#233 How to Choose the Right Real Estate Fund ft. Nathan Clayberg of MLG Capital
In this episode, Dr. Peter Kim interviews Nathan Clayberg of MLG Capital. Join us as we delve into the current state of the real estate market, explore the opportunities and challenges it presents, and discover how MLG Capital’s investment strategies can help you achieve your financial goals. Nathan will share insights on tax benefits, diversification, and the Legacy Fund, a unique offering for passive real estate ownership.
MLG Capital brings this episode to you.
MLG Capital is a premier provider of private commercial real estate investment funds, offering accredited investors exclusive opportunities to diversify their portfolios. With over 35 years of experience, MLG Capital has a proven track record of preserving investors’ wealth while generating exceptional income and appreciation.
Their team is committed to cultivating trust in partnerships and providing a client-centered approach to how they do business. With a passion for innovation and efficiency, MLG Capital remains at the forefront of the real estate market, continually seeking new ways to create value for its investors and partners.
Are you looking for a community to encourage you as you begin, or want to accelerate your business to the next level? Then join thousands of physicians who share the same journey of creating their ideal lives through multiple streams of income by joining us in our Facebook communities such as Passive Income Docs and Passive Income MD.
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Episode Highlights
Now, let’s look at what we discussed in this episode:
- Market Conditions and Opportunities
- MLG Capital’s Investment Strategy
- Tax Benefits for Investors
- MLG Capital’s Fund Structure
- Legacy Fund and Future Plans
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
Market Conditions and Opportunities
The episode begins with Peter and Nathan discussing how the current real estate market is facing challenges due to factors like inflation, rising interest rates, and an increased supply of multifamily properties. However, they also share that challenges also present opportunities for investors.
Despite the challenges, there are still opportunities to be found in the market. The recent softness in the market has led to lower pricing and reduced competition, making it a good time to invest.
MLG Capital’s Investment Strategy
Nathan shares how MLG Capital focuses on buying properties at a discount to their fair market value. They believe that the current market conditions, such as lower occupancy rates and higher interest rates, are temporary and will eventually improve.
The company’s strategy is to acquire properties in areas with strong long-term jobs and population growth. They are also interested in properties that can be value-added through renovations or improvements.
Tax Benefits for Investors
Nathan continues by talking about how MLG Capital emphasizes the tax benefits of investing in their funds. They offer investors the opportunity to pass through depreciation losses, which can offset other income and reduce tax liability.
The company has conducted case studies that demonstrate how investors can potentially benefit from tax savings through repeated investments in their funds.
MLG Capital’s Fund Structure
In response to a question about funds, Nathan shares how MLG Capital raises funds through a syndication model, where investors pool their capital to invest in a diversified portfolio of properties. The company typically acquires 25-35 properties per fund, with an average investment range of $15-25 million per property.
Investors in the fund own a proportionate share of all properties in the portfolio. MLG Capital offers investors the option to invest in the fund at different stages, with different benefits depending on when they invest.
Legacy Fund and Future Plans
To conclude the episode, Nathan shares with listeners how MLG Capital is also offering a new product called the Legacy Fund, designed for investors who want to transition from active ownership of real estate to a more passive approach. The Legacy Fund allows investors to contribute their properties in exchange for shares in the fund, providing diversification and potential tax benefits.
The company is excited about the future and plans to continue investing in the real estate market. They believe that the current opportunities will not last forever and that it is important to act now to capitalize on them.
He also encourages those who are interested to visit their website at mlgcapital.com to learn more about them and what they have to offer.
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