All Forum Posts by: John Sayers

One can only defer the capital gains tax until Dec 31, 2026, they you pay a reduced rate on the gains, but you pay. At that point the money in the QOF has been taxed. the 10 year benefit of the overall QOF should apply to all source of funds, not discriminate. At 10 years ALL funds in the QOF would have been taxed for any prior gains outside of the fund.

The real goal is the get areas improved for the community.  Regardless of the source of funds. One could sell off stocks for a $500k loss and roll the remaining $2MM of capital from stocks to a QOF to improve an area. They just get no equitable 10yr benefit. The 2 deferrals of course would not apply to such a person, but there has been no reason proffered why the 10yr benefit would not apply to all that try to improve an area. That's all I was saying.

The dumbest part of the whole thing is "The benefits are only available for those who have recent capital gains to invest." Why? Well, no ones seems to know (I got a generic useless reply form a Senator) , but apparently only those with prior gains are allowed to get the 10yr benefit. One could argue it's gov pandering to "rich" and giving special benefits only to one type of investor. Anyone should be able to get the same 10 yr benefit  if improving an OZ for the benefit of all in the area. (soapbox off)

All good responses! To add to the debt, look at the type and term of debt too. Different risks profiles. IRR can be confusing to some and misleading to many. Best used only as a soft indicator. A multiple is much harder to fudge.

Same here Kay Kay. IRR can be massaged to confuse the many sophisticated investors. 2 deals with the same IRR and term can yield a quite different multiple. Depends some on return OF or return ON investment, the type of cashflow over the term etc. Some don't realize they may need to be more active reinvesting sooner in some deals vs others and thus more work than they thought to keep all their funds truly at work. A multiple seems less easy to confuse on what the deal will "do" without the passive investor's intervention along the way.

Novice on BK question. So OP later said they obtained relief from stay and proceeded with FC process. So the relief still keeps the BK court involved in talking about future payments on something they have already approved to be collected/ foreclosed on and sold off? It's confusing to be able to proceed with the FC and then still talking about future payments in years to come. Very interesting, but I'm in a haze some. I'm sure I'm missing quite a bit of understanding on the data presented and BK processes, but always trying to learn more.

 I can't answer the questions but I can say the AirBnB type is being done entities I've seen like 

FARinternational. They seem to have been working it.

Have other plans.

Jay. It is 100% virtual , so online streaming to attend. No travel or location.

Gordon. Google "Note camp6.0" and its the top. on the weclosenotes site.

 The OP statement is fairly well worded as a short distillation. 

It's behooves the individual to really understand that there are a lot of conditional factors and risk weighting to be done, per individual goals, and per deal. 

IRR is a tool. Good, but can cut you too. Dangerous some as many don't understand it's not comparable to say the APY on the basic CD. Everyone generally gets a CD APY. I see too many syndicated deals where the sponsor incorrectly explains it to investors. A few calculated it incorrectly. The average person does not know discount rate, present value etc. If IRR is too fuzzy, look at the return multiple. It's simple and can't be easily used to give potentially false impressions like IRR can.

 Contract. As @Peter Fennig noted. Corner cutting is fine, until it kicks back suits, liens etc. on you or property; then it seems not so good to skip a little preventative maint step.