DeepSummary
In this episode, Tim Wallen and Rick Reuter from MLG Capital discuss Tim's journey into real estate with MLG, the current investment environment, and the challenges investors face when transferring real estate wealth to the next generation. They explain how MLG's Legacy Fund can help minimize income and estate taxes and provide practical solutions for tax-deferred investments.
Tim shares his background as a CPA who landed in the real estate business and later became CEO of MLG Capital. He highlights the benefits of investing in real estate, including creating long-term revenue streams and building wealth for families. Tim and Rick discuss the advantages of investing now, with high cap rates and low competition on the buy side.
The conversation then turns to the MLG Legacy Fund, a specialized fund focused on wealth transfer strategies. Tim explains how the fund addresses challenges like asset management, income taxes, and estate taxes for families looking to transfer real estate wealth to the next generation. Rick also outlines the tax benefits of the Legacy Fund, including tax deferral upon contribution, year-over-year ordinary income tax minimization, and step-up in basis at death.
Key Episodes Takeaways
- The current investment environment presents opportunities with high cap rates and low competition.
- Transferring real estate wealth to the next generation can be challenging, but proper planning can help minimize taxes and other issues.
- MLG's Legacy Fund is designed to help families transfer real estate wealth while minimizing income and estate taxes.
- The Legacy Fund offers tax deferral upon contribution, ordinary income tax minimization, and step-up in basis at death.
- Proper planning is crucial for avoiding unnecessary taxes and ensuring wealth is transferred to desired beneficiaries.
- Investors should consider their long-term goals and seek professional advice when exploring wealth transfer strategies.
- Diversification, asset management, and tax planning are key benefits of the Legacy Fund.
- Real estate investing can create long-term value and revenue streams for families.
Top Episodes Quotes
- “We have a philosophy at MLG of investing through all cycles, and today we're seeing some of the best cap rates we've seen in multiple decades. We have the least amount of competition on the buy side that we've had in 20 years on the buy side.“ by Tim Wallen
- “The first two years of the fund produced nice, ordinary loss allocations to investors of 8% and 7%, respectively, as a percentage of contributed capital. And these are low basis assets, again, feeding in that qualify for full deferral. So that's why the losses aren't amounting as high as the closed end funds, but still very beneficial, getting cash and getting loss allocations.“ by Rick Reuter
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Episode Information
Tax Smart Real Estate Investors Podcast
Hall CPA
2/13/24