Origin vs MLG. Also a question about MLG Fund structure.

[Molar Mechanic]

Question about the 1099 dividend fund, I've never invested in one.
Do you lose out on the depreciation benefits you would otherwise get on a fund structured with K1 reporting?
My opinion would be that you are losing the full benefit of the investment if you are not getting the depreciation.
With the 1099, do you get any depreciation?


Another question, since the Origin fund is evergreen, do they have gated redemptions like BREIT (Blackstone)? BREIT, had a redemption issue because too many people wanted their investments redeemed. They have it capped it at 5% per quarter.

Typically the depreciation is taken at the fund level, so your 1099 may show a loss or no gain even though you did get cash (depending on the deal). What you lose is the opportunity to count passive losses from Fund A against passive gains from Fund B, or some other opportunities that probably don't apply.

Redemptions are in the docs, and usually in the fund summary. BREIT was setup to be an evergreen fund with quarterly redemption options. MLG VI is a lifecycle fund. If you put your money in, don't expect anything other than cashflow until THEY decide to give it to you, either through refinancing or sales. I can't speak to Origin. I had a conversation with them a few years back and get their marketing emails still, but they didn't match my needs at the time.

[HM7]

Typically the depreciation is taken at the fund level, so your 1099 may show a loss or no gain even though you did get cash (depending on the deal). What you lose is the opportunity to count passive losses from Fund A against passive gains from Fund B, or some other opportunities that probably don't apply.

Redemptions are in the docs, and usually in the fund summary. BREIT was setup to be an evergreen fund with quarterly redemption options. MLG VI is a lifecycle fund. If you put your money in, don't expect anything other than cashflow until THEY decide to give it to you, either through refinancing or sales. I can't speak to Origin. I had a conversation with them a few years back and get their marketing emails still, but they didn't match my needs at the time.

Thanks.
Follow-up questions. I know I'm getting into the weeds, no obligation to answer if you're not sure.

With the typical syndications, for a 50 K investment, you might be getting 40-45k in depreciation. The majority of it would be in the first year and you can carry it over to future years.

Do you get this high level of losses with the DIV fund? can you carry it over to future years?

[The White Coat Investor]

Thanks.
Follow-up questions. I know I'm getting into the weeds, no obligation to answer if you're not sure.

With the typical syndications, for a 50 K investment, you might be getting 40-45k in depreciation. The majority of it would be in the first year and you can carry it over to future years.

Do you get this high level of losses with the DIV fund? can you carry it over to future years?

Expect Bonus Depreciation to be decreasing in coming years.

No, depreciation doesn't pass through with the DIV fund, at least not directly. It probably does indirectly via "return of capital" distributions like a REIT though. Never owned that version of it, but after seeing all the K-1s from MLG, I can understand why one might, even in a taxable account.