Yield on Cost vs Cash-on-Cash Return: Definitions, Calculations, and When to Use Each

Key Takeaways Cash on cash vs yield on cost contrasts two methods for evaluating real estate returns. Cash on cash shows annual pre-tax cash income divided by actual cash invested. Yield on cost demonstrates annual net operating income divided by total project cost. Both assist investors in evaluating projects at different phases and with different […]

Schedule K-1 Tax Surprises: What to Know and How to Handle Them

Key Takeaways A k-1 tax surprise is unplanned income or taxes from k-1 that impact your tax bill. These forms report a partner’s or investor’s share of profits, losses, credits and deductions from partnerships, S corporations and trusts. Some of the common surprises are late k-1s, passive loss limits and state filing. The sections below […]

Asset Protection Trusts: Basics, Types, and How to Set One Up

Key Takeaways Asset protection trusts basics describe how a trust can protect assets against creditors while still maintaining control for the settlor. These trusts differ by jurisdiction, domestic and foreign, introducing limitations of time, exceptions, and expense. Common uses are protecting business assets, rental properties, and investments from lawsuits and bankruptcy. Fundamentals include trust type, […]

Waterfall and Promote Structures in Real Estate Investing Explained

Key Takeaways Waterfalls and promote structures are engineered features that guide water flow and support recreational or ecological functions. They integrate stone, concrete, metal, or timber to mold waterfalls and direct erosion while providing aesthetic and auditory attraction. Designs, which differ by location, size, and safety requirements, focus on water flow, grade, and upkeep. A […]

Understanding UBIT and Retirement Accounts: What Triggers UBTI and How to Report It

Key Takeaways Ubit and retirement accounts refer to unrelated business income tax rules that can affect certain tax-advantaged accounts when they earn business income. These rules are primarily for self-directed IRAs, 401(k)s, and other such plans that own active businesses or partnerships. Ubit can erode the benefits of tax-advantaged accounts and necessitate filings at trust […]

How to Prepare for Capital Calls: A Practical Guide for Investors and Fund Managers

Key Takeaways Capital calls how to prepare is about how investors and fund managers respond to cash requests from investment funds. It discusses timing, cash planning, documentation, and partner communication. Proper preparation minimizes missed deadlines, penalty costs, and maintains access to follow-on deals. Actionable items include liquidity projections, authorized signers, and a clean commitment ledger. […]

Investing with an SDIRA: Step-by-Step Guide to Setting Up and Buying Real Estate

Key Takeaways Investing with SDIRA step by step details how to employ a self-directed IRA to store alternative investments. It walks through the process including deciding on a custodian, selecting eligible investments such as real estate or private equity, submitting a written investment direction, and ensuring compliance with IRS rules on prohibited transactions and disqualified […]