Brainstorming Ways to Reinvest Syndication Distributions? (SDIRA)

[Ryan Sarka]

I know I should just ask a syndication attorney or CPA but I am wondering if anyone here has done this before - been able to set up a syndication in such a way that distributions can be reinvested into a deal?

Let me clarify:

I am mainly wondering if this is possible for tax advantaged accounts such as a SDIRA. My gut is telling me that this cannot be done considering all of the shares are "purchased" and split accordingly with the GPs and LPs at the time of the assets closing, meaning there are no open shares for future purchase. What I am trying to avoid is having distributions just sitting, collecting dust in an account and losing value due to inflation. After getting a distribution I would like the option to reinvest in RE but I am assuming that I would need to wait until the distributions hit a minimum investment amount for any one syndicator (maybe $50k or $75k for example). Another option may be to take the distribution as cash but then I would be removing it from its tax shelter.

That being said I know that I could reinvest the distributions into stocks, mutual funds, etc. although I may need to have the funds transferred from one account to another. I'm noticing that most SDIRA companies seem to have fees for everything - monthly account maintenance, trade fees and so on that would also slowly erode the profits from the original investment.

I know this post is not exactly straight forward, I'm just trying to see what type of options there might be.

Thanks in advance for the help and advice!