Archive | Real Estate

Real Estate Crowdfunding: Pros & Cons for the Real Estate Investor

With real estate crowdfunding becoming more and more popular, it is time to take a close look at the pros and cons for the real estate investor.  Crowdfunding investors typically play a passive role in the operation of the real estate. The following are typical characteristics of the investors: • They hold a large percentage […]

Real Estate Crowdfunding Tax Implications

Understanding real estate crowdfunding tax implications can be tough.  The deals are often structured differently and many real estate crowdfunding portals offer “debt” deals as well as “equity” deals.  We are going to take a closer look at the taxation of “equity” deals. No matter the legal structure of the real estate syndication, they are […]

Real Estate Crowdfunding: Understanding the Capital Structure

Structuring a real estate crowdfunding deal can be difficult.  The form of organization involves practical as well as legal and tax considerations. There are many entity structures available with each having certain advantages and disadvantages. Let’s first examine some background on real estate syndications.  Historically, limited partnerships were the most common ownership structure for real […]

What is Real Estate Crowdfunding?

Real estate crowdfunding is just an extension of real estate syndication.  Syndication is essentially pooling your investment funds with other investors to acquire an interest in real estate. Syndicators and investors are equally important in the syndication process and, if structured properly, both have the ability to participate in a financially lucrative investment. The term […]

Tax Strategies for Real Estate Crowdfunding Investors

If you want to own real estate but do not want to be a landlord, then real estate crowdfunding may be for you. You will be able to participate in the cash flows and capital appreciation of the project, but will not have the responsibility of day to day management. It can be a win-win […]

Real Estate Crowdfunding Creates Tax Questions

Real estate crowdfunding is a form of real estate syndication. This form of investment has become more common in recent days, but investors often get confused on the tax treatment. The tax treatment is certainly different from other forms of investments, like stocks and bonds. But the issues can be simplified, so let’s take a […]

Tax Tips: Advantages to Being Classified as a Real Estate Dealer

There are a lot of folks who advocate avoiding dealer status when it comes to real estate activities.  The general reason is to avoid paying self-employment taxes and possibly to enjoy long term capital gains rates (depending on the situation). There are very valid reasons to avoid dealer status, but you need to also realize […]