Comments on: Millionaire’s Corner: Real Estate – My first foray into investing http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm Building Wealth through Saving and Investing Fri, 19 Mar 2010 03:14:59 -0400 http://wordpress.org/?v=abc hourly 1 By: Scott http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-62567 Scott Mon, 01 Dec 2008 14:52:03 +0000 http://www.milliondollarjourney.com/?p=646#comment-62567 You are looking at it -- the INTERNET! Get ready to research! You are looking at it — the INTERNET!

Get ready to research!

]]> By: Olgs http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-62535 Olgs Mon, 01 Dec 2008 04:22:02 +0000 http://www.milliondollarjourney.com/?p=646#comment-62535 Anyone know where to find investing information, any sort of research, facts, trends, etc. I've been contemplating venturing into direct investing but not sure how good of an idea this is, anyone already do any of their own? Anyone know where to find investing information, any sort of research, facts, trends, etc. I’ve been contemplating venturing into direct investing but not sure how good of an idea this is, anyone already do any of their own?

]]> By: Kanggadin http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-54532 Kanggadin Tue, 30 Sep 2008 18:11:17 +0000 http://www.milliondollarjourney.com/?p=646#comment-54532 Awesome Q cash. Great job. I have a quick question. Based on your experience both as a landlord and as a REIT investor, 1. Which way do you recommend? I can certainly take the second job, landlord, if it is necessary but I am looking for passive income. In this case, REIT looks more attractive...But I do not want to sit and just pray for better management. What do you think? 2. I think I can pay off my mortgage in 5 years if I can maintain my current speed. As a HELOC investor, do you recommend it to me to get more speed to pay off mortgage (like in 4 years or something)? Thanks for your advice in advance. Good luck with your life journey. Awesome Q cash.

Great job. I have a quick question. Based on your experience both as a landlord and as a REIT investor,

1. Which way do you recommend? I can certainly take the second job, landlord, if it is necessary but I am looking for passive income. In this case, REIT looks more attractive…But I do not want to sit and just pray for better management. What do you think?

2. I think I can pay off my mortgage in 5 years if I can maintain my current speed. As a HELOC investor, do you recommend it to me to get more speed to pay off mortgage (like in 4 years or something)?

Thanks for your advice in advance.

Good luck with your life journey.

]]> By: Chuck http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-53051 Chuck Sun, 21 Sep 2008 10:52:37 +0000 http://www.milliondollarjourney.com/?p=646#comment-53051 @chuck (not the same chuck as me) Real estate can deflate. In the early 90s the real estate bubble burst. We're starting to see a lot of stagnation in the GTA market now. In our neighbourhood houses that would have sold in a week last year are taking 2-3 months to sell. @chuck (not the same chuck as me)
Real estate can deflate. In the early 90s the real estate bubble burst. We’re starting to see a lot of stagnation in the GTA market now. In our neighbourhood houses that would have sold in a week last year are taking 2-3 months to sell.

]]> By: Chuck http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-52974 Chuck Sun, 21 Sep 2008 02:33:03 +0000 http://www.milliondollarjourney.com/?p=646#comment-52974 You don't lose on real estate business because it never depreciate the only downside is that your money is frozen. You don’t lose on real estate business because it never depreciate the only downside is that your money is frozen.

]]> By: MultifolDream$ http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-52855 MultifolDream$ Sat, 20 Sep 2008 12:39:46 +0000 http://www.milliondollarjourney.com/?p=646#comment-52855 Your first property has been a good learning experience. What I see here in Quebec is a very challenging environment for the rental property investment as the strict regulations on the rent increases and the current high prices won't let you have a positive cash flow if you carry a significant mortgage. Your first property has been a good learning experience.
What I see here in Quebec is a very challenging environment for the rental property investment as the strict regulations on the rent increases and the current high prices won’t let you have a positive cash flow if you carry a significant mortgage.

]]> By: QCash http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-52604 QCash Thu, 18 Sep 2008 18:54:48 +0000 http://www.milliondollarjourney.com/?p=646#comment-52604 DGI It is not overly "gaming" the system. We had to set up the paperflow so it was clear that the money was coming from my wife so as to avoid any concerns about attribution (my lawyer set this all up when we set up the corporation and purchased the building). The reality is that my wife is "risk adverse" and this becomes her equivalent of a GIC which is what she would normally invest in (ironic given her past involvement with the mutual fund industry). The loan for the bank is actually what I refer to as C3. It is a HELOC that I set up to purchase my income stocks (I2) and will be paid off as I reduce my growth stocks (I1). Hope that clarifies. Q DGI

It is not overly “gaming” the system. We had to set up the paperflow so it was clear that the money was coming from my wife so as to avoid any concerns about attribution (my lawyer set this all up when we set up the corporation and purchased the building).

The reality is that my wife is “risk adverse” and this becomes her equivalent of a GIC which is what she would normally invest in (ironic given her past involvement with the mutual fund industry).

The loan for the bank is actually what I refer to as C3. It is a HELOC that I set up to purchase my income stocks (I2) and will be paid off as I reduce my growth stocks (I1).

Hope that clarifies.

Q

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-52598 Dividend Growth Investor Thu, 18 Sep 2008 17:33:02 +0000 http://www.milliondollarjourney.com/?p=646#comment-52598 For a second I thought that Q1 was a loan from a bank with your properties as collateral that you have used to buy stocks :-) So basically your corporation deducts the interest expense and your wife declares interest income. Interesting way to game the system. For a second I thought that Q1 was a loan from a bank with your properties as collateral that you have used to buy stocks :-)
So basically your corporation deducts the interest expense and your wife declares interest income. Interesting way to game the system.

]]> By: Qcash http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-52588 Qcash Thu, 18 Sep 2008 16:22:12 +0000 http://www.milliondollarjourney.com/?p=646#comment-52588 Hi Marcie In our situation, both my wife and my partner's wife lent money to the corporation for the express purpose of purchasing an investment property. The corporation pays each of them monthly the interest on the loans and they are issued T5s and report it on their income. Our corporation gets to decuct the interest from our income. I am not an accountant and cannot specifically advise you on your situation, but essentially when you provide start up capital to a corporation, it can either be as share capital or a shareholder loan. Most banks like to see some shareholder capital on the balance sheet, but if you don't need bank financing, a loan may be the way to go. It depends on your specific tax situation and requires a little advice. Q Hi Marcie

In our situation, both my wife and my partner’s wife lent money to the corporation for the express purpose of purchasing an investment property.

The corporation pays each of them monthly the interest on the loans and they are issued T5s and report it on their income.

Our corporation gets to decuct the interest from our income.

I am not an accountant and cannot specifically advise you on your situation, but essentially when you provide start up capital to a corporation, it can either be as share capital or a shareholder loan.

Most banks like to see some shareholder capital on the balance sheet, but if you don’t need bank financing, a loan may be the way to go. It depends on your specific tax situation and requires a little advice.

Q

]]> By: Marcie Leier http://www.milliondollarjourney.com/millionaires-corner-real-estate-my-first-foray-into-investing.htm/comment-page-1#comment-52580 Marcie Leier Thu, 18 Sep 2008 15:36:14 +0000 http://www.milliondollarjourney.com/?p=646#comment-52580 "The structure of that corporation involves us both loaning money to the corporation (Q1)." Can you please explain more about how that works? I have just incorporated a business and of course have had to use my own cash for start-up costs. I'm wondering how that might apply to me and what it could mean come tax time for me or my business. Thanks! Marcie “The structure of that corporation involves us both loaning money to the corporation (Q1).”

Can you please explain more about how that works? I have just incorporated a business and of course have had to use my own cash for start-up costs. I’m wondering how that might apply to me and what it could mean come tax time for me or my business.

Thanks!
Marcie

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