Quality Real Estate:
A Stable Passive Income Generator
By investing in a real estate fund or property that generates income, investors can pair their passive losses with passive income on a dollar-for-dollar basis to generate tax-advantaged income.
Here are two approaches:
Real Estate Funds
The first option involves a real estate fund structured as a limited partnership or LLC. Unlike REITs that generate dividends (portfolio income), these real estate funds generate distributions that qualify as passive income.
Direct Property Purchases
The second option involves the direct purchase of rental real estate. Rental income from direct property ownership is passive. In this area, investors have two options; they can either purchase entire properties as the sole owner or, with as little as $150,000, they can purchase partial interests in properties through one or more tenant-in-common (TIC) or Delaware Statutory Trust (DST) offerings. Either way, the rental income generated can become tax-advantaged when off-set by the clients' passive losses.