Churchill International
Property Corporation continues to introduce new and
interesting investment offerings that incorporate
an RRSP component and an open un-registered investment
unit into one partnership investment that acquires
revenue properties. Their stated goal with this unique
investment structure is to "let small investors
participate in cash-flowing real estate opportunities
in the same manner that large institutions invest."
Founded in 1985, our results
speak for themselves. We have owned, operated, developed
and sold over $900,000,000 in real estate assets,
much for private investors. We have achieved average
annual returns in excess of 16%; and we have never
lost a single dollar of investment capital.
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Q: How are investors able to
use their RRSP funds to acquire this real estate
investment?
A: By structuring the ownership
with a portion of the down-payment equity (80%)
being an RRSP eligible debenture that earns
tax-sheltered interest income, and the remaining
equity (20%) as an open limited partnership
unit, this permits investors to utilize their
RRSP to invest in real estate. Not only our
the debentures RRSP eligible they can aslo be
held in a RESP, RRIF and a tax free savings
account (TFSA)
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Q: Why is the investment only 80% RRSP
eligible, with the remaining 20% being
an open investment?
A: It was purposely structured in this
manner for tax efficiency. By structuring the offering
with 20% of the equity invested as an open un-registered
holding, investors are able to receive some annual
tax deductions and in the future when the investment
is sold, any capital gains flow outside of the RRSP
to the open investment unit thereby ensuring maximum
tax efficiency with the favorable capital gains treatment.
Q: Are Real Estate investments too
risky for RRSPs, RESPs and RRIFs?
A: Professionally managed quality cash
flowing real estate is one of the most conservative
and stable asset classes available to investors. Life
Insurance Companies, Pension Plans, Endowments, and
Large Institutions all hold significant portions of
their portfolios in cash flowing real estate due to
its conservative nature.
Q: Why are you offering a mixed portfolio
of properties under one offering rather than a single
asset?
A: By offering a portfolio of assets
the investors get a more conservative investment diversified
by location and asset class while enjoying a solid
annual cash flow yield.
Q: What is your targeted yield to investors?
A: Our targeted yield is 10-14% which
comes from annual cash flow of 6-8%, mortgage principal
pay down of approximately 3% per year, and another
3% by per annum by repositioning to add value.
Q: Have any of the Churchill Real Estate
Funds lost money for an investor?
A: Churchill Property has always returned
the investors capital and a profit in their real estate
funds.