Buying with Investors - Multiple Accounting and Legal Fees?

[Nir]

Hi,

I have a few serious investors interested in purchasing properties with me.

Should I really open a new company for each investor/purchase and pay multiple legal fees and multiple accounting fees every year going forward for each of the companies?

If it was multiplexes perhaps we would not have an issue but I`m talking about a Duplex here, a 4-Plex there.

Any other less expensive way around it?

Thank you all for the support, regards,
Neil

 

[MonteDobson]

You won`t need a new corporation for each investor, as it is an unnecessary expense and structure for smaller transactions. Only incorporate if you have a reason to!!

Just open a separate bank account with each investor jointly, or yourself depending on who is going to be on mortgage / title etc. Keep your accounting separate (by property/by investor) with Quickbooks or simply an Excel spreadsheet.

Above all, keep it simple in order to minimize expenses and maximize returns for you and your investors.

 

[Nir]

Thank you Monte for the feedback.

I already have a company and prefer purchasing the new property under the same company.

Are you suggesting/saying I can open a new bank account (perhaps not with the same bank but under the same company name) just for the purpose of having the new property managed under a separate bank account for reporting purposed for the other investor?

I actually like the idea(!) just wanted to confirm that is what you meant(?)

Regards,
Neil