiana,  Maine,  Maryland,  Massachusetts, Michigan, Minnesota,  Mississippi,  Missouri,  Montana,  Nebraska,  Nevada, New Hampshire,  New Jersey, New Mexico,New York, North Carolina,  North Dakota,  Ohio,  Oklahoma,  Oregon. Pennsylvania,  Rhode Island,  South Carolina,  South Dakota, Tennessee,  Texas,  Utah, Vermont,  Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories,  Mount Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas  Taxman and Tax Guru  and wizzard wizard
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/a2992409/attachment.htm
---------------------- multipart/alternative attachment--