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Updated almost 4 years ago,
ROBS or SDIRA - 20 year plan?
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?