Wellings preferred equity receives the same depreciation allocation as common equity, and sidecar investors receive a K-1 annually3.

Many lenders have brutal release fees to break up a blanket loan these days; many are 125% of the allocated principal balance.  

I am looking to buy more properties but putting down 20-25% each time plus closing costs etc is a lot of money that I also want to allocate to other goals.I have heard partnerships are a strategy to leverage other people’s money to create deals that will benefit both sides depending on terms that are setup. 

In that I so much play an investor role more of capital allocation and Acquisition.

This helps determine the appropriate asset allocation.

Educating yourself about different investment types, asset allocation, and risk management will empower you to make informed decisions.

While passive activity losses (PALs) are allocated to each property, when determining how losses can be applied, the total passive income and losses across your properties are considered as a whole.

You have a better handle on reality than an investor who allocated 15% of $800 rent to cover vacancy and maintenance/capex.  

I would not feel great if the stated they needed x, then got x, and figured out they needed more after they closed.I would get a breakdown of what they reserves are going to be allocated towardGino

It’s typically a good idea to allocate 3-5% of the total construction cost as a contingency.