|
| |
Section 1031 Tax-Free Exchanges...
Most
1031
tax-free exchanges continue to hover around the 10% per annum return
range (or even less) for the purposes of keeping the gain
tax-free. But is the gain in a 1031 tax-free exchange worth the
effort? Now there are some alternatives that may make it more
conducive to your pocketbook and sanity you can look at that don't
require a degree in finance or the ability to pick stocks on a second by
second basis in order to make a real nest egg for your principals. Rainmaker
Marketing Corporation now offers an approach based upon the following:
 |
A
higher level of financial transparency than found in publicly-owned
companies traded on the major capital market exchanges.
Operating reports are available on a bi-weekly basis. All
financial reports (and these are prepared on a bi-weekly basis) must
be audit ready. When was the last time you did a 1031 tax-free
exchange that had this kind of reporting program? |
|
A
higher level of investment liquidity than has been possible in the
past due to the resale program supported by the syndication
engine. You buy when you are ready. You sell when you
decide you want to sell and the market sets the price. Accept
the auction price and close, or reject the auction price and wait
until you feel the time is right to try again. It's an open
market. |
|
You
choose the level of risk and consequent level of reward. The
syndication platform offers three (3) types of syndications ranked
as follows:
|
Pre-Construction
Phase Syndications Generally speaking, the expectation is
that these syndications will be the most risky investments on an
ongoing basis. The upside is that these syndications are
limited to a holding period of not more than three (3)
years. At the end of that holding period, the developer is
expected to refinance the project with the excess proceeds being
shared with the syndicate's investors based upon a business deal
made before the syndication closes. The expectation is for
these syndicates to generate a gross return of 150% to 300%
(over a term of no more than three (3) years). |
|
Construction
Phase Syndications. Generally speaking, the expectation of
the market is that these syndicates are less riskier than
Pre-Construction Phase Syndications. These syndicates are
also for three (3) years and the expectation is for a gross
return of 150% to 250% being paid out to the syndicate
investors. |
|
Post-Construction
Phase Syndications. Generally speaking, these syndications
are the least risky investments one would expect to make, but
these investments have holding periods of 7 to 10 years with an
expectation of a gross return of 250% to 400% being paid out to
the syndicate investors. |
|
| |
|
|
Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
|
