The Paper Trail

Author: Chris Seveney

Welcome to The Paper Trail, where we follow the journeymy journeythrough the world of mortgage note investing. I'm Chris Seveney, and after years of buying, managing, and selling notes with 7e Investments, I'm here to share the real stories behind the dealswhat went right, what went wrong, and what I wish I knew earlier. From non-performing loans to seller financing to private lending, this show is about more than strategiesits about learning to follow the paper trail and doing the due diligence that separates the pros from the rest. Let's hit the trail.
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Language: en

Genres: Business, Entrepreneurship

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357| The Tax & Fee Anatomy of a Real Estate Syndication
Episode 357
Wednesday, 22 April, 2026

In this episode of the Paper Trail Podcast, Chris Seveney breaks down how real estate syndication returns change once taxes, fees, and deal structure are fully accounted for.Rather than focusing on headline IRR, the discussion centers on what investors actually keep after understanding their position in the capital stack, the tax implications of debt versus equity, and the impact of layered fee structures.Chris also highlights retirement-account pitfalls such as UBIT/UDFI in leveraged non-corporate deals, multi-state filing costs for K-1 investors, and the importance of using a CPA experienced with real estate and passive loss rules, urging investors to ask sponsors detailed structural questions before investing.00:00 Welcome and Overview01:21 Capital Stack Basics02:24 Debt vs Equity Taxes04:24 Gross vs Net Returns06:51 K-1s Depreciation Recapture10:50 Syndication Fee Breakdown14:48 Fees vs Waterfalls Promote19:07 Sponsors Cant Give Tax Advice22:07 IRA Investing UBIT Trap24:50 Multi-State Filing Costs28:33 Choosing the Right CPA30:42 Wrap-Up Key Questions34:10 Final Thanks and Sign-Off