ROBS or SDIRA - 20 year plan?

[JD Klein]

Trying to figure out a 20 year plan to use a ROBS or SDIRA to invest and hold RE. My ROBS/C Corp just sold a franchise. Now I have capital to invest. Here's what I've learned lately. Again - trying to think about a 20 year plan...

ROBS/C-Corp - double taxation, no step up basis, model relies on moderate future tax rates, cost of capital and 1031 BUT - the C Corp CAN obtain financing - should I just buy a property a year, cash out REFI, 1031, plan on only pulling cash out when we need it?

vs

SDIRA - no self dealing/more restrictive in my participation, more favorable tax structure BUT - the SDIRA CANNOT obtain financing, I'd need seller fin or just pay cash. Lose out on leverage.

Are there any cases where people just accumulate property over 15-20 years in a C Corp? How do they exit, or is it just a bag of flaming taxes at some point?

[Brian Eastman]

@JD Klein

As I said, speak to your ROBS provider and probably your CPA as well.  I'm touching on the top level, and there are a whole lot of fairly complex layers to what you are trying to address.

Your outline is what I would refer to as "wedging" a solution into your structure as opposed to using the structure for its intended purpose.  

I do not know anyone who holds rentals in a C Corp.  I also don't know anyone who hunts squirrel with a bazooka, or who paints a house with an artist's brush.  You simply don't use a tool that is that poorly suited to the job at hand.

There are several lenders who will do smaller non-recourse loans to an IRA.