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Joint-Ventures
We are not financial advisors. However, I am guessing that the value of your stock portfolio has decreased some 40% in the 2008 calendar year. Owning real estate, either on your own or with a small group in a joint venture offers an investment diversification outside of the stock market/mutual fund market. While you can invest in real estate via REITs (Real Estate Investment Trusts), these are traded on stock exchanges and are subject to some of the stock market fluctuations, whether rational or not. The advantage of REITs is that you can buy small "quantities" of real estate and "get out" when you wish. As well, someone else is looking after the property for you. In a Joint Venture, or singly, the investment is not quite so liquid. But owning a property or a piece of property that is not subject to the stock market has advantages. Among these are cash flow and tax relief (CCA deductions).

We can find a suitable property at most price ranges. We can do this for one person or a family or a small group of "partners" (joint ventures). You will have title of the property in your name and in the case of a joint venture, each will be registered separately on title, something that can be verified by you or your advisors. This property can be a small or large apartment building, a leased industrial building, a leased office building, a store, plaza or shopping center or a mixed use project.

HERE IS WHAT WE WILL DO AND OUR DISCLOSURES:
  • We will find and purchase the property. We do this through Right At Home Realty Inc., Brokerage, with whom Joel Snitman is associated as a registered Ontario salesperson. (See separate website: www.joelsnitman.com
  • Joel Snitman will receive a real estate commission from the seller of the property through Right At Home Realty Inc., Brokerage
  • Rockwood Management Inc. will manage the property as property managers. What that entails is outlined elsewhere on this website. The charge for this service is usually 4% and includes, in the event of a joint venture, administering the joint venture.
  • Legal fees involved in the purchase, setting up corporations, as themselves or as bare trustees, and independent legal advice is not included in our fee. The legal fees are not marked up.
  • Funds provided are put into an interest bearing lawyer's (attorney's) trust account until a property is found and required for closing. Interest accrued, if any, is to the provider of the funds.
  • In the event of a joint venture, an agreement among the joint ventures must be prepared.
  • In the event the property is to be sold, we will do so, again by Joel Snitman as a registered Ontario salesperson, on the Toronto Real Estate Board MLS? listing service who will charge you a commission for selling the property (currently usually 5%).
  • There are possible downsides. The real estate market can go down for period. The property can lose a tenant. Over time the building may require unforeseen repairs not covered by rent or by additional rent (TMI) that the tenant pays for.

However, for some years we have been managing properties for individuals and joint ventures. They are all better off financially for their positions in real estate. Joel Snitman started in the property management, real estate business area in the mid-1970's and is a member of CREA (Canadian Real Estate Association), OREA (Ontario Real Estate Association), TREB (Toronto Real Estate Board-Commercial Division), CCIM (Central Ontario Chapter), GTAA (Greater Toronto Apartment Association). Please contact us for examples and proforma projections of a real current scenario might look like.