July, 2017 | Proper Wealth Management

SAFE vs. Convertible Debt For Raising Capital image

Until recently, I never heard of a SAFE, which stands for simple agreement for future equity. SAFE was created by Y Combinator to provide simpler, more easily understood seed investment. There are key differences between SAFE's and convertible debt and as an investor or founder, you need to be aware which is best for you. In Austin, I have only seen 1 SAFE investment and countless convertible debt offerings. It could simply be that SAFE's aren't as well understood or used in Austin and it's easier to go with what people know. Recently, there's been a few articles claiming that they're bad for founders and other article rebuffing that notion. Techcrunch recently released a post entitled "Why SAFE notes are ...

Selling Real Estate Without Paying Taxes image

Rental real estate can add diversification and income to an investors portfolio. What some people aren't aware of is there's a way for you to sell one property and buy another without paying capital gains. This is a called a 1031 exchange and it's incredibly common among real estate investors. Effectively, if you own a rental property on one side of town, instead of selling it and paying taxes and then buying another property, you could exchange one for the other. There are very specific rules within the tax code (section 1031) which highlight the rules, but you should consult your CPA or someone who's in the 1031 business (there are many people). There was a great article in Financial ...

Monthly ArchivesJuly 2017