Now that you know a lot more about passive, diversified real estate investment and how it could fit in your overall financial plan, let’s review how to get started.
Pre-Planning Activities
As they say in woodworking: measure twice, cut once. It is important to plan before you act.
Activities within the family.
ü Decide if real estate investment is right for your portfolio.
o See Chapter 1 of this book.
ü Decide if you want to invest passively or actively.
o See Appendix 3 of this book.
Activities with your advisors.
Talk to your advisory team – most importantly your CPA, but also your attorney and financial advisor if you have them.
ü CPA:
o Tax considerations.
o For example, if you have the option to get more passive losses through depreciation, how much would you want?
ü CPA or financial advisor.
o For example, which investments should be purchased with cash, versus through your self-directed IRA?
o Does it matter if you personally own the investment, or is there a tax benefit to another method?
ü Attorney:
o How to hold title (for example, in concert with the rest of your estate plan).
o Detailed review of specific fund documents when you are about to invest.
Activities with potential Fund General Partners and/or Sponsors.
ü See how their fund(s) fit your requirements.
If you are ready for passive, diversified investing…without the headaches, book your 15min investment review at https://irontoncapital.com/myreview to see if we can help you go passive.
