Tim Wallen, Principal and CEO, sits down with Sam Wilson, Host of How to Scale Commercial Real Estate Podcast. Tim discusses various aspects of real estate investing including MLG’s investment strategy and unique profit-sharing structure.
Visit the Podcast here. Navigate in the podcast player to “MLG Capital’s Unique Profit Sharing Structure”.
Private real estate is a tax-advantaged asset class. At MLG, we first focus on making smart real estate investment decisions, then wrap strategic tax planning around those decisions. One financial strategy our investors can take advantage of is the power of reinvesting over time. When one of our older funds produces a large distribution following the sale of a property, many of our investors consider making new investments into our newest fund. New investments generally create fresh tax losses that could be used to offset taxable income from prior funds within the same year. Illustrating the Tax Efficiency of Reinvestment To illustrate the power of reinvestment, let’s see what potential tax savings could occur from an investor using their proceeds from a distribution in an older fund to make a new investment into our latest fund offering. This scenario is hypothetical, and it is always wise to consult your tax professional before making any investment decision. Let’s assume an investor made a $250k investment in one of our prior funds. Let’s also assume that a property sale produced a return of capital of 20% of their original investment amount, or about $50K. Lastly, let’s assume this investor has a high...
MLG Capital has announced the hiring of six new vice presidents on the private wealth and family office teams, expanding its footprint and deepening its relationships with accredited individuals, registered investment advisers (RIAs) and family offices across the United States. Read more at Smart Asset Adviser.
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