TR_December_2021

CENSUS REGIONSAND DIVISIONS OFTHE UNITED STATES

WEST

MIDWEST

NORTHEAST

WA

M E

NEW ENGLAND

ND

MT

VT

MN

NH

MA

OR

WEST NORTH CENTRAL

WI

NY

SD

PACIFIC

MI

ID

CT

MIDDLE ATLANTIC

RI

EAST NORTH CENTRAL

WY

IA

PA

OH

NJ

NE

MOUNTAIN

IN

NV

IL

DE

UT

MO

CO

CA

KS

MD

WV VA

KY

NC

AZ

SOUTH ATLANTIC

NM

TN

EAST SOUTH CENTRAL

SC

OK

AR

GA

AL

MS

PACIFIC

PACIFIC

WEST SOUTH CENTRAL

LA

TX

AK

FL

REGIONS

HI

SOUTH

DIVISIONS STATES

ings from 2009–2019, raising $13.576 billion for small businesses across 242,070 investments and with only 221 related civil complaints (a complaint rate of .001%). Between 93-97 percent of Reg D offerings included accredited investors, who according to Congress and the SEC, DO have the wherewithal to properly vet the risks of such investments. The reward for the nation’s small busi- nesses universally outweighs the risk. These sections will raise tax money to fund the bill’s spend. The provisions the GRC specifically objects to raise no new tax revenue, which will be further proven if/when the Congressional Budget Office scores these sections. The House Ways and Means Committee has approved a comprehensive tax bill that, among other tax-gener- ating proposals, includes numerous restrictions on IRA investments. The proposals have far-ranging impacts, but certain provisions will upend businesses that use self-di- rected IRA funds. If passed as proposed, effective January 1, 2022: The tax bill will prohibit almost all self-directed IRA investments in private real estate debt and equity while creating no new tax revenue. Current self-directed IRA investors in mortgage funds or private trust deed investments will be forced

to liquidate their positions within two years. The law has no carve-outs for redemption requirements of the offering documents. IRA accounts will be prohibited from investing in any assets the account holder or any family of the account holder owns, meaning private lenders and fund managers will be limited in avenues to demonstrate that they have “skin in the game” to their investors. Many high-income earners will be forced to take distri- butions from their IRA accounts well before retirement, dissuading the use of IRA investments altogether. CALLTOACTION If you’re interested in becoming involved in this endeavor, please reach out to info@thinkrealty.com to start the conversation. By exercising your voice as a housing provider and advocating for the real estate investing industry, you can do your part to invoke change for thousands of small business owners in the REI space. Informing legislators of all the good that real estate investors do is the first step in changing the narrative and shattering the stereotypes that plague the real estate investing industry. •

20 | think realty magazine :: december 2021

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