How? SDIRA buying in to Rental Business. Splitting Depreciation.

[Carlos Flores]

I am trying to understand how this deal could be structured. Assumptions: new LLC being formed in Texas to buy a multifamily with recourse financing. Three people/entities, one of the three is a SDIRA LLC. Capital injection not equal among the three but monthly distributions (cash flow) and profit on sale will be split equally among the three. Lets not get in to who is doing what, what their injection/contribution is, why the split is this way, etc.

Does it matter if the SDIRA LLC is involved up front in the formation or if it buys in to the "business" after formation (before the asset is acquired)?

Since the SDIRA can't take depreciation, how does this work? Can depreciation be given to one or the other two people?

Anyone doing something similar in Texas or elsewhere?