Run an Opco/Propco model.If your business utilizes real estate as part of ongoing operations you can get all the tax benefits of active RE by having the building purchase and hold the RE.3.

Run an Opco/Propco model.If your business utilizes real estate as part of ongoing operations you can get all the tax benefits of active RE by having the building purchase and hold the RE.3.

Hi Bigger Pockets Community,We currently manage 1000 odd doors across two cities in the co-living space in an opco/propco structure. 

Our firm has also branched out into OpCo investments because of how closely we work with PE groups, so it sounds like we'll have plenty to talk about. 

As mentioned previously, if it is a co-op, co-ops can be challenging to qualify for.

Funds raised by this entity will be used to fund asset purchases via loans to either the OpCo (for fix and flips, etc) or the entity that takes title to the buy-and-hold assets.

Said another way, having investors borrow money to OpCo doesn’t scale very well.

Gamestop should issue shares, buy their "undesirable" retail and do an OpCo - PropCo split; spinning of their real estate into a REIT refinancing some of their expensive debt as property level mortgages along the way.Personally had $3 calls at $3.05 in April 2020 before Ryan Cohen got involved - made a nice chunk of change but peanuts compared to the $50 million Keith Patrick Gill (u/deep****ingvalue) made!

AMC has been wise to issue shares at these sky high prices but wouldn't it be wiser to buy their "undesirable", discounted theaters and do an OpCo - PropCo split; spinning of their real estate into a REIT refinancing some of their expensive debt as property level mortgages along the wayWould be a hell of a lot more tax efficient! 

I understand that the conventional method of syndicating with the Op Co Prop Co setup in separate LLC's does not work with 1031 exchanges because the investor is investing in the company, not the real estate.