A DST For Your Cash Investment
*Update February 2019: Realized has completed it's first DST resale 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 Announces Development Of Secondary Market
Goal of improving liquidity of secondary sales. 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.
E-Commerce: Not the End of Retail Real Estate
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.
Home, Sweet... Rental?
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
Digging Beneath The QOF Clutter
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.
Retail-Based Clinics As Real Estate Investments
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.
The Flexibility Of A Drop And Swap
Partnerships can be an ideal legal structure for investors interested in acquiring, owning and operating real estate. A partnership consisting of two or more people can help boost capital availability and operational experience, while providing liability protection and tax pass-through treatment on your income tax return.
Capital Gains Strategies: Taking Charge Of Your Gains
Most investors are likely aware that geopolitical turmoil exerts its toll on the markets and, in turn, on their investment portfolio. A massive crisis is not even necessary to impact someone’s portfolio value. Market volatility is something every stock and bond investor has to learn to endure.
Qualified Opportunity Funds Vs. Opportunity Funds: Are They Interchangeable?
Googling the term “opportunity fund” leads to approximately 194 million results, and the definition of still is not explicitly clear when delving through these results. Adding to the confusion are the websites, such as Enterprise Community Partners (ECP), pointing out that some opportunity funds are based on “a new provision in the Tax Cuts and Jobs Act”, and are “a new class of investment vehicles that aim to responsibly drive much-needed capital in distressed communities throughout the nation.”1 In other words, ECP is talking about the newly passed Qualified Opportunity Fund (QOF) program.
Real Estate Return Objectives & Investment Constraints, Part 2
As we discussed in a previous blog, understanding of personal return objectives and investment constraints is often overlooked in real estate investing, although the same principles should apply as with any financial investment. In that blog, we focused on return objectives, what they are, and how they might impact your decision-making when it comes to investments. Also discussed was risk tolerance, which, when paired with return objectives, are used to determine the best investment “fit” for an investor.
