How to Evaluate a Sponsor
Ryan Gibson, Chief Investment Officer, Spartan Investment Group
Ryan Gibson has talked to thousands of investors and has raised almost $200 million. He’s made dozens of placements himself, taken that knowledge, and turned it around as a passive investor.
It all starts with a good operator, Ryan says. But how do you find them?
- Know the difference between an operator and a syndicator.
- Ask about the company’s mission, vision, and values. Do they align with your own?
- Ask them to tell you about their worst deal.
- Find your own referrals rather than asking the investor to provide their own.
- Make sure you understand your investor’s communications plan/policy.
- Do the due diligence on the company, starting with operator due diligence, followed by property due diligence.
- Learn about their sponsorship fees and how they plan to spend them.
- Conduct a Google search to uncover any potential red flags like nonpayment complaints, inconsistent communications, or SEC complaints.
- Clarify what their investment thesis and exit strategy look like.
Ryan Gibson Best Ever Podcast Episodes:
- JF1226: Why Investor Relations Are Paramount & How To Keep Investors Happy with Ryan Gibson
- JF1882: How To Grow Your Investor Base & Keep Them Happy with Ryan Gibson
- JF2719: Top 10 Things to Ask Before Investing ft. Ryan Gibson
How to Unlock the Power of the Deferred Sales Trust to Raise Capital from Crypto Millionaires
Brett Swarts, CEO & Founder, Capital Gains Tax Solutions
Brett Swarts shared how to raise capital from crypto millionaires by using the Deferred Sales Trust to provide value in the following ways:
- Raise millions instead of thousands.
- Help investors defer 25%–50% in capital gains tax and defer income tax.
- Help others save their 1031 exchange.
- New depreciation schedule (80% for active).
- Optimal timing.
- Eliminate 40% estate tax.
- Diversification, liquidity, and debt freedom.
Brett Swarts Best Ever Podcast Episode:
Brett Swarts Best Ever Blog Posts:
- Why You Should Consider Using the Deferred Sales Trust (DST) Now More Than Ever
- The Wealth-Building Benefits of Tax Flow vs. Cash Flow
- Breaking Down the Deferred Sales Trust into 5 Steps
- 3 Perfect Storms Facing Wealth in America
- Using a Deferred Sales Trust to Sell Bitcoin
- Is the Legal Fee for the Deferred Sales Trust Worth It?
- Big Domino-Tipping Advice for High-Net-Worth Financial Clients
- Increase the Value of Your Professional Practice
- Bitcoin Sale: State Capital Gains Tax vs. No State Capital Gains Tax
- Deferred Sales Trust vs. Status Quo: Why Does My CPA Feel Uncertain?
Protecting Your Equity: Investing in Uncertain Times
Jeremy Roll, President, Roll Investment Group
Jeremy Roll’s biggest advice for 2022: “Don’t be stagnant right now or you will fall behind!” He explained how he is protecting his equity right now by focusing on three specific types of investments:
- Short-term investments that have relatively low risk, like hard money lending.
- Unique investments with unusual pricing or significant built-in equity upfront, such as multifamily with tax abatement.
- Investments in which he doesn’t have to worry about asset prices decreasing, like ATMs (depreciating assets).
Jeremy Roll Best Ever Podcast Episodes:
- JF46: Discover the Two Keys to Successful Passive Investing
- JF2613: 3 Pillars of Investing in Multifamily
Alternative Syndication Vehicle to Preserve Tax Planning Opportunities for Investors
Clint Coons, Founding Partner, Anderson Advisors
Clint Coons provided his top tips for preserving tax planning opportunities for investors:
- Instead of establishing a syndication’s management company as an S corporation, make it a C corporation. These corporations are taxed at a flat rate of 21%. Any remaining portion of the money you have made will then be taxed at this lower tax bracket.
- Avoid direct ownership whenever possible, since this brings on liability.
- Consider setting up a solo 401(k) off of your company — they’re not subject to the same tax restrictions as self-directed IRAs.
- In the event of a liquidation, set up a deferred sales trust with the investors who want to come with you. This gives them the opportunity to not pay taxes and provides an incentive for them to continue to stick with you.
More from BEC2022:
Top Takeaways from BEC2022 Day 2
Top Takeaways from BEC2022 Day 3