There’s many factors for an Investor to consider when purchasing real estate in the Barrie market – Barrie Investing has been involved in all three options below & can help guide you in the right direction based on your comfort level & Investing expectations.
Sole Proprietorship
A Sole Proprietorship consists of one person controlling the investment purchase, making all decisions & receiving 100% of the profit. Of course this sounds great, but coming up with the full down payment of at least 20% is not easy (required by the lender for rental purchases)…Either way, this is a good option for Investors that don’t want a partner.
Multiple Partners
A Joint Venture consists of 2 or more people that pool their money together to purchase the real estate investment. For example: Two partners share 50% each, Three partners share 33.3% each, Four partners share 25% each. This is an attractive option as it’s much more affordable since the down payment is split. BarrieInvesting.com recommends a co-ownership agreement in this situation, which is signed with the lawyer on closing.
Silent Partner
A Joint Venture with a silent partner consists of two people: The Money Partner (Silent Investor) & The Active Partner. The Money Partner is responsible for the down payment & the Active Partner runs the day to day dealings of tenants, issues, rent, maintenance/repair, etc. This is a great option for a Silent Partner that wants to diversify their portfolio with Real Estate holdings, but doesn’t want to be a Landlord – Just sit back & do nothing!
Matthew Johnston, Broker
Domenic Gagliardi, Sales Respresentative
Royal LePage First Contact Realty
299 Lakeshore Drive East
Barrie, ON L4N 7Y9