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    I will be selling my home soon and netting over 300K from the sale. I have already saved for a downpayment on my next home and emergency funds so this would be extra. I would like to keep this money in similar asset class. I already do REITs but was wondering it maybe a good time to look at private real estate. I don't seem to understand how some of these funds can be tax efficient if the returns are taxed as ordinary dividends. Any good resources on how to learn more about them or types of different investments? T

  • #2
    Go to the Passive Income MD website. He teaches about real estate syndications, how to vet them, how to choose good sponsors, and how to analyze the returns.

    Personally, I don’t favor REITs as the tax advantages are not there in comparison with direct real estate investing. They are fine for a bit of asset diversification, but it is more like a bit of extra diversification in a stock portfolio. I also don’t like real estate syndications as the sponsor makes out great, the limited partners, less so.

    I do like investing directly in real estate, but it is much more complex and much more time intensive than investing in the publicly traded markets. Why do I do it? The tax advantages are extremely beneficial. I will save a generous six figure amount in income taxes this year due to direct real estate investments.