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Broadmark Real Estate Lending Fund

Home Real Estate Investing Broadmark Real Estate Lending Fund

  • Avatar hnnguyen3 
    Participant
    Status: Physician
    Posts: 20
    Joined: 01/08/2018

    Hello WCI members,

    I’m looking to diversify my portfolio.  I know WCI just wrote a bit about his real estate investment and mentioned Broadmark.  Does anyone else have experience with it?  From what I found online, the return last year was ~11-12% for Fund I and II.  Was that representative of your investment with Broadmark?  Thank you in advance.

    HN

    #98542 Reply
    Avatar NJDoc 
    Participant
    Status: Physician
    Posts: 196
    Joined: 02/07/2016

    I don’t have money with them.

    But, glancing at their website I believe they are a debt fund. So, that 11-12% return is fully taxable as ordinary income. It depends on your situation, and overall asset allocation but for me i would rather have tax sheltered real estate income at 8%.

    Just my opinion.

     

     

    #98544 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    I don’t have money with them.

    But, glancing at their website I believe they are a debt fund. So, that 11-12% return is fully taxable as ordinary income. It depends on your situation, and overall asset allocation but for me i would rather have tax sheltered real estate income at 8%.

    Just my opinion.

     

     

    Click to expand…

    So put it in your IRA.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #98560 Reply
    Avatar NJDoc 
    Participant
    Status: Physician
    Posts: 196
    Joined: 02/07/2016

    I don’t have money with them.

    But, glancing at their website I believe they are a debt fund. So, that 11-12% return is fully taxable as ordinary income. It depends on your situation, and overall asset allocation but for me i would rather have tax sheltered real estate income at 8%.

    Just my opinion.

     

     

    Click to expand…

    So put it in your IRA.

    Click to expand…

    Fair enough, I could do that.

    #98677 Reply
    Avatar DesertDoc 
    Participant
    Status: Physician
    Posts: 33
    Joined: 07/09/2017

    Wouldn’t putting it in IRA preclude backdoor roth?  I have a zero balance in traditional IRA.  I assume WCI is doing this with respect to an additional 401k plan or something similar to it?  I am looking into Broadmark at the moment and will likely do it via taxable account.  Not sure if that is wise or not.

    #173114 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    Wouldn’t putting it in IRA preclude backdoor roth?  I have a zero balance in traditional IRA.  I assume WCI is doing this with respect to an additional 401k plan or something similar to it?  I am looking into Broadmark at the moment and will likely do it via taxable account.  Not sure if that is wise or not.

    Click to expand…

    Mine is in taxable. But it’s super tax inefficient and I keep thinking about moving something out of my Roth IRA to taxable and putting this there. This is one of my favorite investments and outside of the WCI Network, my favorite non-traditional investment.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #173154 Reply
    Avatar Scopemonkey 
    Participant
    Status: Physician
    Posts: 92
    Joined: 12/28/2017

    I will echo the WCI; I’ve been in Broadmark for less than a year, in both Fund 1 and 2, and loving the passive income stream, around 10-11%.  They’re run by a group of careful, considered, intelligent people who are very conservative in their lending.  They converted the funds to private REITs this summer which apparently will increase the after tax yield.  Regardless, I’m fine to pay the tax on this income.  Which I did not have to toil to produce.

    #173210 Reply
    Avatar BlueCollarMD 
    Participant
    Status: Physician
    Posts: 19
    Joined: 08/20/2018

    Any suggestions on the best self-directed IRA custodian for this type of investment?  Some of the fees I see seem designed to bleed.

    #173241 Reply
    Avatar DesertDoc 
    Participant
    Status: Physician
    Posts: 33
    Joined: 07/09/2017

    I’m torn between investing in taxable or doing a self directed Roth with fees and reducing equity roth exposure.  I currently have 120k in roth.  I know Broadmark isn’t tax efficient, I’m just not sure its best use of my roth IRA and worth the hassle+fees associated with self directed IRA.  I have no hardmoney loans and I think this is best vehicle for doing so based on reputation and their diversification/zero leverage.

    #174415 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    I’m torn between investing in taxable or doing a self directed Roth with fees and reducing equity roth exposure.  I currently have 120k in roth.  I know Broadmark isn’t tax efficient, I’m just not sure its best use of my roth IRA and worth the hassle+fees associated with self directed IRA.  I have no hardmoney loans and I think this is best vehicle for doing so based on reputation and their diversification/zero leverage.

    Click to expand…

    Welcome to the club.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #174474 Reply
    Avatar Panscan 
    Participant
    Status: Resident
    Posts: 1152
    Joined: 03/18/2017

    can somebody explain more about getting involved in these? I looked through their website for a bit and could find information on the funds but not how purchasing any would work.

    #174482 Reply
    Liked by G
    Avatar DesertDoc 
    Participant
    Status: Physician
    Posts: 33
    Joined: 07/09/2017

    Looks like they became a REIT in Oct 2018, apparently this should lead to a 20% deduction if invested in taxable account.

    #174584 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    can somebody explain more about getting involved in these? I looked through their website for a bit and could find information on the funds but not how purchasing any would work.

    Click to expand…

    Just sign up, call, email etc. You have to be accredited of course. Do me a favor and let them know you learned about them here. I’ve been trying to get them to advertise with me. Same with Vanguard.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #174598 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1905
    Joined: 01/08/2016

    can somebody explain more about getting involved in these? I looked through their website for a bit and could find information on the funds but not how purchasing any would work.

    Click to expand…

    I emailed and got an email with several attachments and a couple MB of info…haven’t had a chance to go through yet.

    I’m presently more intrigued with this cityvest/pathfinder thing.

    #174610 Reply
    wonka31 wonka31 
    Participant
    Status: Physician
    Posts: 715
    Joined: 03/24/2018

    Panscan-you probably aren’t accredited if you’re still a resident. You will be two years after you’re finished though.

    #174629 Reply
    Liked by Panscan

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