- Who is Winchester Financial?
- Who can invest with Winchester?
- How is such a high R.O.I made possible?
- What do I own as a unit holder?
- Who manages the properties?
- How liquid is this investment?
- In times of financial crisis, what is my exit strategy?
- Do you ever demand cash-calls that require unit holders to invest more money?
- What happens to my income if the property burns down?
- What happens if Winchester ceases activity?
- How do I know my investment will be safe?
- Can my company invest in S.T.A.R.T.?
- What will my accountant need to do?
- Who can benefit the most from our program?
- This sounds to good to be true, what’s the downside?
- Why is it important to own real estate?
- What is a R.E.I.T.?
- What is a Tax-Assisted Real Estate Investment Offering?
- Why join a private R.E.I.T.?
- Who is an Accredited Investor?
Winchester Financial Group is an umbrella of affiliated private companies responsible for the purchase, re-development and syndication of income-producing properties in Canada.
Who can invest with Winchester?
Investments can only be made by Accredited Investors, existing investors,
friends, family, close business associates or investor with a minimum cash
investment of $150,000.
How is such a high R.O.I made possible?
Winchester Financial finds, acquires, improves, and manages the most profitable real estate properties and offers them to investors. We buy quality properties in poor hands and utilize unrealized potential. We then pass this value on to our investors.
What do I own as a unit holder?
As a unit holder, you own an undivided interest of a tangible brick and mortar asset, of any piece of quality real estate that is immune to market fluctuations and volatility, which you choose to invest in. The legal structure of S.T.A.R.T. protects all unit holders from liability.
Although most companies monitor their properties closely, it is common to outsource their property management for the day-to-day operations of the properties. Winchester Financial Group has an in-house property management team of professionals, operating as one of our umbrella companies. Winchester Real Estate Investment Trust Ltd. are professionals that have expertise in effective property management. They oversee all management, operation and up keeping of all our properties in every aspect including, but not limited to, tenant relations, preventative maintenance, leasing and marketing, co-ordination and supervision of repairs and improvements etc.
As professional property managers, their commitment is with our clients and therefore their success is your success. They are experienced and qualified to conduct all aspects of ensuring tenant satisfaction, client care and increasing the long-term value of our projects. This allows you the freedom to pursue your personal and business objectives as we create a hassle-free investment.
How liquid is this investment?
This is is a long term investment. S.T.A.R.T. is structured as a
retirement plan that can be subsidized by your tax savings, especially in
the first few years and in the later years by cash flow produced by the
property. Liquidity should not be an issue since most of your investment
may be borrowed.
In times of financial crisis, what is my exit strategy?
One of the wonderful things about life is that it is ever changing. Should
a change happen that puts an investor in a financial crisis, we are
willing to work with our investors to find a viable solution. We are here
to support you.
Do you ever demand cash-calls that require unit holders to invest more money?
No. In our entire history, Winchester has never demanded a cash-call to
any investors. We always maintain a sufficient cash reserve to provide
interest free cash flow loans to projects when required. Projects may
include lease hold improvements, tenant allowance etc.
What happens to my income if the property burns down?
All properties under management have insurance coverage. The insurance coverage includes both replacement of the building as well as replacement of the rental income.
What happens if Winchester ceases activity?
When you become and investor you own an undivided interest in the property by your ownership of Units. The Units are issued by a corporation which is formed as bear trustee. This corporation is deemed to be inactive for tax purposes as all income and expenses are attributed to the beneficial owners (the investors). For the reason that this corporation is inactive it cannot be held liable, hence the investors’ interest in the property is unaffected by Winchester Financial’s inactivity.
How do I know my investment will be safe?
With everything in life there is always some risk. At Winchester Financial Group, we have never asked our clients for a contribution in the case of cash requirements. We have never been denied income deductions by Canada Revenue Agency. Complete disclosure regarding the investment is provided in the Offering Memorandum Term Sheet. We offer rental revenue guarantees, cash flow guarantees and provide a mortgage covenant guarantee. Winchester also arranges equity lending for your investment. We have a vested interest in the success of the property and as an investor you get the benefit of long term real estate ownership.
Can my company invest in S.T.A.R.T.?
Yes. A corporation or partnership can get all the same tax savings that you as an individual do. A Winchester Financial Group representative can give you a better answer as to whether this investment would be the best course of action for your company.
What will my accountant need to do?
When it is time to do your taxes, Winchester Financial will provide all our individual investors all the tax documentation and instructions necessary. A T776 Form (Statement of Real Estate Rentals) is provided and should be included at Line 126 of your T1 General Income Tax return and a copy of Form T776 should be submitted with the return. Also, an Interest Expense letter is provided and should be included on Line 221 (Carrying Charges and Interest Expenses) of your T1 General Income Tax return and a copy should also be included in a Schedule 4 to be attached to your Income Tax return. You or your accountant can transfer the information to your T1 general in a seamless process.
Who can benefit the most from our program?
Anyone who is concerned about realizing a comfortable retirement can benefit from our program. Any person who is self-employed or has no company pension can benefit from our program. Individuals with no union pension can also benefit. Essentially, anyone who is seeking to meet their goal of being financially secure during their retirement can benefit from our program.
This sounds to good to be true, what’s the downside?
Everyday, Canadians receive some kind of offer that sounds too good to be true. At Winchester we believe that our products and services are not “too good” to be true. In fact, the products and services we offer should not be an exception in today’s market, they should be the norm. Winchester actively conducts its business working in the best interest of our clients. What is sound financial advice to Winchester’s successful operations would be sound financial advice to the economic health and success of our clients and vice versa.
The downside to our program is slight and simple. Our investment is structured to provide our clients with little to no out of pocket expense to own a quality piece of real estate. Many of our clients rely on tax savings to subsidize their investment contributions. Should a client lose employment, they can still benefit from the program, only their tax savings will diminish and their investment would require a greater out of pocket expense.
Why is it important to own real estate?
Historically, real estate has proven to be the greatest wealth-builder for individual investors. Although we have seen the rise of securitization and “paper” investments, real-estate is more than just a way to diversify one’s portfolio. Real estate investing can prove a profitable option for those who are actively engaged in an asset allocation program. Carefully selected income properties have real long-term value secured by tangible brick and mortar assets and are fortunately not subject to the wide fluctuations and volatility of stock markets. Even when the markets are flat, real estate can still produce high returns.
How to Increase Your Earnings and Build Wealth With Real Estate:
- Income Flow
- Accumulation of assets
- Preservation of capital
- Stability
- Protection against inflation
- Leverage
- Tax advantages
A Real Estate Investment Trust, R.E.I.T. for short, originated in the United States in the 1960’s as a security that allowed a group of individuals to invest in real estate. They were introduced to Canadians in the early 1990’s to allow unit holders to invest in professionally-managed real estate properties, much the same way Americans were privy to. For investors who preferred real estate to other investments and did not have the substantial amount of capital required to regularly invest in brick and mortar, R.E.I.T.’s provided a vehicle by which they could invest in such assets.
R.E.I.T.’s were designed to be a “flow-through entity” (F.T.E.) investment. Essentially, this means a R.E.I.T. is a trust or corporation that serves as a conduit for the real estate investments of its shareholders. They are responsible for distributing the majority of income cash flows to investors. As a unit holder in the R.E.I.T., a proportional share of the profits is distributed to you. R.E.I.T.’s offer investors future reliable income, growth, security, and tax-saving benefits.
Tax Advantages for the Investor
It is extremely difficult for most individuals to accumulate any real savings from their work salary alone due to the progressive tax system in Canada. The more money you make, the more taxes you pay. People work very hard to save, and when they do save some monies, any interest earned will be taxed as ordinary income. Certain types of investments and investment techniques allow an investor to take advantage of opportunities to avoid undue taxes. The less tax you pay, the higher your return will be on any given investment. A real estate investor is able to take advantage of a number of tax planning techniques and strategies.
The Canada Revenue Agency termed R.E.I.T.’s “flow-through entities” (F.T.E.’s) for this particular reason: individual unit holders are permitted “flow-through” income remuneration and tax deductions that are usually only available to individuals who directly own the real estate asset. Real estate investments offer steady appreciation and deliver a strong, inflation-adjusted annual income. In addition, leverage and tax advantages are powerful investment tools.
S.T.A.R.T. provides a method of reducing taxable income. This results in a reduction of the payments made to tax collecting entities, including federal and provincial governments. Governments allow individuals to invest in their own pension in order to reduce the burden of the government funded pension system. S.T.A.R.T. provides tax savings that simply allow otherwise paid money for taxes to subsidize your retirement investment plan.
Effective Tax Planning
Tax evasion is an effort or practice to not pay taxes by illegal means. A few individuals may attempt to stretch the limits of legal interpretation of the Canadian income tax laws. Effective Tax Planning is certainly not illegal, and it is possible to reduce your tax liability within the framework of the Canadian tax laws.
Real estate makes good tax sense. S.T.A.R.T. makes even more sense. To begin with, your financial services are tax deductible. The cost of these financial services is included in the purchase price of units and is therefore treated as an expense for tax purposes. Also, interest paid on purchase loans is also deductible. Real estate continues to be one of the most Effective Tax Panning vehicles available and proven long-term investments.
What is a Tax-Assisted Real Estate Investment Offering?
A Real Estate investment trust is an equity formed in order to offer the
opportunity to smaller investors to channel private savings into real
estate investment ventures that would otherwise be beyond their financial
and managerial capabilities. Many firms are in the business of acquiring,
managing and selling real estate projects. They do not usually invest much
of their own capital. Rather, they act more as agents, bringing together
other investors with capital that forms the equity base for acquiring the
property and benefit from the fees they receive for their services and
interest retained from the property.
Winchester Financial Group does not pool investor’s capital together.
Rather, Winchester finds properties for sale that have an unusual profit
potential and acquire the property. We then use the expertise of our real
estate professionals to develop, manage and operate the asset. Winchester
then provides this real estate venture to investors, as an operational
profit-maximizing property. Winchester acts as an agent on behalf of the
group of investors to continually manage, re-develop and operate the
property. The investors then reap the benefits of owning undivided
interests in the asset, providing them with tax benefits in the early
years and future cash flow income.
Private R.E.I.T.’s offer:
- Undivided ownership interest in brick and mortar assets
- Low risk
- Protection against inflation
- No subjection to market volatility
- Preferential tax treatment
- Relief of property management hassles
- Potential for capital appreciation
- Passive income for life
- Low correlation to both equity and fixed income securities, providing further diversification of an existing portfolio.
- Further diversification of an existing investment in local real estate
Who is an Accredited Investor?
In order for an individual to qualify as an accredited investor, he or shemust accomplish at least one of the following:
- Earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
- Have Financial Assets greater than $1 million, either individually or jointly with his or her spouse.
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