Magazine Q1 - How To Receive Income

When investing in one of my funds, people typically ask. How will I receive income? Is it going to be interest income? Is it going to be a return of capital? Is it going to be capital gains? So it depends on the type of fund that you invest in. So, the first type of fund that you can invest in is what's called a Debt Fund. A Debt Fund will pay a set amount of interest each month or each quarter or each year. Depending on how it's structured and all of that income will be classified as interest income to you.

Another type of fund is an Equity Fund. An Equity Fund is where you invest capital as a partner. So you have equity in whatever deal or deals are being done in that fund. And that equity can be returned in one of two ways. The first way, which is the tax advantaged way. And that the way that we like to do it is, we will return your capital and classify it as a return of capital. So it's not actually income to you. It's not a gain. And that allows you to pay no taxes on that income until you've returned all of your money to you. This is usually typically used in a, say a large development deal. Where it's not going to be spitting off a lot of cash flow. Maybe just a little bit throughout the period. And then you're going to get a big windfall of capital when you sell the asset or you refinance the asset.

So those are kind of the two ways that you can get income back. And then once you've made all of your money or returned all of your capital back, anything above that will be considered capital gains. Now, depending on how you invest in that fund, you can get around some of those taxes by either using, you know, retirement accounts or rolling it through special type of tax advantaged entities, like a charitable remainder trust, or using a third party and mixing it with a type of annuity, if you will.

So those are some different ways that you can get your capital back and how they'll be taxed. My name's Fernando Angelucci and I'm The Storage Stud.

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Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
https://www.TheStorageStud.com
http://titanwealthgroup.com/
Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
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