REITs vs. DPPs: Similarities and Differences
Many real estate investment strategies are available to meet various needs, risk profiles, and investment goals. Two common approaches are real estate investment trusts (REITs) and direct participation programs (DPPs). Both strategies allow real estate exposure and potential income generation but have different structures, tax treatment, and risks.
1031 Exchange Rules: Vacation and Second Home Qualification
The IRS has relatively flexible rules on what types of property qualify for a 1031 exchange or like-kind swap. However, there are a few types of real estate that toe the line between investment or personal use property, leading to confusion among new and seasoned investors alike. These assets include vacation homes and second homes.
Can Anyone Invest in a Delaware Statutory Trust?
A Delaware Statutory Trust (DST) can be an attractive investment vehicle for owning investment real estate without management headaches. Investors interested in a 1031 exchange could find that a DST might be a good replacement property, as it’s easier to equate the value of fractional shares to that of the relinquished property.
The Pros and Cons of Direct Real Estate Investments
If you’re considering an investment in income-generating real estate, the correct strategy can lead to potential wealth generation. One such approach is a direct real estate investment.
Double-Net Lease: What It Is, How It Works, Triple Net Difference
Commercial real estate lease contracts come in a few variations, and one of these is the double-net lease. Through this arrangement, the tenant and landlord have similar proportions of financial responsibility, making this option attractive to investors who want a balance of income and costs. How does a double-net lease work? How does this compare to triple net leases? Below, Realized 1031 has shared a guide explaining this arrangement, its pros and cons, and more.
Reverse 1031 Exchange: Timeline, Rules, How It Works
For investors who want to defer taxes, 1031 exchanges remain an appealing option. Thanks to this like-kind exchange, you can swap one property for another without incurring tax liability. Since there is no sale, the IRS doesn’t levy capital gains taxes until you eventually make a constructive receipt. In this process, finding the replacement property comes after selling the relinquished one.
Tax Deferral: What it Is and How to Use It
If you own investment property, tax deferral strategies could be a viable method of maximizing wealth and optimizing financial planning depending on your investment goals and tax situation. Understanding tax deferral could help you determine approaches to dealing with income and appreciation in connection with your real estate portfolio.
What Happens to An Irrevocable Trust When The Grantor Dies?
Estate planning is crucial for preserving wealth and ensuring a smooth transition of assets. An irrevocable trust is often used as part of an estate planning strategy.
How To Buy Raw Land
Raw land is property that hasn’t been developed or built upon. It lacks buildings or structures, public utilities like sewer, water, or power and paved roads. It’s speculative and generally doesn’t generate income.
Setting Up a Financial Power of Attorney
If you own investment real estate, securing a financial power of attorney (POA) may be an important tool for protecting and managing your assets. A POA may authorize a designated individual to oversee real estate and other assets if you become unable to do so.
