Archive | Real Estate Crowdfunding

Can I Use My Self-Directed IRA For Real Estate Crowdfunding?

Self-directed IRAs (“SDIRA”) are increasing in popularity.  More and more investors are getting bored with traditional investments (stocks, bonds, mutual funds, etc) and seeking out alternative investments in the search for higher returns.  The SDIRA landscape is changing as a variety of investments are being introduced to the market. There is no doubt that SDIRAs […]

Listing of Real Estate Crowdfunding Portals

Real estate crowdfunding is here to stay.  The industry is growing at breathtaking speed.  New players are coming into the market everyday. As one would expect, many of these new crowdfunders may go under in the coming years.  But time will tell which ones succeed.  Below of a list of many of the players: aCrowd […]

Crowdfunding Real Estate: State Tax Implications

When it comes to crowdfunding real estate, there are many questions surrounding state taxes.  In a partnership, the sponsor may be required to make distributions to cover investor state tax liabilities. Many states have recently tightened regulations on how and when withholding is required at the partner level. One issue that investors don’t often understand […]

Real Estate Crowdfunding: Tax Considerations for Foreign Investors

Over the last decade we have seen a significant increase in foreign investment in U.S. real estate. With recent real estate crowdfunding options in the marketplace, it clearly makes sense that certain non-resident investors are considering crowdfunding equity investments. Let’s examine many of the tax considerations that will impact these foreign investors as they venture […]

State Tax Issues & Real Estate Crowdfunding

Crowdfunding for real estate continues to gain momentum.  As a result, certain important tax questions arise. One such question relates to dealing with state tax consequences on equity deals and whether investors are required to file income tax returns (and of course pay income tax) in the states where the real property is located or […]

Real Estate Crowdfunding: Understanding Sponsor Fees

Real estate crowdfunding has been growing in popularity.  The benefits are great to both the investor and the syndicator (or “sponsor”).  Sponsors can benefit from greater access to investor funds, while investors can benefit from pooling their funds to acquire real estate projects that would not normally be available to them. Sponsors typically make money […]

Real Estate Crowdfunding: Tax Differences Between Equity & Debt Deals

Real estate syndication has been around for decades. But the syndication process has evolved in recent years with new crowdfunding options. Real estate crowdfunding deals are generally classified as either “equity” deals or “debt” deals and each can have different tax implications. Let’s take a closer look at the differences. Equity Deals When it comes […]

Buying US Real Estate

Real Estate Crowdfunding: The Role of the Sponsor

The entity that acquires, maintains, manages and ultimately sells the real estate is called the “syndicator” or “sponsor”. These terms will be used interchangeably. A typical syndication combines the money of individual investors with the management of the sponsor, and has a three-phase cycle: origination (planning, acquiring property, satisfying registration and disclosure rules, and marketing); […]

Understanding State Taxation of Tangibles & Intangibles

Federal tax law is difficult enough to understand.  But state tax law can be even more cumbersome, especially considering the variation from state to state.  Upon closer examination though, there are some general themes that one can examine as it relates to state taxation.  The goal herein is to examine a few of these differences. […]

Real Estate Crowdfunding: Depreciation is the Investor’s Best Friend

Real estate crowdfunding is becoming a very popular way for investors to get into the real estate market.  They don’t have to manage the day to day operations of the property, but will be able to obtain cash flow and a percent of the profits upon disposition.  Most real estate investors understand the basics of […]