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RS (anonymous)

Hi Mr. Madan

Absolute great advice in the current Q forum.

My Q pertains to real estate transactions. I have a house which is under my name. The neighboring property is owned by the city. I have asked them that I want to combine and subdivide it to create 2 new lots so, in turn, 3 lots in total, and they have ok’d this and have been rezoned and subdivided after I pay for the additional lot from them at an appraised price.

My Q is should I set up a company to purchase the lot from the city, and then I will most likely continue the process of subdividing, paying for services, paying for all the professional fees (I have already paid 25k to start the process), and surveyors, etc, and then service the property and then either sell the lots, or build on them.

Or should I get a loan from my dad, who has a CCPC already which loans out money as private mortgages already – either borrow a loan for up to 1 year so I can pay him back plus interest, or should we do a joint venture, whereas, he provides the money (or his company) provides the money to purchase the lot, then I bring my current lot/house, and we combine and , and then in turn, we develop the property, and sell the 3 lots?

or should we just do it under our personal T1?

thanks ahead of time.

Raj