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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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March 2, 2020

5 min read

How to Choose the Right Real Estate Fund for your Portfolio...

As an accredited investor, you have the opportunity to invest...

As an accredited investor, you have the opportunity to invest in a variety of alternative assets, including multifamily real estate development funds. These funds offer a unique investment opportunity, providing access to a stable asset class with the potential for strong returns.

But with so many options available, how do you choose the right multifamily real estate development fund for your investment portfolio? Here are some tips and advice for selecting a fund that aligns with your investment goals and risk tolerance:

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