Tax Preparation

Direct Real Estate & Private Equity

What are Direct Real Estate & Private Equity? 

Direct Real Estate and Private Equity are both forms of investments in privately-held, pass-through entities. Direct Real Estate occurs when an individual acquires ownership in an entity that directly owns a real estate asset. Private Equity is a more broad classification of private investment, as it simply involves capital not listed on the public market and typically invests in private companies.

What are the advantages of Direct Real Estate & Private Equity? 

These investments are typically structured in the form of limited partnerships, which protects owners from liability of the operations (up to their extent of ownership). These investments are also typically market-dependent, which makes performance expectations a bit more predictable and less correlated to the broader stock market. Furthermore, because these investments are in operations that typically last for 2 or more years, a steady income stream can be achieved with a hands-off approach from the investors. Finally, most expenses, credits, and losses that these entities experience will flow through to the investors in the form of tax write-offs that can be used at the investor’s individual income tax return.

Who qualifies & why should you adopt?

Individuals with a high appetite for risk and who are interested in building a supplemental income stream can consider exploring Direct Real Estate or Private Equity.

This is not an offer to buy or sell any securities or perform a specific strategy. Please consult your financial advisor before exploring these opportunities. 

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