In the chaos of closing on a sale of your property, the last thing most people are thinking about is choosing a qualified intermediary, or “QI” (a.k.a., an exchange “accommodator” or “facilitator”). After all, aren’t they all the same? Aren’t all qualified intermediaries “qualified”? The answer is emphatically, no.
A Single-Tenant Triple-Net property (also known as “Net-Lease”, “STNL” or “NNN”) refers to a property which is 100 percent leased to one tenant with a lease structure in which the tenant is responsible for all property-related expenses, leaving the landlord with minimal responsibilities. NNN properties are a popular choice for individuals who wish to invest in real estate, but may not have the time or desire to actively manage a property.
Delaware Statutory Trusts (DSTs) offer the opportunity to invest in commercial real estate passively. Such passivity means handing control over to someone else. Investing in a DST means you’ll be a hands-off investor, basically along for the ride. It’s the sponsor who will be making all decisions on your behalf. In most cases, you’ll have little to no input on those decisions. For some investors, that’s just fine as they don’t want the headaches that can come with more direct real estate investments.
One question we’ve been asked a lot lately by 1031 exchange investors is whether it’s possible to do a 1031 exchange into a Real Estate Investment Trust, or REIT. The short answer is: “you can do a 1031 exchange into a REIT if you follow a few steps.”
“Better safe than sorry” is an adage that often gets overlooked in the world of real estate investing. When evaluating a potential property, calculating the expected return is relatively easy, but understanding the associated risks is really difficult. What’s a real estate investor with a lower tolerance for risk to do?
When the IRS announced various deadline extensions in April 2020, a large bulk of the U.S. population breathed a collective sigh of relief. The extension of quarterly tax payments and filing deadlines from April 15 to mid-July provided wiggle room for taxpayers dealing with COVID-19’s economic fallout.
When individuals are younger, investment goals typically focus on wealth creation. In this situation, investors are able, and willing, to take on higher risk, with anticipation of higher rewards. Investors have a longer life span to experience the ebbs and flows of a capital market, and their risk appetite can prove very rewarding in the long game, albeit volatile in the short.
Ask any investment banker or financial planner about the best advice when it comes to building and maintaining a portfolio designed to provide steady returns, and the answer generally boils down to one word: Diversification.
Individuals acquire and own real estate because it is considered to be a good investment. When handled correctly, ownership of an office building can produce a steady cash flow, and a profitable return when the asset is sold.
There is a degree of risk when it comes to life, in general. Those who drive risk getting into accidents. Those who step off front-porch stairs risk tripping and falling. The good news here is that people are generally prepared to reduce, or mitigate, such risks. For instance, most will drive defensively, stopping at stop signs, looking before proceeding, and yielding the right of way. A home owner or house visitor will scope out any impediments before descending those porch stairs.
What is Investment Property Wealth Management?
