Invest savings or IRA money to join a syndication?

[Rashmi Nigam]

Thinking of joining a syndication that has a 10 year horizon. Wondering if it is better to put our cash savings into it vs. investing via our IRA? Would love to hear pros and cons of cash vs. IRA and any gotchas to look out for.

Thanks!   

[Charles Kao]

@Rashmi Nigam

I would not do an IRA because most of your gains will be offset because of accelerated depreciation anyways so then deferred taxation is no longer a benefit. In addition if for some reason there is a capital call you have to make sure you have the money for it. Read over the offering memorandum clearly to see how both of these situations are handled. I was considering the same awhile back because I mainly wanted to see how the syndication was run. Now if you have alot of IRA funds to invest and less capital outside of it then that may be a consideration.