What Is Crowdfunding, And How Is Realized Different?
Real estate crowdfunding is a topic that has garnered a good deal of attention in the past few years. Positioned as the channel that allows anyone to access an investment that previously had significant barriers to entry, crowdfunding is hailed for its ability to unlock the real estate market for the average investor. Through a simple internet transaction, investors can allocate money into real estate assets or investment funds that formerly were only available to well-heeled and well-connected investors. While Realized is similar to crowdfunding in that we also provide access to large commercial real estate investments and utilize the internet for marketing, that’s where the similarities end.
New Federal Guidelines Give Opportunity Zones More Time
Due to the COVID-19 pandemic, the government has given investors and developers an extension for deploying capital and starting projects in Opportunity Zones (OZ). Before the deadline extension, investors were required to deploy 90 percent of their capital into OZ projects. To ensure these deployments were met, the government checked where OZ-related funds were going twice each year. With recent modifications to the rules by the Treasury Department and Internal Revenue Service, the new extension allows investors to hold onto those funds until June 30, 2021.
Key Steps for Meeting The July 15th Filing Deadline
Even though our world may feel like it is at a standstill, many property owners are still navigating the time-constrained process of a 1031 exchange. However, in response to the chaos of the pandemic, the IRS issued Notice 2020-23, which extended deadlines for time sensitive tax actions.
Are April & May Rents Setting Unrealistic Expectations?
April and May’s rents are down compared to the previous year but not by a wide margin. However, with uncertainty about the economy due to the pandemic, it’s unclear what to expect in the coming months. Unemployment benefits can’t sustain out-of-work residents indefinitely. The path forward isn’t entirely clear at this point.
I Need A Backup Strategy For My 1031 Exchange
You have a property picked for a 1031 exchange, but want to create a backup plan in case it falls through. In this article, we’ll walk through a few simple options that can be added to your 1031 forms and used as a backup.
Diversification Considerations When It Comes To DSTs
Investment diversification combines different financial products into a single portfolio. This, in turn, spreads the potential negative impact of specific risk across the portfolio. In plain English, this means that owning several assets, that are impacted differently by certain economic forces, ensures that a portfolio is not overly exposed to one type of risk.
Landlord, No More: A Look At Passive Real Estate Investing
Let’s say that you own a rental house, residential duplex, self-storage facility, or office building. And, let’s also say that, while you appreciate the cash flow you’re receiving from the property, you’re tired of the trash, tenant, toilet, and management issues that are part and parcel with ownership. Basically, you like the returns, but dislike being a landlord.
Industry Trends for Qualified Intermediaries to Consider as Filing Deadline Approaches
As we approach the July 15, 2020, Internal Revenue Services filing deadline amidst the global pandemic, our team at Realized wanted to share some thoughts and statistics that we are seeing in the market. Our goal with this data is to help Qualified Intermediaries (QIs) and their clients better navigate the next three weeks leading up to the deadline.
The Risks of Investing in Single Tenant NNN Properties
“Better safe than sorry” is an adage that often gets overlooked in the world of real estate investing. When evaluating a potential property, calculating the expected return is relatively easy, but understanding the associated risks is really difficult. What’s a real estate investor with a lower tolerance for risk to do?
Can Foreign Investors Do 1031 Exchanges?
Can foreign investors take advantage of IRS §1031 to execute a tax-deferred exchange when selling their U.S. real estate assets? The short answer is yes. The longer answer is a bit more complex. Congress enacted the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) to impose a tax on foreign investors selling real property assets in the United States. The act requires that anyone who buys real estate assets from foreign persons or entities must withhold a prescribed part of the purchase price, which would normally go to the foreign seller. Why exactly? To ensure that the foreign seller pays capital gains taxes when they are due.
