Investing in Opportunity Zones - What you Need to Know
Realized Chief Investment Officer Drew Reynolds recently shared details of the QOZ program created as part of the Tax Cuts and Jobs Act of 2017 and how investors may be able to defer and eliminate some capital gains tax obligations. We share a recap below, and you can read the complete article at thestreet.com.
How Commercial Real Estate Investing Can Add Balance to Your Portfolio
David Wieland, CEO and co-founder of Realized, recently authored an article in Kiplinger examining the benefits of adding real estate investments to your balanced portfolio. Read the recap below and the complete text at Kiplinger.com.
What is a 1031 Cooperation Clause and How Does it Work?
A 1031 exchange is much different than a straight sale or other type of real estate transaction. As such, it’s important for exchangors to inform all parties involved that the pending transaction will be part of a 1031 exchange because there are some extra steps both parties must take to ensure the exchange complies with Internal Revenue Service regulations.
How to Pass Your Delaware Statutory Trust Interests to Your Heirs
For many investors, Delaware Statutory Trusts (DSTs) are a viable way to own real estate without the active management required for direct ownership. In addition, DSTs may provide income and tax advantages. One significant advantage to investing in DSTs is the investor’s ability to use a 1031 exchange to move from direct investment to fractional ownership of commercial property.
Can Anyone Invest in Opportunity Zones?
The Opportunity Zones Program has provided a way to direct billions of dollars of capital toward urban renewal and revitalization projects in designated Qualified Opportunity Zones. Those investing in Qualified Opportunity Funds (QOFs) can also benefit from certain tax advantages.
Who Takes Title In a 1031 Exchange?
In a typical 1031 exchange, an investor decides to sell a property and reinvest the proceeds. If the property has appreciated during the time the investor has owned it, they will be responsible for paying capital gains taxes on the increase in the fair market value. Assuming that the investor has held the asset for more than one year, the taxes will be assessed at the long-term capital gains rate, which is typically lower than the tax rate for ordinary income but can still be as much as 20 percent.
How to Evaluate a Delaware Statutory Trust Sponsor
Participating in a Delaware Statutory Trust (DST) is an attractive opportunity for some investors. For example, the investor might be interested in expanding their geographic reach, reducing their active management of property, or transitioning into a different commercial property sector. Each of these goals may be achievable by investing in one or more DSTs.
What are the Major Components of a Net Lease?
In commercial real estate landlords sometimes choose to use a net lease, which requires tenants to pay expenses beyond their rent to contribute to the property's operational costs. The components of a net lease can include base rent, property taxes, insurance, and maintenance costs.
Who Owns the Property in a Real Estate Syndication?
Real estate syndication is an investment strategy that allows individuals to pool their resources to invest in larger, more complex real estate projects than they could on their own. In a real estate syndication, investors typically form a special purpose entity (SPE), which holds title to the property and manages the investment for the parties involved.
What is a Qualified Escrow Account?
A qualified escrow account offers a secure and reliable way to hold and manage funds for a specific purpose while also providing protection for all parties involved. Investors often use this type of escrow account in a 1031 exchange to hold the funds from the proceeds of a sale until the purchase of a replacement property is complete.
