Using a Corporation to Buy Homes

[asifghayoor]

I am making my first purchase on a triplex in hamilton and wondering if it makes sense to buy it under a a corporation with me as a garantor. I seem to be running into problems with insurance companies. Everthing seems more difficult once I mention its under a corporate name. Any advice would be greatly appriciated.

Asif Ghayoor

 

[invst4profit]

Your taxes will be higher under a corporation as well as the accountant costs associated with taxes.
As long as you stay small a corp is not necessary. Liability seemed to be the concern for most people but assuming you have adaquite insurance and a high mortgage you should have no above average concerns in my opinion. Keep it simple.

 

[DonCampbell]

Hi Asif,

Sadly the answer to this question is "It Depends." It depends on your intention for the property, your ability to get financing (either way you will personally guarantee the mortgage), the other businesses in your life, your family size etc etc.

It is critical that you speak to a REIN accountant who has experience in rental real estate and who understands that there is no black and white answer to this question.

You can find a number of them either at the REIN Workshop (one spoke at the September REIN Workshop) or on this site`s Members`s Resource Directory.