Choosing An Investment: Ownership & Participation

In Investment Properties, Selection by admin0 Comments

There’s may ways to build investment property portfolios whether you’re on title or not.

The first way is an outright purchase where you are the owner.  You incur all liabilities and burdens with respects to managing the property and complying with municipal, regional, state and federal laws and by-laws.

You can own a “piece” of a property by  participating as a shareholder in a syndicate corporation or limited liability partnerships (LLP). Corporations are treated as unique legal entities that often shield shareholders from “owner” liabilities including the tax burden associated with rental income but don’t allow you to “share” in the costs. LLPs, on the other hand give you greater benefits in terms of shared expenses and revenues but also the liability equal to your stake in the business.

You can buy into real estate trusts much like a mutual fund where you have no greater liability or tax burden then capital gains/losses on your share.

If you would like to discuss ways to acquire property then please call us.

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