When GPs ask us, “What’s the best entity structure for a real estate fund?” they usually mean the fund entity itself. Should it be an LLC or a limited partnership? That’s the wrong question. Or at least, it’s an incomplete one. Your fund isn’t one entity. It’s a stack of entities, and each one serves […]
Best Entity Structure for a Real Estate Fund: LP, LLC, or Something Else? Read More »
Cost segregation is one of those strategies that every real estate fund manager has heard about, but few fully understand at the fund level. Most of the content online explains it for individual investors. Buy a rental property, run a cost seg study, take a big first-year deduction. At the fund level, it’s more nuanced.
Cost Segregation for Real Estate Funds: When It Makes Sense and How It Works Read More »
If you manage a real estate fund, you already know that depreciation is one of the most powerful tax tools available to your investors. What you might not fully appreciate is how dramatically the rules just changed, and what that means for how you acquire, hold, and communicate the tax benefits of your fund. The
Bonus Depreciation for Real Estate in 2026: What Changed and What It Means for Your Fund Read More »
Carried interest is how real estate fund managers build wealth. It’s the promote, the performance allocation, the share of profits you earn above and beyond your capital contribution. For most GPs, it’s the single most valuable component of their compensation. And most GPs don’t fully understand how it’s taxed. That’s not a criticism. The rules
How Carried Interest Is Taxed in Real Estate Funds Read More »
When you’re setting up a real estate fund, one of the first structural decisions you’ll face is whether to use an LLC or a limited partnership (LP). Your attorney will have an opinion. Your CPA should, too. Both structures work. Both are pass-through entities for tax purposes. Both can accommodate a waterfall distribution with preferred
LLC vs. LP for Your Real Estate Fund: What to Consider Read More »
If you’re a GP who’s done a few syndications and you’re thinking about launching a fund, the question isn’t just “which is better?” The question is: which one fits where you are right now, and which one fits where you want to be? We work with GPs who run syndications, GPs who run funds, and
Real Estate Fund vs. Syndication: Key Differences for GPs Read More »
If you’re transitioning from syndications to a fund, or launching your first pooled investment vehicle, there’s no shortage of advice about the legal side. Get a securities attorney. File a Reg D. Draft your PPM. All of that matters. But what most first-time fund managers overlook is the financial infrastructure. And that’s where things break
Starting a Real Estate Fund? Here’s What to Get Right on the Financial Side Read More »
Most fund managers think about tax strategy at two moments. When they’re launching the fund and when the K-1s come out. That’s a mistake. Tax planning for a real estate fund isn’t a once-a-year exercise. It’s an ongoing discipline that affects how much of your carried interest you actually keep, when your LPs pay taxes,
Tax Planning Strategies Every Real Estate Fund Manager Should Know Read More »
If you manage a real estate fund, K-1 season is probably one of the most stressful times of the year. Your investors are waiting. Their CPAs are emailing you. And every day your K-1s are late, you lose a little bit of credibility. We work with fund managers who range from launching their first fund
K-1 Preparation for Real Estate Funds: What GPs Need to Know Read More »
California Residents Owning Out-of-State Real Estate Through an LLC. Do we pay taxes in California? We get asked this question all the time. They form LLCs in other states.They invest where numbers make sense.They manage everything from California. Then confusion starts. Do I owe California tax if the property sits out of state? Does my
California Residents Owning Out-of-State Real Estate Through an LLC: What You Must Know Read More »