He rented out apartments (6) in his Riverside Drive property, and rented out land on the Ayr farm.
Millard Properties: Locations and Ownership
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He rented out apartments (6) in his Riverside Drive property, and rented out land on the Ayr farm.
JMO, but renting out farmland isn't much of an income. We rent out some of our farmland as well, but it only helps make property taxes a little less. Our farmer doesn't even pay us anything. A friend of ours rents his land to a farmer, and charges the farmer $1000 for the year. You usually just rent your land for the tax credit. MOO
MsSherlock
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IMO, the rentals on the properties cannot be considered income until the full pictures is looked at and that's any mortgages or liens against the properties. Hypothetically, you could be collecting 10K a month in rent and have 10K a month in mortgage payments, taxes & utilities. IMO, the Bank doesn't lend out money without some form of security, whether that be a personal guarantee or mortgage on real property, some type of collateral mortgage or lending on margin, holding bonds/investments as security.
IMO, The transfer of Riverside from WM to DM may have been for tax planning-maybe WM gave the property to DM and then kept a mortgage on that property for income himself? (if that estate planning strategy was used, the property would have been mortgage free upon WM's death) JMHO It's hard to say, how much "net" cash DM was getting from rentals. As far as flipping or other real estate investments? I've seen mention of 2 different Millard companies that "could" be tied into real estate holdings/activities.
IMO, if there were any properties registered to these Co's, MSM would have dug them up by now-Millard Properties appears to be the company that has the liability for the Hangar in Waterloo and Millard Properties seems to be another company that's only asset we know of so far is DM's red truck. JMHO, but perhaps all the vehicles may be registered to this company:
Millard Properties Inc http://kitchener.ctvnews.ca/activity-at-millard-air-hangar-not-what-airport-boss-expected-1.1302652
Millard Holdings Ltd http://www.thestar.com/news/crime/2...ct_is_completely_in_shock_by_the_charges.html
AFAIK Riverside was not transferred to MB, and doubtful there was a mortgage. That was the childhood home he grew up in. Maple Gate was CM's home
MsSherlock
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Thanks MD-are you saying then that WM & MB lived in one of the 6 units on Riverside? Or did they convert it to an income property somewhere down the road? My understanding was that CM ended up living on Derry Road and WM/MB/DM lived on Maple Gate while Riverside was always an income property, then when WM & MB split, MB moved from Maple Gate to Tinsmith. IMO, you obviously have first hand knowledge, so maybe you can straighten that out for me! I'm confused now!!. :tyou:
JMHO, but it's not unusual for investors to leverage income properties for other investments.
Alethea Dice
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I've never heard that about the Derry Road property. Do you have a link?
http://www.thestar.com/news/crime/2013/05/18/tim_bosma_the_painful_search_for_a_missing_man.html
http://www.thestar.com/news/crime/2013/05/14/tim_bosma_dellen_millard_to_be_charged_with_murder.html
http://www2.macleans.ca/2013/05/16/suspect-in-test-drive-death-bought-condo-the-day-after-tim-bosmas-disappearance/
And the farm...
http://www.theglobeandmail.com/news/national/inside-the-life-of-dellen-millard-the-man-charged-with-killing-tim-bosma/article12009016/
HTH
Alethea Dice
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Renting out the land would still keep his property taxes assessed as agricultural. Since he paid cash for the farm, if the rental payments covered the taxes, it would still be an asset with no payout required.
http://www.cceontario.org/temp5.asp?id=renting-farmland
Maybe he saw some potential in it.
"Ontario Land Rental Rates Are Rising to Record Highs"
http://www.realagriculture.com/2011/03/ontario-land-rents-are-rising/
"Ontario Farmland Values rise 46 percent"
http://www.betterfarming.com/online-news/ontario-farmland-values-rise-46-cent-11086
JMO
MsSherlock
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Alethia...the Derry Road property is the one mentioned in your 3rd quote. You can cross reference the actual address here http://www.locatefamily.com/Street-Lists/Canada/ON/L5W/L5W1A1/index.html I think we should get this over to the property thread...I seem to be missing a property-IMO, it doesn't seem logical that WM, MB & DM would live in a unit at the Riverside address. :scared: And now we're here!! lol Thanks Mods!
Alethea Dice
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Thanks, MsS. The Derry Road property in my first 2 links doesn't mention that it was ever owned or lived in by Carl, only that it was owned jointly by WM and DM and subsequently sold. I had never seen anything previously about Carl's connection to it.
I can see now that I was probably misreading the first linked quote as Riverside being the childhood home, when in fact it's talking about 3 different properties - his childhood home, the Riverside property, and the Vaughan condo. I'm sure I wasn't the only one who made that mistake.
So he inherited both the Etobicoke and Derry Road properties from Carl. (According to the links, they transferred ownership in 2008. Carl died in 2006.) Did WM and DM purchase the Riverside property together, or was that handed down as well?
MsSherlock
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I know this was mentioned on another thread back in May. At the time of this article, Millardair also owns/owned Hangar#4 at Pearson and had it leased out to Air Transat. The book/article was published in 2006, so it was very close to CM's death. It appears that AT is still occupying Hangar 4
Page 165:
"He still lives on the rent from that hangar, which is now occupied by Air Transat Airline from Montreal. He had his last commercial flight check when he was 85, so he is not flying now"
http://www.mississauga.ca/file/COM/9634_MaltonBook.pdf
http://www.canadianconsultingengineer.com/esource/profile.aspx?company_id=20081139
Page 165:
"He still lives on the rent from that hangar, which is now occupied by Air Transat Airline from Montreal. He had his last commercial flight check when he was 85, so he is not flying now"
http://www.mississauga.ca/file/COM/9634_MaltonBook.pdf
http://www.canadianconsultingengineer.com/esource/profile.aspx?company_id=20081139
Snoofo
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That would be decent monthly I income, provided they still own the lands or maintain a leasehold interestat Pearson. That, along with Riverside rent, one could live off comfortably.
If the farmer who 'rents' your land does not pay you any money, I don't really think it is still considered rent, I think it might be called utilizing or borrowing or maybe sharing, in my opinion. Is your friend's farm that rents for $1000 a year the same size and in the same area as DM's by any chance so that we could accurately use that as a comparison to judge whether or not it was worth it for him to rent it out?
Again I am referring to this NP article I find chalked full of telling information. The bolded part makes me wonder, how much the bank loaned to Millardair? Obviously it would not have been peanuts so to speak. WM had to turn to the bank to borrow money for tools and payroll??!! :O It makes perfect sense to me now. Millardair is belly up if this bolded part is true. WM maybe had enough money to invest in the hangar which far exceeded costs. He needed financial aid from the Waterloo regional council to upgrade/improve the runway. Yes the coffers had run very low just before WM's death. Sounds like a total train wreck IMHO. WM's big dreams came crashing down like a house of cards. I feel so much tension and turmoil was going on over the new hangar, not only between father and son, but most involved with Millardair. It probably could have turned out to be a profitable business if someone would have cooperated, been optimistic, determined, ambitious and patient. I can see now why WM may have committed suicide OR DM murdered him.
Now the questions, where did DM get the money from to purchase condos and farmland?
*Did DM sell of tools/equipment/planes to make some money?
*DM could have borrowed money from the bank for the business, but in turn used it to purchase properties OR did the bank refuse to loan Millardair any more money?
*Before his death did WM gave DM money (DM earned it or not), to purchase the farmland? I think so, as a nest egg so to speak.
*Did WM give DM a lum sum which was to be used to purchase land and build a house?
*Did DM over spend on land, therefore didn't have enough to build a house on the land? Then changing his mind preferring a condo in a big city over country life? Or was he wanting the best of both worlds? So why not build a house on the farmland instead of buying another condo?
*Did DM purchase that last condo with the last bit in the business coffers/money borrowed from the bank which was suppose to buy tools and pay employees?
*Was DM really financially set (as per DP's claim) he didn't need to steal TB's truck, he could have purchased one? Or did it have nothing to do with money but done out of thrill/greed/or accidental?
*Sure we could say DM could have at anytime sold off those properties, but IIRC he was renting one condo out, making some income and it was an investment. If DM had no income, the rent would have been his only source.
*Was DM in arrears with the bank or Revenue Canada? Should he have sold the properties, creditors/government would have taken any proceeds to pay debts/taxes.
*Did DM try to sell off any of the properties but got no offers?
Again, the hounds would have been at the door to take it. I will not be surprised in the least to find out DM was flat broke, owing money and was purchasing these properties to "hide" money. As to why he didn't put properties into his mother's name for safe keeping is anyone's guess. I will not be surprised to find out if there were negative issues between mother and son. Being as the Millards are known to be private people, maybe DM felt it was none of his mother's business to know his financial status. All JMO and so many unanswered questions.
Dellen began asking Mr. Sharif about the value of the company and why his 71-year-old father, Wayne Millard, should continue to fund a venture whose costs already far exceeded the original estimates. “He advised [me] that the family coffers were running low and that he was very apprehensive to keep pouring money into the facility,
Millardair won the support of the local airport authority and convinced the Waterloo regional council to invest in runway improvements to accommodate larger jets. When things went over budget, bank loans provided funding for the tools and staff needed to obtain key Transport Canada certification, which came through on November 1, 2012, just before Wayne’s death.
http://news.nationalpost.com/2013/0...bosma-murder-suspect-started-to-dismantle-it/
Heading over the the properties thread Saturday/Sunday to do some reading. Hopefully find answers to my questions.
You seem to have a lot of questions here Swedie, so let me do my best to find some of the answers for you;
Yes they could have borrowed from the bank, how much, we do not know. Whether or not it's peanuts is relative to each person. And when you say they borrowed for tools and payroll, do you mean average employees like janitors and secretaries or do you mean the big salaries guys like AS were paid (dispute obviously not fulfilling his duties)? Are you also claiming that DM having no patience or ambition is what caused WM to kill himself, or that it was the business going 'belly up' (although again, I am not sure we have verification of that)? I personally know a lot of people with lazy, no good kids who are not in anyway suicidal or in fear for their lives, and many businesses that go under without the owners dying.
It is my opinion that DM has held other jobs or owned other companies prior to becoming CEO of his family's company, he did after all try other interests like cooking. It would not be so unreasonable to assume he earned a living despite being born into a comfortable family.
As was pointed out earlier, all real estate transactions require a financial check by their lawyer or real estate agent to track where the money is coming from, so it must be assumed that the properties that he bought were bought properly, using funds from an acceptable source.
I believe the tools DM was trying to sell were advertised for sale after the death of WM, and after the cancelling of the MTO certificate, although if any sold, we are not yet privy to that information. If he had borrowed large amounts of money for his business and instead put it into real estate, the bank would have noticed, this isn't a student loan, they keep a close on on the money that they lend to businesses. And if WM had given money to DM to purchase the farmland, it wouldn't have been because he knew he was going to die in a few more years, in my opinion, and if it was, what of it? Same if he gave him a gift of money to build a house, or not, what does that have to do with anything relevant here, I wonder?
If AS's account is taken word for word as the gospel, than so should the real estate agent's word that he was a nice guy buying a property who happened to bring his father along one time. In which case we should also take DP's word for it when he said DM is fine financially (so maybe not in debt to Revenue Canada or a bank) until we see proof to the contrary, otherwise we are just speculating without even circumstantial evidence to back it up, in my opinion. To me it is a waste if time speculating if he overpaid for the land, since he picked the price he paid, and the sellers afterward had felt it was worth more.
Why shouldn't he buy a condo when he owned a vacant farmland, it was obviously an investment, and whether or not he got offers for his properties before his arrest is rather moot, is it not? And generally people who are flat broke cannot purchase properties, either to hide their money (what money, they're broke?) or to turn into investment properties, banks don't lend to broke people. Whatever his relationship with his mother at the time, why would he need to put those properties into his mother's name before his arrest, why are we assuming he had to hide that he didn't feel he had to hide, I wonder?
To me, DM seemed completely reasonable in his dealing with AS that was reported, I would have asked the same questions and also would have wondered why the man hired to do his job still hadn't done his job. I think asking AS to discuss it over dinner when things got heated shows a foresight and self control that in my opinion AS did not possess, or he would have suggested it himself. I think anyone would have been apprehensive about pouring more money into something that had no returns as yet on the horizon.
And, I think someone else has already pointed out, that Waterloo invested in the airport because the are also benefitting from those improvements. <modsnip>
Snoofo
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Maybe they did live there. Wayne was frugal with himself (per obit) and since they were so involved in animal welfare maybe they had a different idea of luxury. Perhaps MB took on a management role since she knew how from her parents. She may have taught her son about property management and income property. All my own guesses.
swedie
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Let's not forget the upkeep of the hangar, properties and all of money needed to cover monthly and possible annual charges. Taxes alone would be huge on hangar. MOO.
swedie
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Millard's million-dollar properties
Millard is listed as the owner of at least four properties. His residence at 5 Maple Gate Court in Etobicoke, a Toronto suburb, used to belong to his grandparents. The tax assessment on the property is $1,072,000.
He's also listed as owning a six-unit residential building at 307 Riverside Dr. in Toronto that's assessed at $1,443,000.
Then there's the 45-hectare farm he owns at 2548 Roseville Rd. in Ayr, south of Kitchener-Waterloo, where police have been searching. Millard purchased it in 2011 for $835,000.
On May 7, the deal closed on Millard's purchase of a condo on the 37th floor at 70 Distillery Lane in downtown Toronto. Millard paid almost $628,000.
http://www.cbc.ca/news/canada/story/2013/05/13/f-dellen-millard-profile-bosma-case.html
Millard is listed as the owner of at least four properties. His residence at 5 Maple Gate Court in Etobicoke, a Toronto suburb, used to belong to his grandparents. The tax assessment on the property is $1,072,000.
He's also listed as owning a six-unit residential building at 307 Riverside Dr. in Toronto that's assessed at $1,443,000.
Then there's the 45-hectare farm he owns at 2548 Roseville Rd. in Ayr, south of Kitchener-Waterloo, where police have been searching. Millard purchased it in 2011 for $835,000.
On May 7, the deal closed on Millard's purchase of a condo on the 37th floor at 70 Distillery Lane in downtown Toronto. Millard paid almost $628,000.
http://www.cbc.ca/news/canada/story/2013/05/13/f-dellen-millard-profile-bosma-case.html
MsSherlock
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According to Farmstart.ca, the lease rate for Southern Ontario is somewhere between 50 & 120 an acre per year. From the aerial pics of the farm, it looks like only about 60-70% of it is actually tillable. So, that would be about 60-70 acres. IMO, from experience, sod leases pay the higher amount. The land on Roseville is too rolling for sod. IMHO, it would be around the 50-60 mark-approx $3000 per year? MOO
http://www.farmstart.ca/programs/start-up-farms/faq-2/
MsSherlock
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Thanks Swedie. I'm still not sure where DM grew up! Here are the land titles reports showing the transfers just for clarification-maybe they'll help :websleuther:
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The only point I was trying to make is that in this area you don't make a huge income by renting your land for farming. I live in Halton region about 15 minutes from Ayr. My friend lives in Niagara Region, which is close as well. He has 50 acres with about 30 farmed. I guess if we want to get technical, we don't 'rent', he 'uses our land'. Just MOO. :seeya:
I think I remember reading somewhere that DM was considered a shrewd businessman, in my opinion, it would not have been too shrewd to only be charging the lowest market rental rate, unless perhaps he was just a nice guy. But of course, that is just my opinion.
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