What term carried interest or promote refer to multifamily property investing? Is it interest rate?

Good question.

No, it is not an interest rate.

Also called a “promote,” carried interest has been a fundamental part of real estate investment partnerships for decades. Managing partners receive a carried interest, or a share of profits once an asset is sold, in recognition of both the value they bring to the venture and the risks they take. In addition to their management expertise, managing partners often make initial capital contributions to the venture and assume responsibility for recourse debt, litigation risks and cost overruns, among other risks.

Carried interest should receive capital gains tax treatment because it represents a return on an underlying, long-term capital asset, as well as risk and entrepreneurial activity. This is in contrast to any fees that managing partners receive in payment for operations and management activities, which are taxed as ordinary income.

Some political forces would like to unfairly tax carried interest at ordinary income rates regardless of how long an asset is held. Such a change would adversely affect not only the apartment industry, but also the entire real estate industry, given that 50.8 percent of all partnerships are real-estate related.

The new investors that do the best in multifamily don't look for apartment communities to invest in on Loopnet. Instead, they look to find experienced apartment investors that will let them invest into their deals. Being a limited partner you will avoid all the problems a general partner faces. If you go this route, you will have a lot less work.

If you are the type of person that wants to do things the easier and more efficient way, I created a group that can help you learn how to invest.

My group, the Benjamin Z Miller Investor Networking Group, meets every Sunday on Zoom. I created the group for new and experienced investors to network and make more contacts.

If you would like to learn more about multifamily investing, you should join the Benjamin Z Miller Investor Networking Group.
Once you attend one of the Sunday meetings you will receive a Google Sheets document with the phone and email of the other investors that attended.

From there you can reach out to numerous multifamily investors. I also am good friends with some of the best well known multifamily investors so if you need an introduction to a particular investor in some cases I can help you.

Before you do any investing you should invest more time and money in your financial and legal education. I offer education and training to new investors, landlords, engineers, doctors and dentists, and many others that would like to learn how to enjoy the benefits of multifamily as quickly as possible.


If that sounds interesting contact my office by going to www.benjaminzmiller.com and fill out the contact form.
You also can register at meetup.com at the link below:

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!


Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
[email protected]
https://www.linkedin.com/in/benmillersells/
https://twitter.com/BenjaminZMiller


Did you miss our previous article...
https://trendinginrealestate.com/multifamily-investing/buying-our-first-property-what-were-we-thinking