Syndication - Limited Investors
Good day BP community!
We have a potential investment with a Syndication for a 10-unit apartment renovated for short-term rentals. We are coming into the Syndication as Limited Partner by adding capital to the fund.
We have two potential scenarios that want to share and welcome any knowledge/advise on the financial/accounting side of this.
Property Incentives:
- 10.5% ROI for the first 5 yrs
- Full investment Payback on year 5
- Tax-free cash-flow
- % Ownership for the life of the property
Juan went into the investment with a Personal Loan of $100k @ 15%/80yr due to be payed in 4yrs (with no Prepayment Penalty) while Carlos went into the investment with hard cash of $50k.
Which one is the best scenario? Any tax deductible benefits for any?
Thanks for your input.
The Brothers