Investing in alternative investments such as multifamily has the opportunity for great reward. But, with that reward comes the balance of responsibility on the part of the investor.
There are many companies offering services in the multifamily space, and it is easy to confuse one company's services with another. Although many companies offer educational and mentoring services regarding multifamily investing, SPI Advisory's sole focus is offering multifamily investments. We keep this hyper-focus to ensure we stay at the top of our game and perform as best as we possibly can for our investors.
At times we receive questions or requests for advice from our investors that are out of the scope of our services, and often these center around issues related to the type of investing entity the investors have used to take title in our investment (i.e., as an Individual, Jointly, with an LLC, with a retirement entity, etc.).
This leads to an analogy we use often to explain our services and your responsibility in these types of investments. The analogy is this: If you were to set up an account at Fidelity Investments and used the funds in that account to invest in IBM stock, you would approach Fidelity rather than IBM with questions about your account.
Your responsibility in garnering the possible rewards of these types of investments is in consulting with your legal counsel, tax advisor, and financial advisor to ensure you set up the type of investing entity that best meets your long-term estate, tax, and financial planning goals. It is also your responsibility to ensure you understand any tax ramifications for investing in these types of investments.
Since you are responsible for the account aspects of your title, this includes ensuring you have a will in place for beneficiary information and that you have a tax advisor who is knowledgeable about how to file taxes using the K-1 we will provide you annually.
Everyone's estate, tax, and financial situation is different, so consulting with experts who have knowledge in alternative investments like ours and who know the details of your situation will ensure you receive appropriate advice.