Alternative Investments: Rapid Fire
Chapters in this video
- 0:00 DPPs, partnerships, and pass-through taxation
- 1:01 Liability tracks control: GP vs LP authority
- 1:57 Tenants in common and the survivorship trap
- 2:22 REIT structure and the 90% distribution rule
- 3:03 Equity REITs vs mortgage REITs
- 3:32 SEC-registered but illiquid: non-traded REITs
- 4:12 Hedge funds as private accredited-investor pools
- 5:24 Accredited investor net worth and income tests
- 6:24 Two-and-20 fee structure and high-water marks
- 7:25 Lockups, gates, and redemption traps
- 8:31 Rapid-fire exam recap
What this video covers
- Why a direct participation program (DPP) uses a K-1 instead of a 1099-DIV, and how the passive activity rules and at-risk rules cap what an investor can deduct
- How general partners and limited partners split authority and liability, and what happens when a limited partner crosses into management
- Why tenants in common (TIC) carries no right of survivorship and passes through probate, unlike joint tenancy
- How a real estate investment trust (REIT) avoids entity-level tax by distributing at least 90% of taxable income, and why its dividends are taxed as ordinary income
- The difference between equity REITs and mortgage REITs, including which one actually owns property and which one is rate-sensitive
- Why SEC-registered does not mean liquid, and how public non-traded REITs combine registration with illiquidity and double-digit upfront fees
- What "2 and 20" means in hedge fund fee structures, how the high-water mark protects investors, and the lockup periods, gates, and redemption limits that trap capital
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