RRSP INVESTMENT STEPS IN DETAIL
Here in detail, are the steps you take to become a Limited Partnership Investor with Prestigious Properties.
Step 1 – Opening an Account with OlympiaTrust – Green Forms
Please fill in the OlympiaTrust account forms (green forms) to open an account with OlympiaTrust. OlympiaTrust will be your trustee. This trustee operates at arms length to you and to us. Since you will tell OlympiaTrust what to invest in, your account is also referred to as a self-directed RRSP.
If you have money at another institution, and wish to move money into this new RRSP account (now administered by OlympiaTrust), please fill in the attached account transfer form. This process of transferring securities or money from another RRSP trustee can take up to six weeks. We can accept an investment into Prestigious Properties only once it has been transferred into your OlympiaTrust account.
If you wish to add money into this RRSP directly (i.e. not from another institution) please attach a cheque made out to “OlympiaTrust c/o <YOUR NAME> RRSP Account” with the investment amount plus any RRSP fees. OlympiaTrust will mail you a receipt that you can use for tax purposes.
OlympiaTrust Admin Fee: Please add sufficient $s to your transferred amount or the cheque to cover the annual RRSP admin fee of $125 and $75 + GST ($210 in total) for the bonds you will be purchasing from Prestigious Properties Kings Castle RRSP Inc.
We will forward these forms/cheques to OlympiaTrust on your behalf.
Step 2 – Using RRSP Money to Invest – Pink Forms
Please read and understand the offering memorandum entitled Prestigious Properties Kings Castle RRSP Inc. Please fill in the associated signatures pages (pink forms) to instruct OlympiaTrust to use your RRSP money to purchase bonds issued by Prestigious Properties Kings Castle RRSP Inc. Each bond is worth $49 and pays or accrues 4.5% annually. This interest may be accrued and may not necessarily be paid annually.
To participate in the possibly equity gain or return in addition to an annual 4.5% you (or someone you designate for estate planning or tax reduction purposes) must purchase shares in a corporation called Prestigious Properties Kings Castle RRSP Inc.outside of your RRSP. For each bond worth $49 in the RRSP you must purchase one share for $1 outside the RRSP. So, for example, if you invest $50,000 you must buy 1000 shares for $1000. This allows you personally (or the dedicated person) to participate in the non-fixed portion of the underlying real estate that we will purchase with the proceeds from the RRSP bond. These shares are not RRSP eligible. We may later, if more than 150 investors invest in RRSP’s and if we elect to go this route, make these shares RRSP or even TFSA eligible. This is called “public company election” as a securities in a public company are RRSP or TFSA eligible. Thus, all your gains may end up in the RRSP (or a portion in the TFSA).
Please include a personal cheque with the right investment amount to purchase those shares.
Schedule A1 and A2: Please fill out schedule A1 and A2 and sign where indicated. Each LP unit (worth $5,000) requires the purchase of 100 bonds at $49 per bond plus 100 shares for $1 each. So, for example, if you invest $50,000 you must purchase 1000 bonds in your RRSP and 1000 shares outside the RRSP.
Schedule B: Please read, fill out and sign this risk acknowledgement form.
Schedule C: If you reside outside of Ontario you must fill out this page. You must check the appropriate box to be eligible to invest. If none of these boxes apply to you, you are not eligible to invest. Be truthful, please !
Schedule D: For residents of Ontario ONLY: you must be an accredited investor in these provinces to invest. You must fill out schedule D and initial on its Appendix A where applicable.
Schedule E: If you reside outside of Ontario you must fill out this page. The name of the “seller” is usually the contact person you will deal with, such as Travis or Scotty or any 3rd party that we may have engaged and that may be paid a commission.
Addendum 1 & 2: Please fill out and sign and/or witness where indicated these addenda that indemnifies you to OlympiaTrust
Indemnity / Authorization Forms: Please fill out and sign the indemnity agreement that indemnifies OlympiaTrust, and the form that authorizes OlympiaTrust to provide RRSP bond related data to us.
Prestigious Properties Kings Castle RRSP Inc. is a subsidiary of Target, a publicly traded corporation. Therefore, this bond is RRSP eligible. It pays or accrues 4.5% annually to your RRSP, while any potential gain over and above 5.0% annually will be attributed to the privately held shares. Target receives 0.5% annually for its supervisory and bond administration services – until those shares become RRSP eligible.
Step 3 – Mail Cheques and Forms to Prestigious Properties
Please mail all forms including cheques to:
Prestigious Properties Group c/o Christa Daimer #912, 743 Railway Ave. Canmore, AB T1W 1P2
We will forward the forms and cheques to OlympiaTrust on your behalf.
Please feel free to call or e-mail us with any questions !
T: 403-678-3330 E: christa@prestprop.com.
