SP real estate advice

[Cowboy905]

I'm posting on behalf of a friend of mine, who has worked as an SP and she was asking for advice on real estate matters. She does reads this board.

She pays her taxes, though on paper she is not an SP, but self employed as a "graphic designer"

She is wanting to make an investment in a multi-unit rental property. I told her she should incorporate, but I don't know how she she go about getting a mortgage. Advice from those in the know? I'd like to see her succeed as investing is the way to go, not just saving your money in a bank IMO.

 

[moresex4me]

She's got to show that there is more than enough income off the property to cover the mortgage, and she's going to need at least 25%, maybe up to 35% downpayment on the property. It gets harder to get the money if she does it through a corporation. The banks like to know who they can go after, and numbered companies or other corporations can disappear overnight.

 

[DATYdude]

Short answer since I'm typing on my phone...

There are two issues, the first is whether to incorporate, and this doesn't bear on whether a bank will approve a mortgage, since they will likely ask for personaly guarantees from the principals of the company. The issue of incorporating relates to whether. Capital gains and income taxes, and your friend's personal liability.

The issue of the mortgage approval hinges on your friend's credit history and declared income. She should meet with a mortgage broker and see what's available, if you need a recommendation, PM me.

 

[DATYdude]

Short answer since I'm typing on my phone...

There are two issues, the first is whether to incorporate, and this doesn't bear on whether a bank will approve a mortgage, since they will likely ask for personaly guarantees from the principals of the company. The issue of incorporating relates to whether. Capital gains and income taxes, and your friend's personal liability.

The issue of the mortgage approval hinges on your friend's credit history and declared income. She should meet with a mortgage broker and see what's available, if you need a recommendation, PM me.

 

[tantrictease]

Is what you share with a mortgage broker confidential? Would you suggest disclosing details of employment as an sp with a broker?

 

[tboy]

Is what you share with a mortgage broker confidential? Would you suggest disclosing details of employment as an sp with a broker?

Doesn't matter what you do to earn a living since being an sp isn't illegal.

The only thing that really matters to lenders is not what you do, it is what you can prove you earn.

When I filled out the paperwork for my recent mortgage re-finance it simply stated "self-employed" in the proper space.

 

[kumamake]

++++ a great credit report goes a long way.
a few years back my score a round 600 and could not get a $1000 overdraft, now my score is mid 700's got 50000 in line of credit within a day.

 

[Miss Maya Blue]

Doesn't matter what you do to earn a living since being an sp isn't illegal.

The only thing that really matters to lenders is not what you do, it is what you can prove you earn.

When I filled out the paperwork for my recent mortgage re-finance it simply stated "self-employed" in the proper space.

isn't living off the avails of prostitution illegal? does this not make making a living from escorting illegal essentially?

 

[Don]

isn't living off the avails of prostitution illegal? does this not make making a living from escorting illegal essentially?

Not if it's just the SP herself who is benefiting.

 

[mac]

isn't living off the avails of prostitution illegal? does this not make making a living from escorting illegal essentially?

Being an escort isn't illegal.....why go into the details.

 

[Miss Maya Blue]

Not if it's just the SP herself who is benefiting.

I've always thought otherwise. I've actually listened to talks on the subject and came away thinking it was illegal for even the woman making the money (not that that ever made sense, but laws dont always reflect common sense to me)

Not that I would think about telling the bank that escorting is my profession. That sort of thing I imagine would come back to haunt you in a big way. Any time you want to travel or cross a border, for instance. I've always stated my other employment avenues as what 'i do'

 

[fijiman]

My opinion is that this is the single worst time in history to be investing in Canadian residential real estate.

The only reason prices are holding at their present levels is due to a combination of the lowest rates in history and a relatively low level of inventory due to a large # of homeowners who either simply cannot afford to sell (and therefore pay off the bank), or who were fortunate enough to have a variable mortgage at "prime minus..." prior to last fall.

I think that everything which has happened to England, Ireland, the US, etc with RE prices will be happening here over the next several years.

my 2cents.

fj

 

[chrispalen]

Is what you share with a mortgage broker confidential? Would you suggest disclosing details of employment as an sp with a broker?

I would not recommend disclosing details of employment as an SP.
All she needs to show is 25% downpayment in the bank, reasonably good credit score/history, income from self-employment as graphic designer.

CP

 

[freakshow]

i will make this quick and painless

i dont care if your an sp or mp or whatever
i have done mortgages for dancers in the past

hope this helps

 

[Brill]

If your income tax shows a good total and you have the downpayment, nobody cares how you earn a living.
It's smart to report SP income because there are so many write-offs you can benefit from, plus it's the law.

 

[Don]

My opinion is that this is the single worst time in history to be investing in Canadian residential real estate.

The only reason prices are holding at their present levels is due to a combination of the lowest rates in history and a relatively low level of inventory due to a large # of homeowners who either simply cannot afford to sell (and therefore pay off the bank), or who were fortunate enough to have a variable mortgage at "prime minus..." prior to last fall.

I think that everything which has happened to England, Ireland, the US, etc with RE prices will be happening here over the next several years.

my 2cents.

fj

fiji - i agree that low interest rates are keeping the RE market afloat... but the question is how long will it remain low? Some people say that it will spike soon and others point to Japan of an example of low interest rates that lasted forever.

 

[Riley.Royal]

When you file your taxes they have different filed for what job you do, they even have one for adult entertainment and online gambling websites.

As long as you claim your income that your at least 30k per year and also have a good credit rating you can more then happily get your first or second home.

The bigger the down payment the better, the better relationship you have with your creditors and your financial institutions the better. The government is well aware of the adult industry making money they just want what taxes is owed to them.

 

[Rockslinger]

I've actually listened to talks on the subject and came away thinking it was illegal for even the woman making the money (not that that ever made sense, but laws dont always reflect common sense to me)

Speaking as a non-lawyer, I think it is illegal (silly as it might be) in 3 respects:

1) Soliciting for the purpose
2) Living off the avails
3) Maintaining a "bawy house"