UPREIT vs. REIT
Real estate investment trusts (REITs) are a popular investment vehicle for those who are interested in the potential benefits that come with real estate without actually having to buy and manage the property. Alternative REIT structures emerged to allow for different types of investors. One of these structures is known as an umbrella partnership real estate investment trust (UPREIT). How do REITs and UPREITs compare? We’ll cover the basics of each as well as their benefits and drawbacks.
How is a Delaware Statutory Trust Taxed?
Investing in commercial real estate through a Delaware Statutory Trust can provide many benefits. DST investors purchase fractional shares in a variety of institutional-grade commercial assets they likely wouldn’t be able to afford on their own, such as large multi-family apartment complexes, class A office buildings, or free standing retail buildings with large national franchise tenants. These assets can help diversify your real estate holdings, as well as potentially provide monthly income that can be sheltered from taxation through interest and capital depreciation deductions.
What is a Landlord's Responsibility in a Residential Lease?
As a real estate investor, you may be starting off with residential properties. There are numerous advantages to residential real estate, particularly for those beginning to build their portfolios:
What is a Keogh Retirement Plan?
In 1962, the Self-Employed Individuals Tax Retirement Act was established, otherwise known as the Keogh Act. The Economic Growth and Tax Relief Reconciliation Act dissociated the distinction between other plans and the Keogh plan. Since this Act, Keogh retirement plans are alternatively referred to as HR-10s or qualified retirement plans.
Does Land Registry Show Tenants In Common?
There are several legal structures in which two or more people can hold title to real property. The most common joint-ownership structures are tenants in common and joint tenants.
How Many Years of Retirement Should I Plan For?
Planning for retirement can seem like a daunting task, but estimating how many years you plan to spend in retirement can help you decide how to maximize your retirement plans.
Delaware Statutory Trust Investment Property Offerings - How They Work and What You Need to Know
As a real estate investor seeking to maximize return and manage tax obligations, you may be interested in Delaware Statutory Trust offerings if you examine options for fractional participation. Like Tenant in Common investments, Delaware Statutory Trust participations are accepted by the IRS to reinvest the proceeds from the sale of a property and defer the realization of capital gains taxes. This status means that you can use a 1031 exchange to enter into or exit from a DST. Unlike a TIC structure, in a DST, the ownership of the properties is held by the trust, and the investors are beneficiaries of the trust. TICs are limited to 35 investors, while DST organizations do not restrict the number of participants.
What is Cash Flow and How Do You Generate Cash Flow in Real Estate?
Cash flow is essential to any business. It is the difference between the money coming in and the money going out. That said, there are many ways to generate cash flow in real estate. First, let’s discuss what cash flow is, and what it comprises. Cash flow in real estate is the amount of profit you bring after expenses.
Do Tenants in Common Owe Fiduciary Duties?
There are many different ways investors can co-own commercial real estate, and the rights and responsibilities vary within each type of ownership structure.
How Does Realized Work With Qualified Opportunity Zones?
As we’ve pointed out in previous blogs, the Opportunity Zone program is still very new. And, as we’ve also pointed out, the best way to find an experienced, reputable Qualified Opportunity Fund (QOF) manager/sponsor, is to examine the previous track record.
