Welcome to The Paper Trail, where we follow the journey—my journey—through 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 deals—what 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 strategies—it’s about learning to follow the paper trail and doing the due diligence that separates the pros from the rest. Let's hit the trail.
358 | Tariffs, Labor Costs, and the Double Squeeze on Real Estate
Host Chris Seveney explains how rising tariffs and a labor shortage create a "double squeeze" impacting real estate construction economics for passive investors.
22 Apr 2026TRANSCRIPT
357| The Tax & Fee Anatomy of a Real Estate Syndication
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 Overview
01:21 Capital Stack Basics
02:24 Debt vs Equity Taxes
04:24 Gross vs Net Returns
06:51 K-1s Depreciation Recapture
10:50 Syndication Fee Breakdown
14:48 Fees vs Waterfalls Promote
19:07 Sponsors Cant Give Tax Advice
22:07 IRA Investing UBIT Trap
24:50 Multi-State Filing Costs
28:33 Choosing the Right CPA
30:42 Wrap-Up Key Questions
34:10 Final Thanks and Sign-Off
1 Apr 2026TRANSCRIPT
356 | AI IN REAL ESTATE: The Good, The Bad, The Ugly
In this episode of the Paper Trail Podcast, Chris Seveney takes a practical look at how AI is shaping real estate and mortgage note investing today.
Moving past the hype, he outlines where AI is already improving underwriting and valuation, where it may be narrowing investor advantage, and what structural risks are often overlooked as these tools become more embedded in the market.
Episode Timeline
00:00 AI Wake-Up Call
00:56 The Good: Where AI Is Already Adding Value
01:53 Faster Property Valuations
02:42 Smarter Borrower Risk Assessment
03:19 The Bad: Shrinking Information Advantage
05:20 Execution Becomes the Edge
06:03 The Overlooked Risk: Chip Dependency
06:56 Taiwan and Supply Chain Exposure
09:17 Avoiding Over-Reliance on AI
09:49 Why Note Investing Remains Durable
10:58 PropTech vs. Fundamental Models
12:08 Final Takeaways and Next Steps
Learn More
To learn more about how 7e approaches note investing, underwriting, and market strategy, visit:
https://7einvestments.com (https://7einvestments.com)
This content is for informational purposes only and is not intended as investment advice.
Inside a recent episode
358 | Tariffs, Labor Costs, and the Double Squeeze on Real Estate
Published 13 May 2026 · Transcript excerpt
[…] Developers who are on the fence about starting a project are staying on the fence and projects that were barely penciling at 6 % construction budget and now complete underwater. And that has downstream effect on supply also has impact on passive ventures that need to understand. […]
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