You may be familiar with the structure of a tenant-in-common arrangement, better known as a TIC. Specifically, under a TIC structure, each co-tenant, or co-owner, has an undivided, fractional share in a particular property.
You can transform a single-family home into a multifamily investment through a conversion where you split the home into multiple rental units. However, there are things to consider before deciding to start a conversion.
When it is time to retire, one of the major concerns is whether there will be enough money to live comfortably throughout retirement. It is stressful to not know if you will need 10, 20, or maybe even 30 to 40 years of retirement funds.
Investing in real estate comes with various risks. The ability to categorize risk allows investors to better understand and analyze those risks. One such risk is called idiosyncratic risk. It is the risk associated with an individual property. In this article, we’ll dive into what idiosyncratic risk is and how it can be calculated.
There’s good reason why more than 1 million businesses and nearly two-thirds of all Fortune 500 companies1 are incorporated in the State of Delaware -- the state is internationally recognized for its advanced statutory laws and judicial decisions regarding the governance of Delaware business entities.
Delaware Statutory Trusts (DSTs) are complex financial investments that can provide individuals with access to ownership of commercial real estate properties that they would not be able to own on their own. Some DSTs own properties similar to those held by large institutional investors like pension funds, REITs, and insurance companies. DSTs are considered securities and are subject to regulation as such.
You do not have to live in your investment property, but if you do reside there for all or some of the year, there are different classifications for tax purposes.
A DST, or Delaware Statutory Trust, is a trust created under Delaware state law that owns property (the trust, the investors, and the properties can all be located outside of Delaware). A DST often provides individual investors with access to properties they may not be able to obtain individually. The DST Sponsor is the individual or company that creates the trust to hold the assets and takes care of the issuance of the shares to investors.
Real estate investments -- specifically, real estate you buy and hold in an effort to generate income -- can be one way to build wealth and generate passive income. But one question that might be asked when it comes to this type of asset is, how much is too much? In other words, how many rental properties can you own?
An essential part of the 1031 exchange is the inclusion of a qualified intermediary, or QI. That QI could be considered the cornerstone of a successful exchange; its job is to hold proceeds from the sale of the relinquished property, until closing on the replacement property. If you are the exchanger in the process, your QI ensures you never touch those funds.