Taking over existing portfolio

[Alvaro Sanchez]

I am looking to create a proposal to an existing landlord who is looking into retirement after 30 years in the business. He has several properties where some have mortgages and some none. He is open to explore some options to direct finance them and how best to minimize or defer some of the taxes (capital gains, transfers, etc.). I want to structure a win-win for both of us and perhaps start with 1-2 properties to see how well we can work together. Most of them are condos in Ontario.





Are there any specific strategies that one should use for things like this? VTB, ASF, Management agreements, etc. Any comments or suggestions are appreciated.

 

[Thomas Beyer]

Four options should be explored: AfS, VTB, share sale and lease.

 

[ChrisDavies]

There's a couple good commercial Realtors out there (ourselves and one or two other guys in Edmonton) who will help you do this for a reasonable fee. There's lots of ways to skin a cat and someone who has done a bunch of it can help you both win. I'd be happy to refer you to someone.

 

[Alvaro Sanchez]

Thank you both Chris & Thomas... I am in Ottawa and most of the properties are in Ontario. I appreciate any referrals that you might have (for colleagues or lawyers open to AFS/VTB, etc).

 

[Alvaro Sanchez]

Have any of you done a property management agreement where you also included an option to buy the property?



Case:

I have a owner who is selling 3 properties; In principal, I will be buying one and option the remaining two and actively manage them until closing in 1 year. My soft cost (time) of property management fees will be deferred and added as part of the down payment. Yet, any hard-cost such evictions, repairs, marketing, etc. the owner still be responsible.



Any ideas?