Whats everyones thoughts on Cadre? Also thoughts on Reliant?

Question

Hey Guys,

Looking at passive investment opportunities and deep into my self education process.  Trying to compare standard MFU Syndicate deals vs Your thoughts on Cadre?  Does anyone have any experience with them?  How are these deals handled from a tax standpoint?  Is depreciation and 1031 exchange allowed?  Target Cash on Cash return and IRR seem a little lower than typical syndicate deals?

Same question for the Self-Storage and Reliant Investments?  Does anyone have any experience with them?  How are these deals handled from a tax standpoint?  Is depreciation and 1031 exchange allowed?

Trying to do my due diligence before deploying capitol and then plan to deploy across several platforms to further diversify.  Thanks in advance for your help.

Duke

Duke Giordano · Answer

Thank you Alina very much for your thoughtful reply.

Just out of curiosity how would you compare the aforementioned Cadre/Relient; to syndicating that you may do?  Is it just a question of scale?

Alina Trigub · Answer

@Duke Giordano

Welcome to BP! My suggestion is to take the pro-active approach:

1) Search BP for the old posts on Cadre and Reliant. One simple search I did, returned the following thread: https://www.biggerpockets.com/forums/32/topics/720570-any-experience-with-on-line-investment-group-cadre

And then reach out to people in the thread for more details.

2) Have a conversation with the operators. Webinars almost always look great. In addition to that, speak with the management team members and ask the questions that are important to you. For instance, you are asking here about depreciation and 1031, ask them about it.

I'm not an advisor, but as a general rule, how the depreciation taken (especially if they take bonus depreciation) depends on how CPA allocates it after discussing it with the operator. As for 1031, if a company allows for TIC (tenancy in common), you may be able to perform 1031. I suspect that if you're considering a large operator, they will require a substantial investment sum to accommodate 1031.

Here's an additional list of questions to ask an operator that should help you have a discussion with them:

https://www.biggerpockets.com/member-blogs/10850/76728-questions-to-ask-a-syndicator

Daniel Banic · Answer

Hi , most of the companies you mentioned are good but starting out though if you want to invest with the best thats out there you go to Blackrock hedge fund in NYC , they are trillion dollar hedge dealing with stocks and bonds and they have a real estate division and they been around for years , as for the tax thing try investing in entertainment like blockbuster motion picture films , the tax benifets are excellent when it comes to that , the key though is to find a winner production company , if you need any help in that contact me , I hope that helps.