# 23: which is better – a debt or stock deal?
For those of you who don't know where to start when you're offered passive or private property investment, today's show is for you. I'm talking about syndications or funds. It's about learning to do the right due diligence when deciding which is the best choice for your situation.
One of the first questions you should ask is a debt or stock deal? I have invested in both and would like to give you an insight into each one. In addition to today's podcast, we have created a course that will allow you to safely invest in these real estate deals. You can check it out at passiveincomemd.com/course.
It will help you understand what to invest in and what to avoid. They have an entire community that you can turn to if you need help. You also have access to exclusive checked offers.
Learn with us what is better – a debt or stock deal?
Let's look at five things about debt or equity deals.
- What is the difference between individual debt instruments and debt instruments?
- We consider the disadvantage of investing in debt.
- Invest for ultimate diversification.
- Real estate tax shelters.
- What is a share deal?
Here's a breakdown of how this episode develops …
You are essentially a partner in business. You may be a smaller partner, a limited partner, and you are not the so-called general partner, but the person who actually handles the deal.
When buying a rental property there is a so-called depreciation. I've already talked about it, when you buy a rental property, the government basically states that the building itself and all of the things in it have a shelf life. Over time, they will depreciate or depreciate. You can deduct that from your taxes annually or whatever.
Some people like these longer deals so they don't have to keep looking for new deals. But for some people, they know that their money will be tied up for so long, three, seven, or ten years. They don't like that. They prefer to do some of these debt deals where they know their money will only be held for six months, twelve months, or 18 months.
Should I invest in these equity options in retirement savings accounts, and as I mentioned earlier, many people like to do so with these debt options, debt instruments or debt instruments because they do not have to pay these capital gains taxes and can defer them and continue to transact these transactions and receive deferred tax benefits.
I try to be smart. Again, most of the time I try to put the debts on the retirement accounts and omit the stock trades. Sometimes I invest in debts outside of pension accounts. I mix and match to ultimately try to get the desired cash flow monthly.
And if you haven't done so yet, let me know what you think about this episode in one of our Facebook groups: Passive Income Docs or Passive income professionals
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