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Old 01-31-2012, 07:27 PM   #19
4444
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Quote:
Originally Posted by Hehe View Post
Great post!
I currently some commercial properties (on NNN-base) in the US. Any1 with questions in this area, I'd do my best to answer them as well.

But I am also interested in residential area given the potential of returns. (Commercial properties stay relatively flat as it's rent dependent)

Can you explain a bit on the tax structure? If I were to purchase RE with the idea of selling them later on, what would be the best way? (consider renting out during the period prior of selling)
As I say above, I can't give out tax advice as I'd end up liable - but know this, there are right ways of investing, and wrong ways. there are ways US people will tell you (LLC) which just don't work for Canadians (LLC is very tax inefficient for Canadians, I can explain why, but would have to be in person), equally your structure is important too for liability protection if you are going to rent out - so there is a fine line between 1) liability protection 2) tax efficiency and 3) complexity/tax filing complexity - the structure I use (which, i don't want to say is proprietory, but generally I don't go around giving to people as only people with experience in these types of transactions would know about), I feel, has the best combination of all of these three.

Just know, using corporations is bad for tax, using partnerships is bad for liability protection, holding individually is bad for liability protection but best for tax efficiency...

if you are serious about this, PM me - I certainly want to educate people of the opportunity, but just know there are a LOT of risks associated with investing in the US which are easily mitigated if you work with the right people...
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