- Joined
- Dec 5, 2007
- Messages
- 2,880
Hi,
Assuming you already have a registered corporation holding properties of which you have 100% of the shares, how would you purchase an apartment building (say 10-plex) as part of a new, first JV deal:
- Register new Corp. for the JV partners, for each JV, and purchase under this new corp. OR
- Use your existing Corp. and just add 50% of JV property to it every time you purchase as part of a JV
(and the other investor can do the same – register a corp. and put 50% of the property there OR
- Put the property in a registered Trust if only one of the partners is on title (the trustee), for example
(not sure about this option how it works)
I heard about a rule of thumb saying you should register a new Corp every 5 properties. In other words not to purchase more than 5 properties under the same corporation. not sure about JV rule/recommendation with regards to registering a new corp.(?) Also, not sure if it is really supposed to protect you much more
not putting everything in one corp. I`ll have to discuss this with my lawyer too, however it is always great to hear other investors` point of view first.
Thanks,
Neil
Assuming you already have a registered corporation holding properties of which you have 100% of the shares, how would you purchase an apartment building (say 10-plex) as part of a new, first JV deal:
- Register new Corp. for the JV partners, for each JV, and purchase under this new corp. OR
- Use your existing Corp. and just add 50% of JV property to it every time you purchase as part of a JV
(and the other investor can do the same – register a corp. and put 50% of the property there OR
- Put the property in a registered Trust if only one of the partners is on title (the trustee), for example
(not sure about this option how it works)
I heard about a rule of thumb saying you should register a new Corp every 5 properties. In other words not to purchase more than 5 properties under the same corporation. not sure about JV rule/recommendation with regards to registering a new corp.(?) Also, not sure if it is really supposed to protect you much more
not putting everything in one corp. I`ll have to discuss this with my lawyer too, however it is always great to hear other investors` point of view first.
Thanks,
Neil