Interest accrued for investment purposes is deductible.

The loan could be fixed interest payment (private lenders are typically 8-10% APR), it could be floating rate loan, it could be deferred payments (i.e. you make no payments on the loan until refi, at which point you owe principal and accrued interest), etc.  

If anything, it will lead to more transactions as people will be trading up in property more often to avoid accruing 500k in gains.

Hey everyone, Just curious, how do you guys pull out accrued equity in a commercial real estate or multifamily (greater than 5 units) property?

I have >$400k saved and accruing zero interest in my savings account :(What is a good bet for my first investment property?

My thought in that scenario is that we could purchase an investment property to "househack" and/or LTR/STR and start accruing cash flow to supplement our income. 

Accrue some actuals, both financial and managerial and get smarter on reality versus theory & concept.

Most owners who are interested in this offering are looking to scale into a commercial offering without having to deal with maintenance or operations (also they don't want to be locked up 3-5 years like some syndications), have accrued taxes through multiple 1031 swaps, or those who are seeking estate/inheritance simplification.Seasoned investors have no issues with 1031's but we've also gotten into conversations with a lot of folks who get caught in the 45 day time crunch and haven't planned enough to place their capital in a better investment than what they originally started with.

Cash flow wise its no good, but equity should accrue quickly. 

If it isn't the sponsor can either choose to return it to the investor or the preferred return will start to accrue after 90 days.