All Forum Posts by: Daniel McNulty

@Ryan Ogletree

It sounds like you have never syndicated, created a partnership or invested in syndication / partnership.

Start with some education on what is involved (not random questions on here) and hire an attorney to help draft and structure the legal vehicle.

Just google it. Lots of good stuff out there.

@Mahinda Horapakse

You see them frequently in the mega fund space. Institutional offerings often do so to match the liquidity (or lack there of) needs of their institutional investors.

What you end up seeing is core property with core returns: 5-8%.

@Dan Blaylock

There’s no such firm. It’s rather expensive to be registered. More importantly that firm would be obligated to monitor your outside business activities. In this case that would be a large undertaking it seems.

Also most RIAs have investment monitoring policies that would prevent you from investing on your own and potentially from even doing crowdfunding.

Let us know if you find some firm though. You are not the only one I know of going down that rabbit hole.

@Chris Talley

Look into qualifying for asset based mortgages. Most private banks offer them. Generally 1M in assets will qualify you for 10-15k in annual income. So your client likely can get it done that way.

@Carol Burns

Invest passively in syndications. No income required.

How much and with whom is always the tricky part. Give the forums a gander, there is lots of quality info on here to digest on where to start.

@Peter Morgan

DSTs and QOZs eliminate the hectic time constraints and the need to be local. It’s worth researching.

@Jonathan Gordon

Equity based credit lines like the one you mentioned at Wells Fargo is my go to. They have many different names, but can be a low cost option if used correctly. Try to keep LTV below 20-30% and you should be fine.

Shop around for a better rate if Wells didn’t offer you a good one.

@Kari Kraus

If you are trying to exit to passive without paying taxes you basically are limited to DST or QOZ.

There are plenty of good and bad options for each. As with anything, do your own diligence.

Congrats on the big win. A spend rate of 200 - 250k is a very sustainable SWR on 10 M. 

Put together a a higher level asset allocation plan. Beware of uncle sams bill both on the sale of your business and going forward as you consider where to allocate.

My 2 cents, the bond market isnt particularly attractive for the foreseeable future and is more likely to actually lose you money, especially with longer duration.

Be aware of costs, stick to low expense ratio ETFs and go passive in the the equity markets if you do not have any macro thoughts of your own.

As far as real estate goes, BP is a great place to learn the ropes, especially if you are interested in swinging a hammer and buying direct properties. If you want to be more passive, look at funds and syndicates to fill that void. 

Good luck.

@Sam Rogers

The key to them as I understand it is you become a creditor to the trust and are paid back in a predetermined set of installments. You as the creditor are collateralized by said portfolio now in the trust.

Installment sales are not new, but DSTs pushed the boundary of what is the economic substance of the transaction and whether or not you have constructive receipt of the money.

To make a long story short, i am told there are quite a few complexities and fees that make it only practical at scale. However, over the last 20 years there have been no Tax Court decisions against it... so it clearly isn’t all a sham.

My 2 cents. At 100k you are probably better off in a 1031 or just paying the tax.