The Realized Team’s Picks
Questions to Ask Your Tax Advisor Before Starting a 1031 Exchange
Before starting a 1031 exchange, ask your tax advisor whether an exchange makes sense for your situation, how much tax you may actually defer, what deadlines and identification rules apply, how debt and closing costs could create taxable boot, and what records and reporting will be required. Clear answers upfront can help you avoid expensive mistakes.
How to Create a Real Estate Exit Strategy Before Selling an Investment Property
Creating a real estate exit strategy before selling an investment property means deciding, in advance, what you want the sale to accomplish and how you plan to handle taxes, timing, debt, and reinvestment. A good exit strategy helps you avoid rushed decisions, preserve more equity, and align the sale with your income, estate, and portfolio goals.
1031 Exchange vs. Opportunity Zone Investment: Which Tax Strategy Fits Your Goals?
A 1031 exchange generally suits investors who want to stay in real estate, preserve their full equity, and defer taxes by rolling over into another like-kind property. An Opportunity Zone investment may fit investors who want to reinvest capital gains more flexibly, accept a longer hold, and potentially exclude future appreciation on the new investment.
1031 Exchange vs. Cashing Out: How to Compare Your Options After a Property Sale
A 1031 exchange usually makes more sense when you want to keep investing and preserve more equity by deferring capital gains and depreciation recapture taxes. Cashing out may be the better fit when liquidity, simplicity, or a change in investment direction matters more than tax deferral.
What Is a 721 Exchange and How Does It Differ From a 1031 Exchange?
A 721 exchange lets an investment property owner contribute real estate to a REIT operating partnership in exchange for operating partnership units, while a 1031 exchange swaps one investment property for another like-kind property. Both can defer taxes, but they lead to very different ownership, control, liquidity, and planning outcomes.
How to Compare Multiple Delaware Statutory Trust Investments
Comparing multiple Delaware Statutory Trust investments starts with a simple rule: do not focus solely on projected yield. A sound comparison looks at the sponsor, the property, the tenant and market, the debt, the fees, and the exit plan so the investment fits your goals, risk tolerance, and 1031 exchange needs.
What Types of Real Estate Can a Delaware Statutory Trust Own?
A Delaware Statutory Trust can own one or more commercial real estate properties, and the range is broader than many investors assume. Common examples include multifamily apartments, office, industrial, retail, self-storage, medical office, student housing, hospitality, and senior living properties.
Can a Delaware Statutory Trust Help Simplify Rental Property Management?
Yes. A Delaware Statutory Trust can simplify rental property management by shifting day-to-day operating responsibilities from the investor to the DST sponsor or trustee. For owners who want real estate exposure without directly handling tenants, repairs, leasing, or property oversight, a DST may offer a more passive structure.
Delaware Statutory Trust vs. Direct Rental Ownership: Key Differences for Investors
A Delaware Statutory Trust and direct rental ownership can both provide exposure to income-producing real estate, but they serve different investor needs. A DST is generally a passive, fractional ownership structure often used in 1031 exchanges, while direct rental ownership offers more control, more responsibility, and more hands-on operational risk.
Can You Use a DST to Diversify a 1031 Exchange Into Multiple Properties?
Yes. A Delaware Statutory Trust can let you diversify a 1031 exchange across multiple properties by dividing your exchange proceeds among more than one DST offering. That can help reduce concentration in a single asset, location, or tenant, but it also means accepting a passive, illiquid investment structure with sponsor oversight.
