I’m considering selling a rental property. What are some things I should consider when thinking about whether I should do a 1031 or reinvest the profits into NDF’s depreciation shares? What can I likely expect to receive in depreciation for the fund?

National Diversified Fund 7 is Live!

We have a few webinars that cover this topic. You’ll want to talk to your CPA, then set up a 1:1 meeting with one of us to help brainstorm the best path. Usually – not always – we find we can craft a solution that works well for an individual situation.

NDF offers a share class with a lower preferred return (5% vs 8%) but gets all depreciation.
A $100K investment might generate $50K or more of passive losses in the first year.
This may not be enough to offset all your capital gain from your sold property, but we can usually defer a very large percentage of your taxes.
In essence, it’s the same end result of a 1031 exchange with a lot less work (since you are not a passive vs. active investor).

Important Disclosures

INVESTMENT IN THE FUND INVOLVES HIGH RISK

Investments in the Fund will be offered exclusively to financially sophisticated, accredited investors, high net worth individuals, family offices and institutional investors capable of evaluating the merits and risks of an investment in the Fund. Interests in the Fund are highly speculative and illiquid investments that involve substantial risk. No active secondary market in the interests exists, and the Fund does not anticipate that any such market will develop. Interests in the Fund are suitable investments (if at all) only for a limited portion of the risk segment of an investor’s portfolio. Investors could lose all or substantially all of their investment in the Fund.

NO OFFERING OF INVESTMENT OPPORTUNITY

The information contained in this presentation has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities or to participate in any investment strategy and may not be used or relied upon in connection with any offer or sale of securities. Any description of the Fund’s portfolio is for illustrative purposes only. The Fund’s actual portfolio may vary from the parameters described herein. The Fund will only sell securities pursuant to the terms and conditions set forth in its governing documents, including, without limitation, its private placement memorandum (“PPM”), its subscription agreement and its operating agreement.

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The information contained in this presentation was obtained from the Fund and other sources identified by the Fund. Any statements, data, estimates, or projections contained herein have been prepared by management of the Fund and may involve elements of subjective judgment and analysis that may or may not prove to be accurate. All information provided herein is on an “as is” basis. While the information contained herein is believed to be reliable, neither the Fund nor any of its respective representatives, by delivery hereof, makes any representations or warranties, expressed or implied, as to the accuracy or completeness of such information. This presentation does not intend to contain all the information that may be required to evaluate an investment in the Fund or any other transaction, and any recipient hereof should conduct its own analysis of the Fund and the information contained or referred to herein. The information contained herein is not intended to be, nor should it be construed or used as investment, tax or legal advice. Before making any investment in the Fund, you should consult with your professional advisor(s) to determine whether an investment in the Fund is suitable for you considering your investment objectives and financial situation.