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Concepts

November 5, 2024

7 min read

Why a Distribution May Be Classified as Return of Capital (and Why That’s a Good Thing)

Have you ever received a distribution from a real estate fund or syndication...

Let’s start by clarifying the difference between cash flow and taxable income. In real estate funds, cash flow represents actual cash generated from sources like rental income or lending activities, but taxable income is often much lower than cash flow because of non-cash deductions—especially depreciation.

Depreciation is a valuable tax tool in real estate. It allows funds to deduct the “wear and tear” on assets from their taxable income without reducing actual cash flow. The result? Funds often have much more cash to distribute than taxable income to report.

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January 23, 2023

6 min read

Unlocking Portfolio Potential: The Case for Including Private Real Estate

Investing is a balancing act between risk and reward. To construct ...

Investing is a balancing act between risk and reward. To construct a high-performing, well-balanced portfolio, diversification across asset classes is key. By looking at the historical data, recent studies underscore the value of private real estate in enhancing portfolio performance.

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