Table Of Contents
In this episode, Brandon and Thomas are joined by Kaylyn Deaver, CPA, a partnership expert, and they discuss what limited partners or passive investors need to understand about operating agreements.
This episode is sponsored by Landlord Studio and Tax Smart Investors.Full Transcript:
This podcast has been transcribed using AI, please excuse spelling, grammatical, and other errors.
Thomas Castelli 0:00
You're now listening to the real estate CPA podcast. Your source for all things real estate, accounting
Brandon Hall 0:05
and tax. Here we reveal our secrets that can save you 1000s in taxes, streamline your accounting process and help grow your business. Stay tuned to hear insightful interviews with industry experts, successful real estate investors and current clients on what strategies they use to grow their business, and how they steer clear of Uncle Sam.
Thomas Castelli 0:30
Hey everyone, thanks for tuning into this episode of The Real Estate CPA podcast today Brandon Hall and Thomas Castelli are going to be joined with Kaitlyn Dever and we're going to discuss what limited partners are passive investors need to understand about operating agreements because when you invest in the syndicate or fund, you are really investing in a partnership. And Kailyn is a partnership expert. And we're going to ask her a bunch of questions that she will need to know as a passive investor. So before we dive right into that, if you're doing yourself landlord managing rental properties the landlord studio is made for you. The software helps landlords simplify income and expense tracking. With their easy to use app, you can digitize receipts record income and expenses in real time and generate reports and even managed leases and tenants plus landlords Studio makes late rental payments and bank visits a problem of the past with secure online rent collection get the rent paid directly to your bank account. And you can even automate rent reminder emails and late payment fees. Landlords studio is also the best way to stay tax compliant. They offer a range of financial reports including Schedule II and supplier expense reports designed for tax time, you can learn more about landlord studio and start your 14 day free trial at landlord studio.com/cpa. And use the coupon code real estate CPA at checkout to get 25% off your plan. Again, that's landlord studio.com/cpa and use the code real estate CPA to get 25% off your plan today. Alright, so now we're back Kaitlyn would you be able to give us a quick introduction to yourself for anybody who may not have listened to prior podcast episodes that you were on?
Kaylyn Deaver 2:05
Yeah, absolutely. Thanks Tom for having me back. I don't know if you've noticed just in the three seconds that I've started talking my audio quality might be a bit better. I did upgrade to a big mic for podcasts reporting from here on but yeah, thanks again for having me back. I'm Kaitlyn Dever, tax manager over here at the Real Estate CPA and then here about a year and a half and I specialize in partnership taxation and dealing with our largest clients with their syndication projects.
Brandon Hall 2:33
Alright, so last episode we are this whole series we've been talking about limited partners investing in syndications and what it means for the passive activity loss rules and, and how to estimate bonus depreciation and all that stuff. Last episode we touched on how do you actually estimate bonus depreciation so you got to understand how much capital is being raised. You have to look at that operating agreement and understand how the profit and loss allocations are being made. And we wanted to pull Kailyn on because Kailyn works with operating agreements on a daily basis. She's one of the firm's the firm's tax expert related to partnerships so wanted to get her on and answer some questions for us. But before we do launch here just want to let me know that I do officially have a tick tock account now the my handle is at tax me if you can use the love the movie Catch Me If You Can always saw those grades so got tax me if you can as my handle the good check that actually if you're watching this on YouTube right now, I actually have a blazer on. So I started doing that for my tic tock videos just like a shirt. It's very like I feel like Silicon Valley, you know, just kind of like a little shirt underneath and then a blazer on to but going to show these guys up right gotta kind of out dress Tom and Kailyn here on the on the podcast, keep dressing
Thomas Castelli 3:46
like that might have to upgrade my wardrobe to blazers and the I would love to do that.
Brandon Hall 3:51
We're talking about partnerships, right? This is bigger stuff. So we get a look. We got to look nice right now, but I've been posting on Tik Tok. So go join me. And it's kind of just funny, funny stuff.
Kaylyn Deaver 4:02
Brandon, I'm just curious is one of your favorite employees. And we'll see which one of our employees listens to this podcast. But as long as your favorite employees at what point do I get rewarded is employee perk of being followed back by you on tick tock because I've tried to send you a few tic TOCs and they get declined because there's no reciprocation here.
Brandon Hall 4:24
So for me to follow really anybody you have to earn it, right? So you got to like send me some trial tic TOCs maybe email or slack or whatever. And I'll decide I'll kind of like you know, gauge how funny they are, and then I'll decide if it's worth following you back. And that goes for anybody that wants me to follow them. So great question. Very good question. All right. Let's talk partnerships here. Right. So Kailyn what is an operating agreement? Why should a limited partner care about the deal's operating agreement at all?
Kaylyn Deaver 4:57
Operating Agreement? It is just it's the backbone Have an entity structure, it's going to tell you everything. So to start with, it's this huge legal document that attorneys put together. And you can see an operating agreement with 15 pages up to 80 pages. But don't be intimidated by them. Typically, they follow the same structure no matter how long they are. So they're going to start with just kind of the organizational matters, company formation, the name, the purpose, who the manager is of the company. And they're all going to follow the same structure throughout the entire operating agreement, and then they'll move into how they're going to be taxed. And you'll see that typically they're taxed as a partnership, then you'll see if they're making any specific tax elections, the members in the company, you'll see definitions up front, which is really good. I like to tell people, if you see something capitalized in the operating agreement, odds are, it's defined at the beginning or the end of the operating agreement. And those definitions can make or break what is truly in that operating agreement. And then you move on real
Brandon Hall 6:01
quick, when we're talking about capitalized, you mean like like your a capital letter in a word.
Kaylyn Deaver 6:07
Yeah, a capital letter and a word. Sometimes you'll see it in quotation marks, but that'll send you back to the definitions section. And you really want to pay attention to that. So then you just keep moving through the operating agreement, and you'll see how the allocations are going to be made. That's typically about midway through the operating agreement, it no matter again, if it's 15, or 80 pages, it's about midway through the operating agreement, how allocations are going to be made, specific tax code sections are going to be referenced in there. And then you'll move on to the end, distributions, liquidation, things along that line, what happens when the company is ending, and they're winding down. So
Brandon Hall 6:46
let's say that I'm an investor, I have $100,000, to invest, and I go around to the different GPS, and I listen to their pitches and their stories and all that type of stuff. Let's say that I find one that I like, you just told me that the operating room has all the details, what should I be looking for in the operating room? So I heard this person's pitch? Right. And I liked what I heard. But how do I make sure that what they said, makes it into the operating agreement?
Kaylyn Deaver 7:12
So on the last podcast that you and Tom put out this past week, you know, you talks about how are the allocations made, and that's going to be part of their pitch. And then you get to go into the allocation section, the operating agreement and compare that one to one. So if they're saying you're going to get 30% of the bonus depreciation being allocated to you will then go find it in the operating agreement and see, how is the profit and loss section laid out? Does it say that it's going by capital percentage? Or is there a special allocation being made? Like through a waterfall type of allocation? And if that's the case, can you really back into those numbers? Is it a true 30%? Or are you walking through a waterfall structure? And you might get 30%?
Thomas Castelli 7:56
That's important clarification right there. Because you can easily say something or put something, you know, on some marketing materials, but the real answer comes down to what's actually in the operating agreement. And that's something people need to keep an eye on.
Brandon Hall 8:09
Tell us what you normally see in an operating agreement in terms of like the Profit Loss allocations, like, how do we even find the profit and loss allocation section? And what am I what am I kind of looking for, but what is normal look like?
Kaylyn Deaver 8:22
So I would say there's probably three different types of normal. And you know, going back again, to your last podcast that you just recorded, and talking about the LPs are typically the ones the limited partners, the LPs are typically the ones that are investing the capital, they're making the capital contributions. And so a lot of times, I would say the majority of what we see is, they're the ones that are going to first recognize the bonus depreciation, they're the ones that the bonus depreciation is going to be allocated to them, because their capital account is starting at a positive number, because they're the ones that actually inject capital into the partnership. However, another thing that we often see is because a GP So a general partner knows that these LPS can't always recognize the depreciation right? Then sometimes they'll structure it differently so that the LPS recognize more of the upside, as the fun continues, and it's Generating Positive Cash Flow and positive income. But the GPS in the first couple of years are going to take more of that bonus depreciation and those losses. And that's their compensation. And they're looking at it for more of a tax loss perspective. And they're taking advantage of those losses rather than looking for actual income coming to them because it's offsetting their other income that they're receiving and other partnerships or other activities.
Brandon Hall 9:45
How can they do that though? Because most most GPS most general partners, at least in my experience, they put very little money into the deal, if any at all, but they'll get like a really large stake of the deal, right and you just kind of explained capital accounts. And we know in partnership tax law that your capital account can't go below $0. So how does a GP that gets allocated this depreciation that creates this tax loss? Why do they get to claim the tax loss?
Kaylyn Deaver 10:14
Yeah, absolutely. So this really goes back to Section seven and four B and partnership, taxation, just one of the most complex sections in the code. And what's in there is that basis and capital accounts are two different things. So that although your capital account on your K, one might say that you have a negative capital account, you may actually still have basis. And that's where these GPs are taking advantage of these depreciation losses being passed to them. So although they did not put money into the deal, they're allocated qualified non recourse debt. And that's also going to be outlined in your operating agreement, you can see exactly how much your GPS and your LPs are entitled to it's going to be a percentage, again, of the QR is what we like to call it over here on the tax side. So what is QR, it is the debt that secures your property. So it's the mortgage exactly that securing your property, any other types of accounts payable or notes payable, that's just going to be non recourse and there is a specific difference between qualified non recourse and non recourse. So your non recourse does not give you basis. So it's not giving those GP spaces or you as an LP, but your qualifying non recourse. So exactly matched to the property, that debt is what's giving those GPS basis to be able to take those losses, even though they didn't put money into the deal, right.
Thomas Castelli 11:39
So you know, as an LP, you would have a capital account, you put capital into the deal, that increases your basis. Now, for the general partners, they don't have much basis due to capital, because they usually don't contribute that much capital, if any at all. But what increases their basis and their ability to take the passive losses is derived from the QSR, the qualify non recourse that that's what gives them the basis,
Kaylyn Deaver 12:02
exactly. And we've seen that come into play a couple of times where a GP doesn't put any capital into the partnership, or they put very little, and yet they still recognized all of the depreciation benefits that the fund generated in that first year from the cost segregation study, then ultimately, that was their way as GPS being compensated for running the fund. So if you're saying that, another thing to look for, and the operating agreement is any other fees that the manager or the GP is entitled to for running the fund. So it's you really want to weigh out? How is your GP being compensated? You know, are you saying asset management fees or disposition fees? Or acquisition fees? Or are you seeing them take advantage of the tax depreciation, and they're taking advantage of those losses?
Brandon Hall 12:53
So if I hear you correctly, a GP allocating a large portion of losses back to themselves and, and having that basis to claim the losses? Thanks to the Q and R? That's not necessarily a bad thing. It depends on the economics of the deal and how they're potentially sweetening it for you on some other level or what other fees are involved. Is that kind of the gist?
Kaylyn Deaver 13:16
Yeah, exactly. You know, I don't think you can take a deal and just consider the depreciation, I think you have to take in the full economic structure of the deal and see how else is the GP being compensated?
Brandon Hall 13:29
Yeah. And I think that's important to know. Because I know, in years past, when I'd be talking to limited partners about this, they would feel kind of like, I don't want to say ripped off is the right word. But something along those lines is the feeling that I'm trying to describe of like, well, it's not fair, the GPS taking off this. But if you're getting good economics, if you're getting good returns out of the deal, and you're happy with that, then it's not a bad thing for the GP to reward themselves in different ways. And I say on some of our talks, too, I think even recently, maybe even on the last podcast, I think I said it on the last podcast, you me personally as investor, if I'm putting capital into a deal, I want my capital account that good to zero before anybody else gets tax losses. But a GP could talk me out of that, you know, if a GP says, you know, we're going to, we're going to allocate based on economic interest, maybe my economic interest is 5% or something. So I only get 5% of the tax losses, but that's how we're going to allocate losses. But well, to actually I'll pose this question to you, let's say that I'm considering this is my mindset, right? I want all the tax losses before anybody else is allowed to have any right let's assume that that's my mindset. So it kind of is. So I put 100k into the deal. I get some, you know, 5% stake or something as a result. So my capital accounts $100,000. I'm pretty set on receiving $100,000 of loss allocations before the GP is allowed to take any losses, which means that they have to wipe out all of their limited partner capital. counts most likely until they can take any losses themselves. How could achieve P sweeten the deal for me to convince me that an allocation based on economic interests, so I only get a 5% loss allocation, or some special allocation of depreciation is okay, so how can they sweeten the deal for me to convince me that the deal is still good to invest in?
Kaylyn Deaver 15:23
Yeah, Brandon, I'm really glad you brought this up, because I was just listening to the podcast that just dropped. And I gotta say I was, I was a little skeptical because everybody wants to take your advice. But I think there's other ways that you could think about it. So I'm glad we're talking about this,
Brandon Hall 15:36
enlighten me and light.
Kaylyn Deaver 15:38
So a lot of times, what we'll see in offering agreements is, like I just mentioned earlier, asset management, these are not uncommon, and they're taking this every single year. And it's just literally the assets under management that just as you would see a financial advisor take, you'll also see acquisition fees, again, very common, and you'll see disposition fees, very common. So these fees are occurring throughout the whole life of the partnership. But at the end of the day, that's how your GP is being compensated. So if they're giving up fees like that, or if they're doing a different split of profit and loss later on. So I guess let's just talk about it from the profit perspective, they're doing a different split of profit later on in the deal, you know, maybe there's an unlimited return for you. Whereas if they're allocating all depreciation to you up front, they might cap you at a 15% IRR. So there's no guarantee and I think you just you can't take a deal, just based off depreciation, you have to look at all the factors that are coming into play there,
Brandon Hall 16:41
I guess they could also sweeten the preferred returns, they could, if they didn't have one, they could add one, or they could make it greater than like other GPS as I'm shopping. The pref could be higher, or I guess, to your point, that profit split. I know a lot of our clients that are on the GP side, do waterfall agreements, where it's like, Alright, the first 10% that we earn 70% Go into LPS 30% Go into GPS, the next 5%. Now we're at 15%, split 5050. And then beyond that, it's like 100 GP zero LP, and I know that that was probably skipped two or three more hurdles, but just for the sake of time, I guess something like that, they could basically increase the hurdles, right. So instead of saying 10%, now we're gonna give you up until we're gonna give you 70% of the profit allocation up until 12% IRR. And so they could basically increase the hurdles to sweeten that that profit allocation for me at some later point, which is probably more advantageous, actually, now that I think about it, because if I get allocated 100% of that depreciation, yeah, I get a tax loss today. But now my basis is zero, right? So whenever you sell this asset later, now I have to recapture all that basis depreciation recapture, and it comes at higher tax rates if there's bonus depreciation involved. So it might actually even be better. This is great. This is great. I've already learned something on this podcast. I've like changed my mindset now. So so really, you should be gunning for like some depreciation, maybe not 100% depreciation? I mean, fine, if you can, but really, it should be like, can we push these IRR hurdles up a little bit so I can get actual cash money back in my pocket? That I don't have to pay back? I mean, I've got to pay tax on it. But you know, or I layer it with 100% depreciation.
Kaylyn Deaver 18:21
Absolutely. And to follow up points to that, you know, you talk about recapturing depreciation, and when you recapture bonus depreciation that's going to be at your ordinary rate. So if you're maybe allocated depreciation this year, but next year, you're in a higher ordinary tax bracket, when you have to recapture that depreciation, it could be recaptured at a higher ordinary rate. Rate point. And then also let's let's just take numbers out of the deal for a second, let's let's talk about the risk of a deal. You know, every sponsor is different GPS, I've done one deals and you're jumping into their next deal and some GPs have done two deals. So a risk is just a factor to take into consideration to when you're thinking about how much depreciation Are you going to be allocated?
Thomas Castelli 19:08
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Kaylyn Deaver 20:38
So typically, by the time that we're seeing the operating agreement from the LPS perspective, and LP has been on the operating agreement, at that point, they may even have a few investors already signed. So at that point, they're typically not changing things. However, on the GP side, when GPs are pulling us in for advisory services, right before they launched their fund, and they really bring in investors, we do have a little bit of input there. And you know, we can talk about where the asset is located, what kind of asset it is, you know, is it Class A or class B, and we get to talk about the preferred returns, As Brandon mentioned earlier, so we get to really highlight all aspects of the deal. And so at that point, when the GPS before they've ever brought in investors, they're much more open to manipulating or changing that operating agreement before they really launch it. Because at the end of the day, you know, the GPS, that that we're talking to the gin, they genuinely do care. And they want to make sure that they take care of their LPs, and that their LPs recognize some sort of tax benefit, because that's the way they're raising capital, they're typically raising capital on the benefit of the LP Otherwise, no one would invest with them.
Brandon Hall 21:47
Kind of along those lines, talk a little bit about the collaboration between general partners and limited partners, when they're building operating agreements, like you just kind of talked about, like this operating agreement built out that occurs with the GPS, and how they can potentially be flexible on things. Are they more flexible, when there's a small group of limited partners? I imagine a small group of limited partners is bringing a lot more like each individual person brings a lot more money to the deal. Do you see that those limited partners have say in how the operating agreement is structured? Like how flexible RGPS in that regard?
Kaylyn Deaver 22:21
Yeah, absolutely. And I also think that really goes back to how many deals has this GP already done. Typically, when we see a GP and their first or second deal, they're very flexible, because they're bringing in typically friends and family. And so they want to make sure that everyone's getting a good piece of the pie really to say, once you see a GP who's done 15 to 20 deals, they know, they know what their investors are looking for, because they're typically pulling from the same group of investors every time. You know, they're, they're sending out notifications that they're they're going to be raising capital for a new fund. And they know exactly the tax benefits that their investors are looking for. So I think by that point, there's not a whole lot of flexibility, just because they're very in tune with the investors that are coming into their deals.
Brandon Hall 23:07
got it got it. Cool. So So we've talked about building the operating agreements, we've talked about the profit and loss allocations and the operating agreements, prefs, those types of things, q and r and all that, what should investors be reviewing in an operating agreement? Or what should they know, related to the sale? Like what part of the operating agreement talks about the sale? And what should they be looking for there?
Kaylyn Deaver 23:30
So 99% of operating agreements are going to spell out what happens at the time of dissolution, or in the refinance event, and so in a refi, and then you know, the partnership is getting this large influx of cash flow. And a lot of times the refi and dissolution section are going to be lumped together, because that's when your capital will generally be returned. If it hasn't already, they're going to do a return of capital to LPS most often. And then in a distillation section, they're going to pay off all their debts, of course, and then that's typically when you may go back to the profit and loss allocation section. If those two are really inextricably tied together, or it may just be a separate distillation section and a separate waterfall at that point to calculate, you know, your ending true returns on the life of the partnership. But again, typically, all operating agreements are structured the same. And so that's that's the end of the partnership. So is it the end of the operating agreement?
Thomas Castelli 24:27
So when it comes to like kind of tax preparation, how does an investor as an LP How do you know that what was on the operating agreement actually makes it onto your tax return that it's actually reported the right way?
Brandon Hall 24:38
To add on to that, how do you know that your k one is correct?
Kaylyn Deaver 24:42
A great question and you hire a very intelligent and a very honest CPA with high integrity.
Brandon Hall 24:49
Good answer. Snaps for Caitlin.
Kaylyn Deaver 24:55
These these these operating agreements are complex, you know they're drafted by an attorney. And it takes a CPA that scene a couple to really understand the logistics of it and the economic structure. So at the end of the day to really vouch that your k one is correct, is simple as it may be, or as complex as it may be for an LP, try to really understand before you put money into a deal, what the general partner is targeting, and what are they saying is going to be returned back to you? What are they saying is going to be allocated to you. And then you can take that and back into, you know, how the fund did for the year and calculate what you should have been allocated?
Brandon Hall 25:35
When did the rules change where you have to now show capital accounts on the K ones, I believe that occurred in
Kaylyn Deaver 25:41
2019, or 2019.
Brandon Hall 25:43
Okay, because I remember before that, people were getting K ones, and like capital accounts would not show at the bottom left of your k one, it shows your capital account shows your beginning balance, cash contributions, cast distributions, and then your share of the profit and losses and then what your ending capital account was. And I just remember that before, it was required that these capital accounts be reported there every year. Very rarely. But every once in a while, we would run into a situation where somebody capital account was not actually accurate. Whenever you look at the actual tax return, and the actual books, what made it onto their K one, because that section was blank, they couldn't track it year to year. And so when the deal would liquidate, they got paid less than what they should have gotten paid. And the GPs are typically pretty good about fixing that at least, they have been in all the cases that we've worked on that we've only worked on, I think like four or so. But that happened. So I mean, you listener, if you're investing in these deals, you should be looking at that k one and understanding your capital account analysis at the bottom left of your k one, to make sure that it's correct. And it should be reflective of that operating agreement. I mean, you should be able to look at that k one and say, Okay, this is what I expected. It should not be surprising if you've taken Caitlin's advice, and you've looked at the various sections of the operating room before you pull the trigger on investing.
Kaylyn Deaver 27:05
Yeah. And to follow up on that your k one is also going to show your profit and loss and capital percentages. And you know, don't be alarmed if those are different simply because when you look at the operating agreement, your capital percentage may be 30%. But when you go back into the operating agreement, and that profit and loss section, you know, you may only be receiving 5% of profit in that year. And so those change year over year, per IRS regulations, and just how that capital Profit Loss percentage is supposed to be reported. It's based on what you've been allocated that year. So take a look at it. And if it doesn't make sense, start asking questions, but don't be alarmed if they don't match up, just because they might not always be allocated based on your capital percentage that you see on the last page of the operating agreement.
Thomas Castelli 27:54
Oh, you know, this stuff is really complicated. Caitlin, I think we're gonna need to do like a boot camp or some kind of like course on this, because I could definitely see as being very visual having to walk through our brain agreements having to step through them, because yeah, I mean, if I'm a new LP investor, what you just said, sounds very foreign. So
Kaylyn Deaver 28:09
and therefore, let's do it. Let's see what we can get together later this year for our LPs. I know we have a lot that listen each week, and you guys are incredibly helpful. So I get positive feedback all the time on the podcast.
Brandon Hall 28:21
Good. If anybody wants to email me positive feedback about the podcast, please, please do that. Either in our Facebook group, tech, smart real estate investor, Facebook group, or you can email contact at the real estate CPA, you know, we we've got like 70,000 downloads a month now. I mean, this is like a big podcast now. Right? You know, Tom, and I appreciate that praise, or just actually here, do this. Instead, leave us a five star review on iTunes. We would appreciate that more than anything. So go to iTunes leave us a five star review. It helps us get pushed up in the rankings and helps other investors discover us to help your peers discover us help other investors discover us by leaving a five star review. We'd really appreciate that.
Kaylyn Deaver 28:59
And lastly, shameless plug after you have left your review and email and your praise. Go follow Brandon on Tik Tok, and make sure to leave a comment there. The podcast this week was great.
Brandon Hall 29:10
Tick tock tick tock is hilarious man. Tick tock is great. I posted a text post on January 25. In a text post is basically just like me, like kind of like bobbing my head back and forth in the background. And then there's just text like on my face. There's the strategy, you make it a seven second post, but like you can't read all the text in seven seconds. So it takes like 10 seconds to read the text. Then the reason you do that is tick tock only cares about watch time, right? They would look at that and say, oh, somebody spent 10 seconds on your seven second post. That must be a really high quality post because the watch time is above 100%. Right. So it just keeps looping. But what the text post I just basically stated two facts. I said President Biden, he ran an S corporation 2018 Here in $3 million, and of the 3 million he took 300k of w two wages Just so he avoided self employment taxes on $2.7 million. And if you're a listener of this podcast, you know exactly how that works with an S corporation. And then on the same post, I also said in President Trump invested in it, or donate a land conservation easement got a $21 million charitable contribution deduction, that's all I put, I didn't say if either one was good or bad or whatever. And it was great, because exactly what I wanted to happen happen, people jumped into the comments, they're all fighting each other. But as they're all fighting each other, my video is just looping in the background, right? So I'm just getting these watchtime bonuses, essentially, as my video loops in the background, and people are warring each other. But you know, a sad, you know, it's really sad. This morning, I woke up. And I had 64,000 views of the video yesterday evening at 8pm. And then I noticed that all of a sudden, it was really slowing down. And it was just trickling, whereas I expected it. I've had a couple others kind of like go big time. And I expect this one to also be big time, like really big time. And and so I woke up this morning and was still at 64,000 views. And I started doing some research like why why did this video get stuck at 64,000 views? And I realized that it's most likely I don't know, for a fact. But what happened was people in the comments kept mentioning, and I don't even know the story, to be totally honest with you. But they kept mentioning that Biden received money from China. And because they kept I think what happened was because they kept using the word China, that tic tock stopped my video from going out. Because I'm pretty sure that's what happened. So I went deleted the comments, but it's still it's still stuck at 64,000 views. Yeah. Isn't that sad? Anyway, it's kind of amusing. So if you want to go follow me on tick tock, my goal is to create tax controversy. So at tax me if you can, and yeah, I would appreciate it. Appreciate fall. All right, well, Kailyn, before I pass it to Tom, to close this out, I've got one final question for you. So I'm gonna eliminate investor, I'm about to, you know, invest in my first deal. I've listened to this podcast, all really great advice. Are there any additional tips that you can think of that I should be aware of? Before I pull the trigger?
Kaylyn Deaver 32:11
I would simply just start asking questions. You know, I think the more open and transparent that those GPS and those sponsors are with you, is simply the better feeling that you're going to get about putting your money in a deal there. And you just know that they are going to be honest about the returns that you're going to see the profit and loss that you're going to be allocated and just how you can expect the deal to run over the next you know, three 510 years.
Thomas Castelli 32:36
All right. So that's about all for today. Thank you so much, Caitlin, for coming on the show really appreciate your insights. Looking forward to seeing what you have in store for some of our future events, which we'll be announcing next week. I want to thank everybody who is listening to the podcast today can go ahead and leave us a review on iTunes five stars always helps us in the rankings, and we really appreciate it and we'll catch you next episode.
Brandon Hall 32:58
Thanks for listening to today's show. If you enjoyed the show, please find us on iTunes and leave us a review. You can also email us at contact at the real estate CPA comm with any feedback or topic suggestions, we are always taking on new clients and with the new tax laws in play. You really don't want to navigate this alone. Let us help you save money on taxes with your accounting and CFO needs. To become a client navigate to our client page at the real estate CPA calm and fill out a webform with as much detail about your situation as possible. Thanks so much for listening. Have a great rest of your week.
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