What is a "Springing LLC"?
Commercial real estate is often subjected to a variety of micro and macroeconomic factors that can adversely affect property performance. Look no further than the retail and hospitality shutdowns that happen as a result of the coronavirus pandemic, and the ensuing work-from-home trend that continues to roil office markets throughout the country.
What Are The 10% and 30% Rules for REITs?
When you dig into how REITs operate, they become fairly complex investments. Most of this isn’t as important for investors but is important for REIT operators. We will look at two specific restrictions or rules that REITs must follow.
What is The Deferral Period for Opportunity Zones?
The Qualified Opportunity Zone Program (QOZ) allows investors to “do good” by putting their capital gains into economically challenged areas. The program, introduced in 2017, also offers various tax benefits to QOZ investors. One of these is the step-up in basis, which ended in late 2021.
Delaware Statutory Trust (DST) Debt Liabilities: What You Need to Know
There are many angles to view how Delaware Statutory Trust debt liabilities are used. We can view it from the investor’s perspective, the lender, or the DST sponsor. DST investors should be familiar with all of them to fully understand the potential benefits of DST liabilities and advantages.
Delaware Statutory Trust Liquidity: What You Need to Know
Our previous blogs outlined the various potential benefits of a Delaware Statutory Investment (DST), especially in the role of a 1031 exchange replacement property. DSTs can help with portfolio diversification, allowing you to acquire fractional shares in high-quality real estate you otherwise might not be able to afford. They’re also passive investments. As a DST beneficiary, you don’t have to worry about managing real estate or obtaining mortgages. The DST sponsor takes care of it all.
Revenue Ruling 2004-86: What You Need To Know
If you’re investing in a DST via a 1031 exchange, you’ll benefit by having knowledge of Revenue Ruling 2004-86. The cornerstone ruling allowed 1031 exchanges into DSTs (Delaware Statutory Trusts) while solving the problem of using TICs (tenant-in-common) as a 1031 exchange vehicle. In fact, TICs have faded in favor of DSTs when doing a 1031 exchange. Read on to learn more important details about this ruling.
How Do REITs Make Money?
In previous blogs, we've touched on the idea of passive income for investors. One way to pursue passive income is the Real Estate Investment Trust or REIT. Unlike other investments that strive to provide passive income, such as the Delaware Statutory Trust, REITs are positioned as securities. In other words, investors put their capital (via sponsors/management firms) into real estate companies, potentially receiving income in return.
What is a Zero Coupon Delaware Statutory Trust?
Potential tax benefits are one reason you might invest in a Delaware Statutory Trust as a 1031 exchange replacement property. Other reasons might include portfolio diversification, access to quality real estate assets, and potential cash flow.
What are the Opportunity Zone Benefits for Developers?
Developers can reap multiple rewards from Opportunity Zones. The advantages come in three forms: significant tax savings, effective capital raising, and strategic marketing leases. The primary allure is the substantial tax savings; when a developer has capital gains, they can invest directly into a Qualified Opportunity (QO) Fund in a relevant project. By doing so, they can tap into the full range of tax benefits that Opportunity Zones offer, maximizing their investment.
721 UPREIT Exchange: The 6 Things You Need to Know
The 721 umbrella partnership real estate investment trust (UPREIT) exchange is a great alternative for real estate investors who want to defer capital gains taxes without having to follow a strict time frame like the 1031 exchange. The investor may also be attracted to all the other benefits that a 721 UPREIT exchange offers that the 1031 exchange might not be able to fulfill.
