What Are the Requirements to Form a Delaware Statutory Trust (DST)?
Delaware has long been known to offer a corporate-friendly environment, which offers benefits relating to tax liability, convenience, and legal protection in corporate affairs. Delaware Statutory Trusts were formed per the Delaware Statutory Trust Act, which was written to simplify the arrangement of a structured real estate transaction (or other assets).
What Is a Hybrid REIT?
REIT Investment Basics At the foundation, a Real Estate Investment Trust (REIT) owns, finances, or invests in real estate or real estate-related assets. Investors can buy shares in REITs as they would invest in equities, but they are purchasing an interest in a real estate portfolio or a particular asset. There are some specific characteristics of REITs, including the following:
What Are the Fiduciary Duties Involved with Delaware Statutory Trust (DST) Investment?
Within the Delaware Statutory Trust structure, there are typically two participants: trustees and beneficiaries. The DST offers management and ownership flexibility, but there are certain duties and obligations that must be fulfilled by each party.
What Is Structural Risk?
Contrary to what the name suggests, structural risk has nothing to do with the physical structure of the building. Structural risk refers to the financial structure of the investment and the rights that the structure provides to the individual participants. No real estate investment is invulnerable to risk, and investors must understand the potential dangers.
Can a Tenant in Common Rent or Lease Their Share of Property?
A Tenant in Common arrangement, also known as Tenants-in-Common, or TIC, involves a shared ownership of a property. In this type of arrangement, each owner owns a specific “piece” of the asset; and many times, those pieces, or shares, can be of unequal sizes. This is also known as fractional ownership, and it can help investors to better diversify their portfolios, or to have access to higher quality assets.
Can a Tenant In Common Mortgage Property?
Gathering three or more people into a tenancy in common (TIC) arrangement can be one way to buy and hold real estate. This type of set-up can help investors secure better-quality real estate, with a potentially higher targeted cash flow.
Can an S Corp Do a 1031 Exchange?
A 1031 exchange isn’t just for a solo investor seeking to defer capital gains taxes on the sale of a commercial investment property.
What Is Asset Allocation in a 401k?
Asset allocation in your 401(k) helps manage investment risk. You don’t need to be a seasoned investor to have a say in how your assets are going to be invested; however, you should be aware of some of the basics.
What Is Replacement Cost Risk?
Before investing in real estate, investors typically evaluate the property — which is a process that determines the economic value of an investment — and more accurate valuations can help investors make better decisions. When looking at cost, replacement cost is a common part of property valuation and investors look at this to determine whether the property is under or overvalued. Even with proper property valuation, there are many risks associated with investing in real estate.
How to Record Payments to Qualified Intermediaries Via Form 1042-S
Form 1042-S is sent to non-U.S. residents who have income in the U.S. Income is from U.S.-based entities. This income includes distributions from real estate properties or funds. A Form 1042-S must be filed for each type of income reported.
