STRATEGY

"Creating generational wealth by leveraging commercial real estate  investor pool of capital into positive cash flowing CRE Investments, CRE Funds, & Value-Added B & C Class MultiFamily CRE(s) in non-speculative, growing US markets while preserving wealth through a variety of potential tax efficient strategies utilizing Cost Segregation, Bonus Depreciation, Step-Up-In-Basis, Deferred Sales Trust, Opportunity Zones, Delaware Statutory Trust, Conservation Trust, 401K, Roth IRA, Self-Directed IRA, 1031 Exchange, 721 Exchange, 453 Exchange, and eQRPs...."  

- Midas Holdings, Inc. 

+ Preserving Wealth through Tax Efficient Strategies

Target Markets

Risk vs. Reward Commercial Real Estate Investment Models

Risk vs. Reward Commercial Real Estate Investment Models

Value Add Strategy

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Commercial Real Estate Investment Value-Add Model

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Value-Add Strategy 

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Characteristics of different Commercial Real Estate investment Risk Models

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Types of Commercial Real Estate Investment Risk Models

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Commercial Real Estate Investment Risk Models

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

High Lighted Value-Add Real Estate Investment Risk Strategy

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Commercial Real Estate Asset Classes

CRE Investor Style Intentions & Strategies

Non-Speculative and Consistent Value Add Strategy

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Commercial Real Estate Investment Strategies

(The illustration above is not a solicitation, offering, or promise of any returns. Results vary based on a variety of market conditions.)

Commercial Real Estate Investment (CRE) Strategies

Risk vs Reward in different Real Estate Investment Strategies

Reasons to Invest in 

CRE Investments, CRE Funds & MultiFamily CRE

- Leverage & Demand -

Leverage

Access to 50 - 250 unit Apartment Complexes

Archimedes once said, " Give me a lever long enough and a fulcrum on which to place it on, and I shall move the world..." 

Commercial Real Estate Syndication (CRES) is simply the pooling of funds from numerous accredited & sophisticated investors and channeling those funds into real estate projects while leveraging equity, debt, economies of scale cash flows, investor capital, and value-add opportunities to increase cash flow & value, growth markets, and the expertise & experience of the professional real estate syndication team. 

The ability to pool investments into a LLC real syndication allows you to scale your investment power to participate in projects that you wouldn’t be able to access on your own. 

Real Estate Syndication allows investors to participate in otherwise unobtainable real estate investment opportunities by aggregating capital and experience by teaming up with other like-minded investors.(Picture is an illustration of 'LEVERAGE'  & not a representation nor solicitation of any guarantee of return on investment.)

Demand for Rental Housing

Recession Resistant

Whether the economy is flourish or floundering, rental housing has consistently for several decades demonstrated a demand. 

The National Apartment Association projects the country will need to add 4.6 million apartment units by 2030 just to keep up with the growing housing need.

Passive vs. Active Investing

Relief from the Headaches of 

Finding, Buying, Managing, and Selling Investment Properties 

By investing in commercial real estate, investors get access to the recession-resistant returns of commercial real estate, without the hassles of day-to-day management and resolving tenant issues.  As a passive investor, you are relieved from the extensive Due Diligence process of vetting a multifamily apartment investments. We carefully assesses operators, markets, and properties. 

Access to inside track to preferred real estate investments and off-market properties.  Real estate brokers tend to only work with qualified buyers who they know can close. The general public and most newer investors never see these off-market opportunities.

Cash Flow

Monthly/Quarterly ROI

Immediate passive positive cash flow from rental income is typically distributed to investors monthly/quarterly and in lump sum payouts at disposition and/or refinancing .  Commercial real estate investments have the potential to provide a win-win for investors. They offer income in the present as well as the potential for a return based on the asset’s future appreciation. 

Appreciation of Hard Asset

Increase Value & NOI

Unlike single family homes, a multifamily apartment syndication is a business valued primarily by its Net Operating Income (NOI), not property comparable sales. Through physical and operational improvements, we can increase the value of the property by increasing NOI. CRE investments have the potential to provide a win-win for investors. They offer income in the present as well as the potential for a return based on the asset’s future appreciation. Real estate is a hard asset, which means it’s a physical thing that has intrinsic value both in the building and the land.

Amortization

Build Equity

Revenue from regular operations & rental income pays down the debt on the property, which in turn builds equity for investors. 

Depreciation

Tax Savings Benefits 

The tax efficiency of real estate is an allowable tax haven to deduct expenses from your capital gains.  Real estate depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property placed into service by the investor. Depreciation is essentially a non-cash deduction that reduces the investor's taxable income. Investors preserve their wealth with tax saving strategies through depreciation, bonus depreciation, and cost segregation accounting methods. The Tax Cuts and Jobs Act of 2017 doubled the bonus depreciation deduction from 50% to 100%. We leverage various federally approved tax saving tools such as Deferred Sales Trusts, eQRP(s), Self-Directed IRA(s), 401K/Roths, Conservation Trusts, 1031 Exchanges , and Opportunity Zones to either minimize or virtually eliminate taxes on initial equity/capital gains. Deferred Sales Trust overcome the problems associated with the 1031, including the 180-day deadline, the pressure to buy a new property, and the challenge of getting all the investors in a syndication to agree.

 The Tax Cuts and Jobs Act (TCJA) that went into effect on Jan. 1, 2018, provides an opportunity for taxpayers to accelerate generous depreciation deductions for “qualified property” acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2027.  Investors become direct fractional owners in the individual properties, and they receive a K-1 each year.  Income from the investments can be offset by depreciation and even carry forward paper losses to future years.


Many investors are also incentivized by the tax benefits of direct commercial real estate investments. If properly structured, you may be in a position to claim deductions related to depreciation, interest expense, and other items help to defer the taxes on cash distributions.

For instance, the IRS allows commercial real estate investors to deduct some of a property’s depreciated value to account for the cost of maintenance and upkeep. The overall result is that commercial real estate related tax advantages may help investors to defer some taxes in a way that is not available with most other investments.

The tax benefits received an added boost from the new law tax laws that went into effect in 2018. The law now allows for a 20% deduction of income received through pass-through entities such as LLCs.

Hedge Against Inflation

Recession Resistant

Inflation allows real estate investor to rent out or sell their investment at higher prices. It can be considered a protection of the real estate portfolio against recessions & inflation with rent increases and appreciation.  As the prices of goods and services increase in the broader economy, real estate often benefits.

That’s because increasing wages and profits also generally increase the amount that property owners can charge for space, as well as what tenants can afford to pay.  Rent escalation clauses in many leases provides another inflation hedge, in addition to organic rent growth.

Diversification 

Protection Against Volatility of Stock Market

Diversifies your portfolio investment away from the stock market and it's volatility and the hidden fees associated with the management of your stock portfolio.  The fact that direct real estate investments aren’t publicly traded means they are less impacted by short-term news and events, and that helps smooth valuations.

Job growth usually correlates to a need for office space; meanwhile, an increase in household formations may lead to a need for more apartment complexes.

Additionally, there is a considerable body of research suggesting that illiquid assets, when compared to more liquid stocks, bonds and even REITs, can provide higher returns as they’re not subject to the so-called liquidity discount.

Mutual Alignment of Interests

General partners/Sponsors in real estate syndication equity model earn the majority of their compensation after investors are paid. Typically general partners (GPs/Sponsors) invest alongside with their investors, so GP(s)/Sponsors share in the downside risk as well as the upside.  Investor's safety and profit are the GP(s)/Sponsors incentives too. 

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