Best Investment Vehicle

[Forlando]

Hi, Frank here - new to your forum/organization.

I will be raising about $1M from friends for a series of home flips in small town Ontario. Can anyone point me to the best and simplest investment vehicle to begin my research on? (ie. Corp, Limited partnership etc). I'll be paying the investors an annual flat interest rate and want to ensure their tax exposure is minimal coupled with some level of liquidity.

Also, can an investor use RRSP funds?

Has anyone heard of investor insurance for a situation as described above?

Any/all help appreciated!

cheers

Frank

 

[Thomas Beyer]

RRSPs vehicles have to one of:

• options, shares, trust units or bonds of a publicly traded company,
• shares approved by the RRSP trustee in a private corporation,
• mortgage,
  GICs,
  trust units in a trust approved by the RRSP trustee

LPs are not directly RRSP esligible, as LPs are a form of direct ownership, and real estate, too, is not directly allowed in an RRSP ! Related post on LPs here: http://myreinspace.com/rein_members_only/Legal/85-20200-Limited_Partnerships_in_Ontario.html



Be aware of the securities legislation, especially NI 45-106 and NI 31-103, as you will be selling securities and as such need to be aware of the proper exemptions.



Insurance for that does not exist. It is called "management experience".