You probably see them as you travel the interstates, highways and byways across the United States. Their low-level buildings boast many roll-up doors, painted in various bright shades of green, yellow, blue or orange. The on-site signs offer all kinds of inducements encouraging you to store your worldly goods there.
*Update February 2019: Realized has established its Secondary Market and has completed its first Secondary Market transaction.
Fractional 1031 investments are subject to the same benefits and risks as other real estate investments. However, the structure of fractional 1031 investments have their own unique characteristics.
Multifamily homes are being touted as great opportunities for investments, and for good reason. Real estate market trends point to an increase in renting over home ownership1, meaning that multifamily assets can provide steady income flow as occupancy rates increase. As a result, investors are looking to make multifamily ownership a part of their portfolio. According to Real Capital Analytics, apartment sales through the first half of 2018 totaled $69.9 billion, a 7.9 percent increase compared to the first of 2017.2
*Update February 2019: Realized has established its Secondary Market and has completed its first Secondary Market transaction.
Much of what we write about focuses on exchanging from a real estate holding into a Delaware Statutory Trust (DST). Thanks to Internal Revenue Code, Section 1031 and Delaware’s statutory law, you can defer capital gains taxes from the sale of your property, without stressing to find a “like” property in a 45-day period. Additionally, that DST gives you the perks of property ownership, while avoiding the “terrible Ts” of toilets, trash and tenants.
Realized has recently developed a secondary market to provide current Delaware Statutory Trust (DST) investors with an opportunity to sell their interests to accredited investors. While the secondary market provides no guarantee for sale, and DSTs are still classified as an illiquid investment, the market’s goal is to increase the liquidity of DST interests in order to make the investment process even easier and more investor-friendly.
Some real estate experts have been in “sky-is-falling” mode when it comes to brick-and-mortar retail. The media seems to be following suit, regularly reporting bankruptcy filings for, and closures of, retail chains. Take Toys R Us as a recent example, which announced it would close all its stores and liquidate inventory in March of 2018.
Investing in single-family homes, then turning around and renting those assets to other people, can be a good strategy for your portfolio. These properties can be easier to buy than their multifamily counterparts, and have become increasingly popular among potential tenants. Green Street projects that of the 3.9 million projected new renters that will come to market by 2020, nearly 40% will opt for single-family residences.1
The Qualified Opportunity Zone program offers a slew of potential benefits for investors facing capital gains taxes. Investing your gains in a Qualified Opportunity Fund can help defer taxes on those gains, while supporting economic growth in a low-income area.
At Realized Holdings, we spend a lot of time reminding clients that due diligence is essential when it comes to real estate investments. Due diligence is also important when it comes to investing in a Qualified Opportunity Fund (QOF) as part of the overall Qualified Opportunity Zone program (QOZ). This tax-deferral program allows you to invest capital gains into QOZs, with the added benefit of spurring lower-income community development.
Once upon a time, if you were ill or required a physical check-up, you likely paid a visit to your primary care physician. That doctor might have had his or her office on a hospital campus, or in a nearby medical office building; in fact, that hospital could have owned that building.
