September / October 2019
Finding the Optimal Balance Between Debt and Equity Financing 
Virtually all real estate investors use leverage, or borrowed money, in their business. It allows them to reach for higher priced property than they’d be able to afford by using just equity. But can real estate investors have too much of a good thing? What happens if investors can’t cover the principal and interest payments? This article looks at what investors should consider when searching for the right amount of leverage.

Will You Be Ready?
Now’s The Time to Prepare for the Next Recession
Markets tend to be cyclical. It’s likely that the U.S. economy will see another recession at some point in the coming years, and real estate will probably take a hit. Investors who take steps now can help insulate themselves from major losses in the event of an economic slowdown or recession. This article looks at what real estate investors can do now and how they might even end up positioned to seize the opportunities that downturns can produce. 

When it Rains, it Pours
Consider an IRR Waterfall for Your Next Development Project 
The internal rate of return (IRR) waterfall arrangement has gained popularity in recent years as a way to shift risk from equity investors, while rewarding developers for strong results. But no one should enter into such an arrangement without a firm grasp of how it works. This article looks at how these arrangements can benefit real estate professionals.

Developer’s Yacht Deductions Run Aground
Many businesses have stretched the definition of “marketing” to claim some questionable federal income tax deductions. This article reviews a recent case involving a real estate developer that illustrates how the IRS — and the U.S. Tax Court — generally see through these tactics.
Becnel v. Commissioner, T.C. Memo. 2018-120, Aug. 2, 2018

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