How to create Tax free income for investors

[Rian Ash]

Hi There,

I am looking at raising some capital to buy rental properties (already have 6 in Bay area/Northern California) and the numbers only work if the interest I pay to my investors is Tax-Free for them. Can anyone recommend how something like this could be done? I understand their would be a lot of nuisances but I would like to understand how directionally I should go about it and if something like this is possible? 

Thanks for your assistance!

[Basit Siddiqi]

@Rian Ash

Have the investors you spoken to mentioned that they are looking for interest that is tax-free for them?

looks like you need to find some other investors.

There are a couple ways for interest income to be tax-free but I don't see it working in your case
1) Have the investors be some tax exempt entity(501(C)(3), 401K, IRA etc)
2) You are doing a project in behalf of a municipality and the security is deemed municipal interest.