Hi Reddit I need your help. I want to do this deal structure
I’m working on getting into commercial real estate investing.

I’ve been following an investor name Matt Onofrio. He went from $80k to $150M in 3 years . 

He has a creative deal structure. 

He has an investor put down 20-25% or whatever is required to be able to purchase the property. 

It’s possible to accelerate depreciation right now and get a write off much as 50% of the PP of a property that can be applied to offset other sources of active income given you have REPS. 

The way that Matt does his deal is he gives 100% of the accelerated depreciation to the investor. He gives them a CAC return of 6-8 %. 

But he only gives them 1-10 percent equity in the property depending on the deal.


So here’s my question. I know that this kind of deal is possible in terms of allocating how much of the depreciation an investor gets, how much of the cash flow they get, and how much of the equity they get.


My question is on how it works with the recapture of the accelerated depreciation when you sell the property in the instance that I don’t 1031 exchange with them.

Is the same investor who put in the 25 downpayment payment hit with the Recapture of the depreciation? 

Have you guys seen a deal structure like this before? Have you used it? How did it work for you?

Does anyone have an account and a RE lawyer they recommend that would be familiar with this type of structure? 

Resources where Matt Onofrio talks about this: 

https://www.actionacademypod.com/from-anesthesia-to-abundance-160-million-at-31-years-old-w-matt-onofrio/

https://youtu.be/xTebDuQpbL4

https://youtu.be/s_pG2axhslw
[{"id": "iyp3rbf", "text": "Worth noting Matt is now facing federal charges for $35M fraud case and 3 felony charges. The is plenty of info out there now on how he was doing these deals illegally. Just wanted to share...", "replies": [{"id": "iz1uy4l", "text": "I wonder if Julian ever followed through and did the deal with Matt.", "replies": [], "depth": 2}], "depth": 1}]