The Realized Team’s Picks
Do You Have To Pay Capital Gains Tax When You Gift Property?
The act of gifting is a generous and meaningful practice that many investors or property owners engage in. Some gift for estate planning purposes, while others do it to pass down family businesses or homes to the next generation. However, this act does prompt givers and receivers to ask questions, such as whether or not capital gains taxes apply when gifting a real estate asset.
How To Avoid Capital Gains When Selling Land
Owning land is a great investment, with high potential for appreciation and generally good profit margins. However, investors must take into account capital gains when selling land. In particular, you must consider how the realized profits result in tax liability. While taxes are not avoidable in most cases, there are strategies you can use to defer. Below, Realized 1031 shares how to avoid capital gains when selling land.
Combining UPREIT and DST Structures: Strategic Considerations
Real estate investors are always seeking strategies that can help optimize their gains, diversify their portfolios, and manage their tax liability. Two approaches that offer similar benefits have emerged in recent times: Delaware Statutory Trusts (DSTs) and umbrella partnership real estate investment trusts (UPREITs). These vehicles have very similar benefits and structures, making them ideal for investors who want a streamlined path from one property to another.
How UPREITs Are Adapting to Changing Real Estate Market Trends
New technology, changing needs, and more selective demographics are causing upheavals in the real estate market. Umbrella partnership real estate investment trust (UPREIT) investors should be aware of the various strategies REITs are using as a response to these new developments. This way, investors can assess which UPREITs are best positioned for success as the landscape changes.
Using UPREITs for Estate Planning and Wealth Transfer
Investors have numerous options to consider when planning how their legacy will be passed down to their heirs. Of course, each individual has different priorities, such as tax efficiency, streamlined transfers, or wealth preservation. There is one approach that can address all these needs: the umbrella partnership real estate investment trusts (UPREIT). These structures allow property owners to exchange real estate holdings for operating partnership (OP) units, offering unique advantages for various types of investors.
What Is an UPREIT and How Does It Differ From Traditional REITs?
Investors have plenty of choices when it comes to the type of investment approach they take, particularly in the real estate sector. However, various options offer similar benefits, and some are so closely structured that confusion arises. Things can get complicated! Real estate investment trusts (REITs) and umbrella partnership real estate investment trusts (UPREITs) are two prominent examples.
Delaware Statutory Trusts and Urban vs. Suburban Investment Strategies
Delaware Statutory Trusts (DSTs) are investment vehicles that can own a wide range of underlying assets, and as such, investors find themselves paralyzed by the choices, wondering which one will offer the best opportunities and minimal risks. Two areas that are commonly debated are suburban and urban DST investments. Which one is better? Which one is more suitable for your current needs and long-term goals?
Can You Use DST Investments as Collateral for Loans?
Many investors use their investment properties as collateral for loans, helping them secure better rates or larger sums for new ventures and other financial needs. If you have DST investments, you might also be wondering if you can leverage them when trying to obtain financing. Can you use DST investments as collateral for loans? The answer is no.
Industrial and Warehouse Properties in an UPREIT: Opportunities and Risks
Investors have plenty of options when it comes to the niche of the umbrella partnership real estate investment (UPREIT) they’re going to enter. Two closely related areas that are gaining popularity are the industrial and warehousing sectors, especially with the rise of e-commerce, dropshipping, and last-mile distribution centers.
Sustainability and ESG in UPREIT Investments: Risks and Opportunities
The real estate industry is under growing pressure to adopt sustainable practices, support social responsibility, and reduce carbon emissions as the world evolves into a more environmentally conscious and socially aware global society. Umbrella partnership real estate investment trusts (UPREITs) are no exception, and many are following environmental, social, and governance (ESG) standards as frameworks for sustainable management.
