Module Three: Financing and Taxation

Financing

• principles of leveraging and examples
• steps in calculating loan repayment
• lender-based pro forma and their component parts
• lender documentation
• lender rations and “Rules of Thumb” which affect the financing of income producing properties
• locate sources of financing
• checklist to obtain a loan for a real estate investment property
• areas of consideration for an investor to examine while negotiating a loan

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• income tax considerations in real estate investment opportunities
• nature of a tax deferment in income
• taxable income from operations
• difference between taxable income and cash flow
• factor depreciation into real estate investment
• calculate capital cost allowance and identify the various classes of CCA
• principle of undepreciated capital cost
• principle of capital gains and inherent tax consequences
• provisions or tax deferrals allowed for by reserve sales
• implications of terminal losses
• roll over provisions in the disposition and subsequent reinvestment in like properties
• adjusted cost base
• rules for personal residences
• calculations to determine after tax cash flows during the holding period of a revenue property
• after tax position of an investor following sale of a revenue property