A tax bill nothing offsets
Income lands in the top bracket with almost nothing left to deduct. Their CPA is optimising the last four percent, because that is all that is left to optimise.
Everything an owner gets. Nothing an owner does.
You hold real equity in the building and receive the cash flow, the depreciation and the loan paydown that come with it. The leasing, the renovations and the 2 a.m. calls are ours.
SEC Reg D 506(c) offerings
Third-party property management
Quarterly distributions
Self-directed IRA eligible
K-1 delivered by April 15
The investors we work with
are solving for the same four things.
Engineers, physicians, business owners, tradespeople. People who are excellent at earning and stuck at owning — because high income is taxed like a luxury and invested like a commodity.
A net worth that is ninety percent paper
Everything they own moves on the same headlines at the same time. When the market coughs, their retirement date moves with it.
No hours left to be a landlord
They ran the numbers on a duplex, added the tenant calls, the turnovers and the roof, priced in their own weekends, and quietly closed the spreadsheet.
No way into the deals that work
Well-run apartment communities trade in rooms they were never invited into. By the time an asset is publicly marketed, the margin is already gone.
From landlord to owner.
Owning rentals yourself
- You are the leasing agent, the collections department and the emergency plumber.
- One vacancy in a four-unit building erases a quarter of your income.
- Financing is personally guaranteed and priced for a retail borrower.
- Value is set by the neighbour's sale price, not by anything you control.
- Cost segregation rarely justifies its own cost at that scale.
Owning alongside Mallard
- A professional management company runs the asset; you receive a quarterly statement.
- Vacancy is spread across 200–300 units, so a single move-out is a rounding error.
- Agency debt is non-recourse to you. Your exposure is capped at what you invest.
- Value is a function of net operating income — something we can actually operate on.
- A full cost segregation study runs on every asset. The depreciation flows to your K-1.
Four returns from
one apartment building.
Cash flow, tax shelter, forced appreciation and loan paydown are not alternatives you pick between. A single well-run asset produces all four at once, and they compound on each other for the length of the hold.
Cash flow, paid quarterly
Distributions funded by rent that was collected whether or not the market had a good week. Apartment leases also reprice every twelve months, so the income has an inflation adjustment built into it.
A tax shield on your other income
A cost segregation study on every asset accelerates depreciation into the early years. For many investors the resulting paper loss offsets most or all of the cash actually received.
Appreciation we create, not wait for
Apartment buildings are valued on net operating income. Raise collected rent and cut operating waste and the asset is worth more — without needing the market to do anything for us.
Equity your tenants pay for
Every rent cheque retires a little more loan principal. Your share of the building grows quietly in the background, whatever the asset is worth on any given day.
How an acquisition is evaluated.
Rent growth follows employment growth with a lag of roughly eighteen months. The process therefore begins with the labour market and narrows to the asset, in that order.
Market screening
Submarket employment growth, the permitted-unit pipeline and median renter income are reviewed before any property is modelled.
Asset selection
Communities of 150 to 350 units built between 1980 and 2006 — large enough for an on-site team, below the size institutional capital competes for.
Underwriting
Rent assumptions are capped at what comparable renovated units within two miles achieve today, then stress-tested against flat rents and higher costs.
Capital structure
Fixed-rate debt at a maximum of 75% loan-to-value, with twelve months of reserves funded at closing from the raise.
Four steps. Roughly three weeks.
Introductory call
Fifteen minutes with Seth. We confirm accreditation, talk through your goals and tax position, and tell you honestly if this is a poor fit.
Review the offering
You receive the full package — PPM, operating agreement, underwriting model and market study. Take it to your advisor. Ask hard questions.
Subscribe and fund
Sign electronically, verify accreditation with a third party, and wire. Self-directed IRA capital is accommodated.
Own it
Quarterly distributions and reporting through the investor portal. A property-level update every quarter, and a K-1 targeted by April 15.
Four ways to own real estate.
They are not interchangeable.
We lose a row on purpose. If liquidity is your first priority, a REIT is the better instrument and we will tell you so on the call.
| Mallard Legacy Partners | Public REIT | Your own rental | Index fund | |
|---|---|---|---|---|
| Direct ownership of the asset | Yes — you hold equity in the LLC that owns the building | No — you own a share of a company | Yes | No |
| Depreciation passed to you | Accelerated via cost segregation, on your K-1 | Retained at the entity level | Straight-line, usually unaccelerated | None |
| Correlation to public equities | Low — valued on property income | High — trades with the market | Low | It is the market |
| Your time per month | Minutes — read the quarterly report | None | Five to twenty hours | None |
| Liquidity | None. Capital is committed for five to seven years | Daily | Months to sell | Daily |
| Sponsor capital at risk | Seth invests personally in every offering | Management compensated in stock | All of it is yours | Not applicable |
| Who fixes the water heater | An on-site team you never meet | Somebody else | You, at 2 a.m. | Nobody |
Table is scrollable on narrow screens. Comparison is general in nature and not a recommendation of any security.
The questions that come up
on every first call.
Our offerings are open to accredited investors only, as defined in SEC Rule 501 of Regulation D. Most investors qualify on income — $200,000 individually or $300,000 jointly for each of the last two years — or on net worth above $1 million excluding a primary residence.
Because our offerings are made under Rule 506(c), accreditation must be verified by a third party. We use a service that handles this in a few minutes; you never send financial documents to us directly.
We do not have one. Mallard Legacy Partners has not yet completed an acquisition, has no assets under management, and has never paid a distribution. Any figure you see on this site is an underwriting target or a stated commitment — never a result.
That is a real risk and you should price it. What we offer instead is a narrow buy box you can hold us to, fixed-rate debt, reserves funded at closing, experienced partners on the transaction, and Seth's own capital in the deal. If a first-time sponsor is outside your risk tolerance, we would rather you said so on the call than found out three years in.
Plan on five to seven years. There is no redemption window and no secondary market. This is the real trade-off of private real estate: the returns come from executing a business plan through a full cycle, and that requires patient capital.
We say this plainly because the single worst outcome for everyone is an investor who needs their capital back in year two. If there is any chance you will need this money, invest a smaller amount or wait.
Distributions can be reduced or suspended to protect the asset. That is the mechanism working as designed — cash stays in the property to cover debt service and reserves rather than being paid out and then called back.
Every offering will be underwritten with twelve months of reserves funded at closing and with fixed-rate debt that extends beyond the business plan, specifically so that a soft eighteen months does not become a forced sale. If something goes wrong you will hear it from us before you read it in a report.
An acquisition fee at closing, an asset management fee on collected revenue, and a promote — a share of profits that only begins after investors have received their capital back plus a preferred return. Every figure is stated in the offering documents in plain language.
The structure is deliberate: we make real money only after you do. Seth also invests his own capital in each deal on identical terms to limited partners.
Yes to self-directed IRA and solo 401(k) capital — we work with the major custodians and can introduce you to one if you do not have an account. Note that leveraged real estate held in an IRA can generate UBTI; discuss it with your tax advisor first.
You can lose money, including all of it. Real estate is leveraged, illiquid and exposed to interest rates, insurance costs, local employment and the quality of our own judgement. A market can stop growing. A renovation can cost more than modelled. An exit can arrive in a bad year.
What we control is the margin of safety: fixed-rate debt with term beyond the plan, real reserves, markets we know, and an operator with personal capital in the deal. What we cannot control, we disclose — at length — in the offering documents.
Own an apartment building
without being a landlord.
No tenants to screen, no turnovers to schedule, no call at 2 a.m. You hold real equity in the asset and receive what it produces. The operating is ours.