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Updated over 2 years ago,
ONLY looking for FEEDBACK from residential rental owners!
**ONLY looking for FEEDBACK here. Negative feedback is encouraged**
BACKGROUND INFO: I have an innovative investment strategy that gives folks a unique way to invest in commercial RE without having to move capital. This offering allows investors to contribute their property into a commercial RE fund through a tax deferred event, receiving fund units and immediate cash flow on the full equity contributed.
MY QUESTIONS TO YALL:
What are the negatives you see through this process?
Why wouldn't you consider this option?
What 'holes' do you see?
(Flip side) any good things you'd highlight?
Timeline goes as follows:
1) Intake: Property owner completes intake form detailing property specifications
2) Assessment: management team completes market, sales, and property analysis
3) Net Equity: Property Value-Owner's Debt-Estimate of Closing Costs=Property Owner's Net equity
4) Contribution: Property owner contributes property into the fund. Property owner receives units equal to total dollar amount of net equity
5) Dividend: Property owner immediately begins to receive passive dividends and any tax benefits from the fund's diversified pool of assets
Obviously, we think this is a great idea and opportunity for folks to capitalize on appreciation, defer taxes from 1031 swaps or cap gains, continue to cash flow on their investment while handing over maintenance and operations, possibly absorb any unfavorable debt that's currently in the property, and make their investment more inheritable/transferable.
The investors we've recently had success with was a guy who wanted to defer taxes from multiple 1031 swaps while forging owners operations and another who wanted to capitalize on build up equity and appreciation.
Any feedback would be awesome. Thanks yall!