July 24, 2023
Examining a Fund That Gives Individual Property Investors an Exit Strategy
Billy Fox, Senior Vice President, was recently interviewed by WealthManagement.com regarding The Legacy Fund. The Fund enables owners to contribute commercial real estate they directly own in exchange for ownership units. Read more at the Wealth Management website.
May 12, 2023
MLG tops $1 billion worth of properties in Legacy Fund
MLG Capital in Brookfield surpassed $1 billion in apartment and industrial properties through a fund tailored for real estate investors seeking ways to pass a lifetime of work to their next generation.
May 11, 2023
MLG Capital’s First-of-it’s-kind Real Estate Divesting Fund Surpasses $1B in Assets
Innovative Legacy Fund reaches impressive milestone nearly two years after first-to-market launch Partners and clients praise Fund for offering a tax-deferred exit strategy for real estate owners that eliminates the burden of managing property, provides membership and estate planning flexibility, and diversifies clients’ portfolios Brookfield, Wis. (May 11, 2023) – MLG Capital, an investment firm with decades of experience in real estate investment, asset management and tax-deferred exit strategies, today announced that its unique Legacy Fund has surpassed $1 billion in assets, marking a significant milestone for this first-of-its-kind solution. The Legacy Fund provides owners of commercial real estate a tax-deferred exit option to contribute their property in exchange for units of a professionally managed, diversified real estate fund. Prior to the inception of this unique Fund solution, owners of real estate assets were limited to holding and managing their portfolio or less desirable tax-deferred exit strategies – like 1031 exchanges, Delaware Statutory Trusts, or UPREIT transactions – that often include shortfalls including high fees, limited future tax-sheltering benefits, public market volatility and more. After years of planning, MLG Capital created the MLG Legacy Fund to provide a solution to this challenge. The Fund’s first acquisition was in February of...
February 15, 2023
Valuation Reporting: What Should I Know as an Investor in Private Real Estate?
You’ve made the decision to make an investment in a private real estate offering, congrats! Now, you’re in receipt of quarterly distributions to your bank account along with all the various reporting that measures your investments’ performance. In this article, we’ll highlight some of the most commonly used valuations metrics to help you understand both what they mean and how you can use them to assess your investments’ performance. NAV (Net Asset Value): In real estate investing, NAV is calculated as the estimated value of all assets in a fund (less liabilities) divided by the number of shares or units. It is used to determine the market value of the fund. The fund’s investments in real estate are classified as Level 3 investments, meaning valuations are derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques. It is not based on market, exchange, dealer, or broker-traded transactions. Because of this, the NAV of an illiquid investment, like private real estate, is only an estimate of the current market value and may be subject to change. Valuation: NAV is used to determine the value of a private real estate fund, which is important for both the...
February 14, 2022
First-of-its-Kind Fund Answers Need For Owners of Appreciated Real Estate Assets
Brookfield, WI (February 14, 2022) When owners of appreciated real estate assets are ready to divest their portfolio, they often find themselves in a bind, not wanting to completely separate from their properties and facing significant potential capital gains taxes if they sell them. The few tax-deferred exit strategies that have been available to these investors, like 1031 exchanges, Delaware Statutory Trusts or UPREIT transactions, all carry shortfalls including: potentially high fees, the requirement of ongoing active management, public market volatility and more. Until now. MLG Capital, an investment firm with decades of experience in real estate investment, asset management and tax-deferred exit strategies, recently created a first-of-its-kind, tax-efficient solution for owners of appreciated real estate assets who are ready to divest. It’s called the MLG Legacy Fund, and it allows accredited investors to contribute real property in exchange for units in a diversified fund. After making an asset contribution, investors receive a membership interest in the Legacy Fund and annual returns through the Fund’s diverse investments in multifamily, industrial, office and retail assets. Key benefits of the Legacy Fund include: Transitioning from active to passive real estate ownership and escaping the burdens of being a landlord Risk reduction through diversification...
August 5, 2021
Why the Legacy Fund is the Superior Real Estate Exit Strategy
Over the course of the last few decades, many investors have experienced significant success in the world of real estate ownership. The cash flow, appreciation, and tax benefits provided can be powerful; however, owners of appreciated real estate often find themselves in a bind as they consider divesting their portfolio. After years of long-term ownership, investors are ready to sell and move out of the active oversight of their property, but often have very little basis remaining and as a result can face material capital gain taxes. Though there are ways to potentially defer the realization of these gains, conversations of changes to the tax code leave many in this situation wondering: “what options do I have?” What tax-deferred strategies exist? Possible tax deferred exit strategies include selling the property in a 1031 exchange of “like-kind” property, investing in a Delaware statutory trust (DST) with the proceeds from sale, or contributing the property into an UPREIT. Although each of these exit strategies may potentially achieve tax deferral, they also come with some common shortfalls. Common shortfalls of other tax deferred exit strategies: 1031 Exchange – Timing constraints, trade risk, single asset risk and require active management or oversight DSTs –...
June 22, 2021
Why Contributing Property to the Legacy Fund Could be More Than a Smart Financial Decision
When planning an investment, it’s important to understand the impact it will have for you financially and the time and effort required to oversee that investment. What if one could alleviate the entire burden of ownership without losing the financial component? What value would you place on having more time with the people you love or doing what you love? When selling property and seeking to defer tax, investors often consider 1031 exchanges, Delaware Statutory Trusts or UPREIT transactions. While those offerings enable owners to defer tax, they may have some shortfalls, including time constraints, high fees, single asset risk, and/or public market volatility. While partnering with MLG Capital to navigate the waters of a 1031 exchange could be a better alternative than conventional tax-deferred solutions, an even better idea may be to partner with MLG Capital and contribute your property to the Legacy Fund. Unlike our series of closed-end funds, like Private Fund V, the Legacy Fund is perpetual and designed to allow accredited investors to contribute real property into the fund. It’s an exceptional exit strategy for high-net-worth investors with appreciated real estate assets. There are three main benefits to contributing to the Legacy Fund. Passive Ownership Diversification Tax Efficiency One of the...
