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- What cap rates are you seeing (in particular I was looking at Las Vegas area)?
I wouldn't touch Vegas with a 10 foot pole - I find much better (yield & safety) deals elsewhere. I am seeing 8-11% cap rates
- What is your target cap rate when you purchase an investment property?
8-12%
- Is your main goal to realize gains on capital appreciation or earn rental income? Or a combination of both?
Rental cash flow now, huge capital appreciation over the next 5-10 years. I'll PM you my website which discusses/supports my reasons for this
- How does it affect individual's tax liability in Canada (if not going through a corp/LP/etc. structure but owning individually)?
This is where you have to pay big bucks!!! cross border tax is a HUGE headache and I couldn't even begin to try to explain all the things that you would have to consider. Just know 'individually' is the most efficient, through an LLC is the worst for Canadians
- With the "top secret" structure you recommend for your clients, assuming high income investor (highest tax bracket individually), what is the effective tax rate to such investor on income earned through partnering with you? Based on your projections or historical data.
Not top secret, I don't want you thinking this is some kind of 'i've got a secret, come work with me' kind of pitch - cross border tax and structuring is an EXTREMELY complex area, so most people could throw out a dozen structures, they all have their merits and downfalls. What I use is, by far, the best for me and my clients for many reasons, that's all. But i'm not going to tell people what it is as without a fundamental knowledge of US and Cdn tax law and legal liability knowledge, it would be dangerous.
To answer your question re: tax, well of course, you'd pay your marginal tax rate in Canada on your net taxable income from property investment - nothing more (just realize though that you can whittle down your actual cash income to very small amounts of taxable income). Many structures create tax inefficiencies due to cross border issues. You CANNOT pay less than your marginal tax rate unless you do something wrong/immoral/illegal
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