Private Money Lending are individuals, people just like you and me that are loaning money out for far better returns on their investment accounts such as the following:
• Certificates of Deposit
• Money Market Accounts
• Savings Accounts
• Investment Capital
• IRA and Retirement Accounts
• Home Equity Lines
• Brokerage Accounts
The private lender does not incur any costs or fees. The private lenders principle loan amount remains in its entirety and accrues daily simple interest. The closing agent prepares all of the paperwork.
The tax benefits are whatever your capital gains you received are not taxable as long as they go back into your IRA and Retirement accounts after each transaction per property.
There is a blog post to learn more about: "Private Lending"
A multifamily syndication is a real estate deal where active investors gather funds from passive investors to buy, acquire, or fix up multifamily properties. These syndications can be small with a few investors or large with thousands. Syndication lets investors join bigger real estate deals than they could alone or in smaller groups, helping both passive and active investors grow their wealth.
General partners (GPs - That's us and the operators) play a key role in the investment process. They raise funds, choose and buy multifamily properties, and handle disbursements to passive investors (LPs). GPs also decide when to sell the property. Besides regular disbursements, they return the initial capital and any profits to LPs at the deal's end. GPs bear most of the risk and liability, earning extra fees and, based on the property's success, possibly a higher return on investment.
Limited partners (LPs - That's YOU) just put their money into the syndication and get passive income. Unlike GPs, they don't take part in the real estate investment process. LPs are usually not legally or financially responsible for anything in the syndication and only risk losing their initial investment if something goes wrong.
Limited partners in a real estate syndication are generally paid in two ways. Provided the property is profitable, they will generally get monthly or quarterly disbursements derived from the property’s rental income. In addition, when the property is sold or refinanced (with cash out), the LPs will get a larger, one-time, lump-sum distribution.
Syndications have a variety of tax benefits for both active and passive investors. The amount of tax benefits an investor can utilize is proportional to their ownership in the property. Some of these include:
• Depreciation Deductions
• Cash-Out Refinancing
• Mortgage Interest Deductions
• 1031 Exchanges
We all have a comfort level of what we are comfortable with. If you wish to be on the mailing list for when we have a deal we can invite you to a webinar about how either of these work. And you can make a smart and informed choice for your future.
The journey starts here. Begin your journey in
Private Money Lending or Multi-Family real estate investing.
You can also JV Partner in other real estate investments. Ask about it.