SDIRAs: Rules You Need to Know for Multifamily Real Estate Investing

A blank clipboard with the word RULES spelled out in letter tiles at the top, and an orange pencil positioned on the lower right corner, set against a beige background.

Self-directed IRAs (SDIRAs) open the door to alternative investments like multifamily real estate, giving high-net-worth (HNW) investors more control, diversification, and long-term growth potential than traditional retirement accounts. But with greater flexibility comes greater responsibility. The IRS imposes strict rules that, if violated, can trigger serious consequences, up to and including disqualification of the entire […]

The Difference Between the Promote and Equity Split

A pie chart with colorful segments, with one segment replaced by a fanned-out stack of U.S. dollar bills, illustrating the concept of financial distribution or budget allocation.

In the real estate finance context, a promote and an equity split represent distinct concepts related to compensation and ownership, particularly in transactions involving multiple parties. A promote is a share of profits that a sponsor or general partner earns after all investors have received a pre-determined preferred return and their initial investment. An equity […]