Losing Proƒts Stinks! But Your House Doesn’t Have To

 Is replacing everything that smells causing your rehab costs to skyrocket?  Are you ‘sealing in’ odors only to smell ‘a little bit’ when the rehab is complete?  Are you throwing out refrigerators that stink but work just ne?

significant risk factors: All of the investments offered by Real- tyShares are private offerings, exempt from registration with the SEC. The required disclosures associated with the offerings are therefore less detailed than an investor would typically expect from a registered offering, and ongoing disclosure requirements are negligible. The offerings are also illiquid, with no preset liquidity terms. An investor should have no expec- tation of liquidity before the final liquidation of the real estate project. Because these offerings are only available to accred- ited investors, the liquidity in any circumstance will be more limited than for registered, publicly traded securities. Lastly, all investment involves risk of loss, and past performance is not indicative of future results. Neither RealtyShares, Inc. nor North Capital Private Se- curities Corporation, as institutions, advise on any personal income tax requirements or issues. Use of any information from this article is for general information only and does not represent personal tax advice, either express or implied. Read- ers are encouraged to seek professional tax advice for personal income tax questions and assistance. •

utilize, REITs aren’t always the investment vehicle of choice. Recent surveys estimate that institutional investors contin- ue to place between 80 percent and 95 percent of their real estate allocations into private real estate investments, rather than publicly traded REITs. In part, this may be because the tradability and leverage associated with REITs means they are subject to factors such as market sentiment. They are effectively part of the quoted equities universe, and so can be correlated with it—thus effectively negating one of real estate’s primary features as an asset class that is not directly correlated with the stock and bond markets. Some of the appeal, too, of direct participation vehicles lies in the inability of REITs to fully take advantage of the various tax benefits available through LLC structures. In addition to often being property-specific (as opposed to REITs and their “pools” of properties), pass-through investment vehicles such as LLCs not only avoid double taxation but also allow investors to obtain the full benefit of tax losses or incentives relating to depreciation, interest and other deductions that act to shelter or defer much of the income that is distributed from the invest- ment property. With real estate, the magnitude of the depre- ciation and interest expense deductions make this advantage potentially significant. Crowdfunding sites like RealtyShares allow smaller investors to follow the lead of institutions in potentially allocating most of their real estate investments into private pass-through entity syndicates.

OdorXit Concentrate is the answer!

I bought a house that had a real bad dog urine smell. I took out the carpet and padding and sprayed OdorXit Concentrate and water everywhere. I showed the house and sold it for more than I ever expected! There was never any mention of any odor. I would definitely buy more houses that have a urine smell since I now know I can get rid of that smell!

 ELIMINATES any urine smell on contact—on any surface.  Works better WITH soap.  Great for dead body smells, turned off refrigerator smells, and so much more.  All natural—no enzymes, guaranteed to work or your money back.  Don’t try everything else first. Upgrade now to OdorXit products and get rid of your odors the first time! Got a Smoker? Get AQM  The new safe and portable oxidizer/ odor destroyer using chlorine dioxide  Eliminates/oxidizes/destroys odors of smoke, mold, mildew and more.

Luis Martinez—HomeVestor Franchisee, Montgomery, TX

Lawrence Fassler, an attorney and real estate investor, is Corporate Counsel of RealtyShares, a leading real estate investment marketplace that places equity investments through North Capital Private Securities Corporation; a registered Securities broker-

thinkrealty . com / mag | 35 877-(Odor Xit) or 636-7948

dealer, and member of FINRA/SIPC. RealtyShares as an institution does not advise on any legal issues, and this article is for general information only and does not represent professional legal advice. Contact the author at

RISK FACTORS FOR PRIVATE DIRECT PARTICIPATION VEHICLES The direct participation vehicles discussed above still carry

34 | think realty magazine september :: october 2016

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