This is an alternative approach for newly constructed buildings.RESIDUAL ESTIMATION APPROACHThis approach determines the cost of short-lived assets, such as 5 or 7 year property and subtracts them from the total project cost.

If passive income is the priority, hiring a good property manager could ease the burden while keeping the asset working for you.

The seller was willing to take a secondary position on other property assets and provide a 3yr 4% interest on his loan.

Encourages Larger Investments: By offering higher returns at higher tiers, you incentivize investors to allocate more capital to your projects.Builds Long-Term Relationships: Investors appreciate being rewarded for deeper commitments, which helps foster trust and repeat business.Scales with Your Business: This structure can align with the complexity or scale of your projects, ensuring that you have the resources you need while staying competitive in the market.Key Benefits to InvestorsSecurity: Deals can be secured by tangible assets, such as a deed of trust or promissory note, providing peace of mind.Flexibility: Payments can be structured to suit the investor’s needs—monthly, quarterly, or upon project completion.Attractive Returns: With returns starting at 15%, investors often see better yields than traditional investment vehicles, like stocks or mutual funds.How We’ve Implemented ThisThis structure works particularly well for our large renovation or development projects where multiple investors may be involved.

In efforts to get more experience with IOS, we are seeking a financial partner that potentially has experience with this asset class. 

Hi Ricky,Being in operation for 10 years with mid seven figures of assets and NNN leases,it would be wise to speak with your tax advisor regarding if the tax set up should be an LLC, an S-Corp  or a C-Corp.It would also be wise to speak with an asset protection attorney to find out if this is something that might be beneficial to you in that area.

If you do end up segregating, keep good records to prevent having to recapture the depreciation of the reclassified assets.

they usually say stick it in the bank.. so you can offer them a nice return above bank CDs and on an asset they already know and like etc..

When I buy property, I am long assets. 

Thriving financially is one aspect; the human side keeps people engaged and loyal.Do expectations vary by property type or asset class?