How to set up loans or partnership with Private Investor looking for tax advantages?

[Daniel Dietz]

Hello,

I am looking for ideas of how to set up either a 'loan method' or a partnership with an individual private investor who has as a couple of his main objectives to 1) reduce his current tax liability, and 2) make a return as good or better than stocks/mutual funds while diversifying, and 3) possibly turn these loans/investments in a good 'income stream' in about 10 or so years when he is ready to retire.

Our scenario is this;

I have almost all of my liquid assets in my IRA, SDIRA, which I would not mind using if needed, but obviously more restricted as far as doing the work myself etc... and my own house equity, which I would rather not tap into at this point. I have rentals and think I do a good job of buying them right to get a good return, and enjoy managing them. I have a fairly humble income, so not a lot of 'yearly cash' to put into things.

He has the a healthy does of funds in his 401K at work, but is not planning on leaving that job for at least 3 years, and smaller amount in a ROTH IRA. But what he is mostly concerned with is somehow 'deferring taxes' on some of his current income. It sounds like he could have up at least 50K per year that he would have available to invest. He could also likely qualify for loan(s) for buy-n-hold properties if they would be a good strategy. His income (with spouse) is in the 200K+ range, and they only have a mortgage of about 200K with no other major debt.

Most of my research has been on investing from within my SDIRA, so I am not as familiar with strategies outside of that. Also, I have more knowledge of buy-n-hold rentals and the potential tax advantages compared to fix-n-flips, which seem to me (again no experience here) to not really have advantages from a tax standpoint. 

The returns we can get in our market with 75% LTV @ 5% rates and figure 50% expenses are about 12-15% without any appreciation, and 18-30% figuring appreciation of 2.5% (our historic is about 3.5% over the last 50 years).

Thoughts or questions?

Thanks for any help, 

Dan Dietz