All Forum Posts by: Daniel McNulty

@Benjamin A Ersing

It is rare that you find a traditional financial planner that has one of those expertise let alone all of those. 

Each alternative asset class comes with its own underwriting and sourcing efforts. While you may find a single planner that can sufficiently model your retirement cash flow needs, you are likely to find that a whole lineup of planners / advisers can best serve you in sourcing the broader spectrum of alternative asset classes.

Due diligence and sourcing is simply a bottle neck for anyone. Do diligence and build a team of trusted advisers and you will likely find more deals and higher quality.

@Harry Das

All is well that ends well!

@Pedro Padilla

REITs have decent income streams and the benefit of liquidity and tiny minimums.

The trade off is increased volatility and correlation to the public markets. You also rarely find value add / opportunistic growth trajectories in REITs.

Ultimately private real estate tends to offer more in terms of yield and total return but the convenience and liquidity of REITs can be useful in their own right.

@Donald Santossio

https://www.consumerfinance.gov/about-us/newsroom/cfpb-files-suit-against-loan-doctor-edgar-radjabli-deceptive-acts-practices/#:~:text=The%20Bureau%20alleges%20that%20Loan,against%20deceptive%20acts%20or%20practices.

Looks like it was nothing close to a CD account and more likely a total fraud. Did y'all manage to get all your money back already? 

@Sharon H.

Hard to say exactly with limited info. 5k a month is achievable now and certainly so in 5 years. 

A nice mix of passive equity and debt syndicates could certainly get the job done, but it never hurts to add a few more asset types if this is your primary asset. Don't put all your eggs in one basket and you'll be fine.

Good luck with the influx of messages!

@Wala Habiby

Finding strong companies in strong sectors is akin to cash flow producing properties in a growing market. That is to say, there are D class cash flow negative stocks, A class and everything in between.

In fact many major demographic trends that are the basis for a sound a real estate investment are influenced by the likes of successful publicly traded companies investing in a community.

The stock market is just another tool in the tool belt that when used correctly can add value. But, by all means keep doing what is clearly working well for you, no one can fault you for that.

@Omar Khan

Passive investing requires patience, whether you are waiting on a deal to pay out or a deal to come along. 

Learning your own process for evaluating properties and syndications is a painful process to develop. However, it sounds like you need a top down game plan. If you don't start by defining what you are looking for, there are simply too many choices out there. Define your income needs, the property types you like and a risk budget you can live with and that will shrink the investible universe substantially. Benchmark and make relative comparisons of sponsors and deals you know to be good vs. new opportunities after you define what you are looking for.

@Danny Milea

Unless you or her are real estate professionals it is unlikely to help. 

It does sound like you need to re-evaluate your tax planning though. Assuming you have already maxed out 401ks and HSAs, it is time to consider more nuanced approaches. We often use the Charitable Remainder Trust (CRT) as a starting point if you have no control over the type of income.

CRTs not only let you take charitable deduction up to 60% of AGI, but you also can create a stream of income from the trust for yourself. 

Ultimately, you need a more creative CPA, tax advisor, etc...

Are these annualizing 5%? It sounds like you are letting the proverbial tail wag the dog in regards to taxes. 

By all accounts it sounds like you are evaluating each DST how I would evaluate every other syndication that does not have those same tax benefits. By most accounts, a syndication that produces 5% is bottom of the barrel unless you are looking at monster asset managers with core property.

Ignoring other tax deferral options that are out there, you can easily find cash on cash that is north of 8 annually. Factoring the capital gains tax of 15% you would have to give up, the annual cash on cash would still come out ahead of 5. Let alone the expected back end kicker on sale / refinance and depreciation to shield taxable income. 

Delaware statutory trust seem useful, but I struggle to see the benefit considering all factors (assuming the 5% target is accurate). 

This hurts the bottom line, BUT there must be a reconciliation of our debt load and I believe hyperinflation is a poor way out.

People will continue to find create structures to defer taxes. Deferred Sale Trusts, refinancing out equity or more tax qualified purchases will become the norm.