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Meet Bill Rapp

NMLS ID # NMLS # 228246

William Rapp, based in Houston, TX, US, is currently a Capital Advisor at Medallion Funds, bringing experience from previous roles at eXp Commercial, NEXA Mortgage, Viking Enterprise LLC and Sun Realty - Houston. William Rapp holds a 1997 - 2001 BBA in Finance @ Texas A&M University. With a robust skill set that includes REO, Sellers, SFR, FHA financing, Reverse Mortgages and more, William Rapp contributes valuable insights to the industry.

The Client Experience

Great experience purchasing our first home! Bill was easy to reach and always able to answer any questions or concerns.

27185 Astoria Brook Ln, Katy, TX 77494, USA

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💼 Inside the 1% Playbook: Structuring Real Estate Loans for Maximum Tax Efficiency 📊

📊 How the 1% Structure Real Estate Loans for Tax Efficiency 💰

Bill Rapp, Commercial Mortgage Broker

January 23, 2026•3 min read

📊 How the 1% Structure Real Estate Loans for Tax Efficiency 💰

💼 Inside the 1% Playbook: Structuring Real Estate Loans for Maximum Tax Efficiency 📊

How the 1% Structure Their Real Estate Loans for Tax Efficiency

Most borrowers focus on interest rates.
The top 1% focus on structure.

High-net-worth individuals, seasoned investors, doctors, and business owners understand that the real advantage in real estate comes from how the loan is structured, not just how cheap the rate looks on paper. The right structure can legally reduce taxes, improve cash flow, and accelerate long-term wealth.

As a mortgage broker, this is where strategy matters.

1. Asset-Based Lending Over Income-Based Lending

The 1% prioritize asset performance, not W-2 income.

Instead of traditional underwriting that relies on tax returns, elite borrowers often use:

·DSCR loans

·Bank statement loans

·Commercial cash-flow underwriting

These structures allow:

·Qualification based on property income

·Preservation of tax-efficient write-offs

·Continued use of aggressive depreciation strategies

This is especially powerful for investors and self-employed borrowers who intentionally minimize taxable income.

2. Separating Properties by Entity Structure

Wealthy borrowers rarely hold real estate in their personal name.

They use:

·LLCs

·Series LLCs

·Trust structures (where appropriate)

Why this matters:

·Cleaner accounting

·Enhanced liability protection

·Easier expense allocation

·More flexibility with depreciation and cost segregation

Loan structure and entity structure must align—or tax advantages are lost.

3. Long-Term Fixed Debt to Maximize Depreciation

The 1% favor long-term fixed-rate debt when depreciation is the goal.

Why?

·Predictable payments

·Stable cash flow

·Full utilization of depreciation and interest deductions

This approach is common with:

·DSCR loans

·Portfolio commercial loans

·Select non-QM residential products

Short-term debt may look cheaper—but long-term structure wins on taxes.

4. Strategic Use of Cash-Out Refinances

Rather than selling and triggering capital gains, high-net-worth investors:

·Refinance

·Pull equity tax-free

·Reinvest into new assets

This allows:

·Capital redeployment without taxable events

·Portfolio growth while deferring taxes

·Preservation of stepped-up basis strategies long-term

Loan timing and structure are critical here.

5. Aligning Loan Strategy With the CPA and Advisor Team

The 1% never structure loans in isolation.

They coordinate with:

·CPAs

·Financial advisors

·Estate planners

A strong mortgage broker understands how to:

·Structure debt to complement tax strategy

·Avoid disqualifying deductions

·Support long-term planning goals

This is where a broker beats a bank—flexibility and strategy.

Why Mortgage Structure Matters More Than Rate

Banks sell rates.
The 1% buy structure.

When loans are designed correctly, borrowers gain:

·Lower effective tax burden

·Higher after-tax returns

·Stronger long-term wealth outcomes

This is the difference between qualifying for a loan and engineering a portfolio.

Work With a Mortgage Broker Who Understands Strategy

At Medallion Funds, we specialize in:

·DSCR and asset-based lending

·High-income professional mortgage strategies

·Investor and portfolio loan structuring

·Coordinating financing with tax efficiency in mind

If you want your loans structured like the 1%—not the average borrower—it starts with the right conversation.

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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