The Realized Team’s Picks
Liquidity Solutions for Delaware Statutory Trust Investors
Increasing numbers of investors are now recognizing the benefits of Delaware Statutory Trusts (DSTs), including the tax deferral, passive income, and diversification that come along with them. However, some still hesitate because of one major challenge: the illiquidity of DSTs. Having your capital stuck for five to seven years or more can make you feel trapped and apprehensive.
Using a 1031 Exchange to Transition Into Senior Housing
As you age, you may begin looking for investments that offer long-term stability instead of high-risk, high-reward promises. Among the many strategies available, transitioning your portfolio to senior housing through 1031 exchanges is a viable option. This move may align with your changing lifestyle while also offering benefits like tax deferral.
Common Legal Pitfalls in UPREIT Transactions and How To Avoid Them
Many investors now recognize the benefits of umbrella partnership real estate investment trusts (UPREITs), such as tax deferral and passive income. However, you shouldn’t just hop on the trend without fully understanding exactly what’s on the other side. There are many legal pitfalls that unaware investors might fall into, resulting in loss of profits or even their tax-deferred status.
Governance in UPREITs: What Investors Should Look For
When entering an umbrella partnership real estate investment trust (UPREIT), your assessment should go beyond the underlying properties or the promised monthly dividends. A savvy investor should also look at the UPREIT governance. Knowing how these entities are managed, how decisions are made, and how transparency is demonstrated can help you determine if a certain UPREIT fits your needs. Below, Realized 1031 has shared features and characteristics to look for.
UPREIT Partnership Agreements: Key Terms and What To Watch Out For
Umbrella partnership real estate investments (UPREITs) are a tax-advantaged strategy that allows you, as an investor, to contribute your real estate assets in exchange for operating partnership (OP) units. Before entering this type of investment vehicle, however, it’s critical to understand the documentation involved. For UPREITs in particular, the partnership agreement matters significantly. This document governs the operating partnership and dictates your rights, distribution of dividends, and many other partnership functions.
Evaluating Liquidity and Exit Strategies in UPREIT Investments
Upon your successful contribution of a property into an umbrella partnership real estate investment trust (UPREIT), receiving operating partnership (OP) units may feel like the end of the line. You start earning passive income without the burden of active management. However, entering the UPREIT is simply one step of the entire investment process. At some point, you’ll want to liquidate or exit so you can use your capital for other investments or personal use.
Can You Exit a Delaware Statutory Trust Early?
When you enter a Delaware Statutory Trust (DST), you get to enjoy benefits like passive income, hands-off involvement, and tax deferral — when paired with 1031 exchanges. These investment vehicles become powerful tools, but they do come with one key limitation: a lack of liquidity.
Office Properties in UPREITs: Managing Vacancy and Market Risk
Recent global events and changing work patterns have had significant effects on certain sectors, with office property being one of the most keenly affected. That said, it’s understandable that investors interested in entering umbrella partnership real estate investment trusts (UPREITs) can be apprehensive if the entity owns office buildings.
Why Multifamily Properties Are Popular in Delaware Statutory Trusts
Entering a Delaware Statutory Trust (DST) is a strategic investment approach that allows you to enjoy benefits such as passive income and diversification. DSTs own underlying properties that generate income, and these assets may belong to various sectors. Today, DSTs that focus on multifamily homes have become sought-after investments thanks to a few key features. Below, Realized 1031 has shared reasons why multifamily properties are popular in Delaware Statutory Trusts. Let’s take a closer look.
Investing in Healthcare Real Estate Through Delaware Statutory Trusts
Many investors want assets that offer long-term stability and resilience, and medical properties are one of the asset classes that can accomplish both. There is one more strategy that adds benefits like tax-deferral and passive income: accessing medical real estate via DSTs. In this guide, Realized 1031 showcases how investing in medical properties through Delaware Statutory Trusts can become a powerful strategy.
