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Anyone invest in senior care living real estate syndicates?

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  • Anyone invest in senior care living real estate syndicates?

    I have reviewed the article by WCI.  Very informative.  In the process of my third multifamily deal.  However, noticed that assisted living facilities are in huge demand and provide a much needed service to the public.  Also cash flow seems to be very good.  Has anyone ever invested in a Senior living Syndicate?  Any recommendations?  I'm not crazy about REIT's don't like the tax structure of these, and I am willing to trade off liquidity.  Also REITs tend to get hammered in price when interest rates rise.   I would like the depreciation on the assets and therefore a K1 not a 1099 div.  Rather pay capital gains than marginal tax rate on the income.

  • #2
    I have not gone that avenue, but the logic is there for the demand.

    Congrats, are you managing three multi family deals as the syndicator or buy them yourself ? Or, did you invest in a syndicate on those deals and how are they going?

    Bottom line on REIT's is that they are stocks, they are not direct ownership in CRE. Nothing wrong with them, but it's not the same thing, as their correlation to the broad market is quite high.



    • #3
      Yes, I have invested with Mainstreet Property Group.  They are killing it in the arena of senior living.  There is a bit of a fight in IN now.  Mainstreet is suing to lift a moratorium on the building of new facilities.  Even if they lose that battle they have properties in other states and should still do well.  They pay on K-1 if you are an equity investor.  It is a private company and is available only to accredited investors.



      • #4
        Sorry NJ doc, I'm not the syndicator, I'm just handing over funds to projects.  Have a lot of rentals and my wife told me to stop b/c the back end paperwork with each was killing her.  I'm just buying shares in these multifamily deals.

        Wealthy doc thanks so much for Mainstreet property group referral will check them out.  Do they file consolidated returns for states with state income tax, or do you file?  Spoke with my accountant to get a quote on fees for filing and would have to do some substantial investments to not have that drag down my returns over the life of the deal.  Therefore focusing on states with no state income tax.


        • #5
          Wealthy doc is this the Mainstreet Property Group out of Washington?


          • #6
            I believe they are based out of Carmel, IN.

            They invest in multiple states.  I'm not a tax expert but I believe I file and pay taxes in the other states but that amount is reduced from my own state tax bill due to reciprocal agreements between the states.