What Is Private Credit?
As a subset of alternative credit, private credit can also be referred to as private lending, direct lending, or non-bank lending. It can be described as an asset class where the debt is not issued or traded on the public markets. They can be comprised of potentially higher-yielding, illiquid investment opportunities ranging from senior secured debt with income-like characteristics to distressed debt with equity-like risk and returns.
What Is a Recourse Loan and How Does it Work?
Lending money involves significant amounts of risk on behalf of the lender. To help minimize risk, lenders typically set strict requirements to get the best interest rates on loans. However, lenders may go even further to reduce risk by offering recourse loans.
How to Set Up a Living Trust
A living trust is a tool that helps ensure that your heirs receive the assets that you want them to have. While they work similarly to a will, the big difference between a will and a living trust is found in the fact a will won’t go into effect until you have passed away, while a living trust (preferably a living revocable trust) goes into effect immediately. During your life, you are still in charge of your trust and the assets contained in it, and once you have passed away, the trustee whom you have designated becomes responsible for handling the assets in the trust according to your wishes.
How Much Do You Have to Reinvest in a 1031 Exchange?
Real estate investors not only focus on picking the right properties, but savvy investors may also understand how to use the current Tax Code to their benefit. Policymakers have put certain provisions in the existing Federal Tax Code that incentivize investors into not only making an initial investment, but also benefits associated with maintaining their position as an investor. One such example of an incentive is the 1031 exchange. Understanding how these exchanges work, what they are, and the laws that surround them can ensure that you’re in a position to potentially enjoy sustained success as a real estate investor.
Can You Combine Opportunity Zones and New Market Tax Credits?
Opportunity Zones and New Market Tax Credits both provide tax benefits to taxpayers who invest directly into low-income neighborhoods that historically have been overlooked when it comes to new investment capital.
How To Calculate Front-End Ratio For Investment Properties
When deciding whether or not a potential client is a reasonable loan risk for a mortgage, lenders look at several factors. One of the factors is known as front-end ratio. In this blog, we’ll explain what front-end ratio is and show how to calculate it.
How Do You Calculate Tax Liability?
The U.S. tax code can be a challenge when calculating your tax liability. It is time-consuming and tedious. For example, if you fall into the 22% tax bracket, that doesn’t mean that your entire income will be taxed at 22%. This is because the tax system is progressive.
Do I Need an Attorney for a 1031 Exchange?
Utilizing a 1031 exchange is a way to retain some portion of the money you have earned on an investment property. A 1031 exchange allows you to carry over capital gains from the sale of your investment property and reinvest it into a like-kind real estate opportunity, allowing you to keep more of your funds working to grow your portfolio.
What Is Estate Tax?
According to the Internal Revenue Service, the Estate Tax is “a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.” The property includes cash, securities, real estate, trusts, business interests, and “other assets.”
The History of Delaware Statutory Trusts
Delaware statutory trusts (DSTs) are independent legal entities created through the Delaware Statutory Trust Act. These trusts hold title to one or more income-producing properties that can include multi-family, retail, office, industrial, and similar commercial real estate assets.
