How To Evaluate an UPREIT Sponsor Effectively

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Investing in an umbrella partnership real estate investment trust (UPREIT) may be considered by some investors due to potential tax-deferral features and access to diversified real estate exposure. Like any type of investment, however, UPREITs will require thorough research to determine whether a particular offering aligns with your objectives. One aspect of due diligence is evaluating the UPREIT sponsor. The sponsor typically serves as the architect, manager, and long-term operator of the UPREIT, with responsibilities that can influence how the UPREIT is managed over time.

DST UPREITs: A Tax-Deferred Path Toward Potential Liquidity

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Liquidity and tax efficiency are among the most common concerns among clients with investment real estate. For advisors working with property-heavy portfolios, a challenge is helping clients transition out of illiquid holdings in a way that may help reduce immediate tax consequences. One approach available in certain cases is the DST-to-UPREIT strategy, which may offer a tax-deferred method of accessing REIT-backed equity exposure.

Using UPREITs vs. Direct 1031 Exchanges: Pros and Cons

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Various tax-deferred investment strategies are available to real estate investors, and two common options are direct 1031 exchanges and UPREITs. These both allow you to defer capital gains taxes under specific circumstances, but each carries distinct features, potential benefits, and limitations. Choosing the most appropriate strategy depends on your investment goals, risk tolerance, and other long-term financial objectives.

Can UPREIT Structures Help in Reducing Estate Taxes?

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Estate planning is a complex process with various goals, one of which is to help reduce estate taxes and ease the burden on heirs. There are a few strategies you can employ to support these goals, such as investing in an umbrella partnership real estate investment trust (UPREIT).

How UPREIT Transactions Can Help Mitigate Depreciation Recapture

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While depreciation deductions are a standard and useful component of real estate tax planning, depreciation recapture can create a significant tax liability if a property is later sold at a gain. There are ways to mitigate this tax liability, however, and one of the strategies is the Umbrella Partnership Real Estate Investment Trust (UPREIT). UPREITs are structured to allow property owners to contribute real estate in exchange for operating partnership (OP) units—potentially avoiding a taxable sale at the time of contribution

How Do You Analyze REITs?

Real estate investment trusts (REITs) can provide investors with access to income-producing real estate and may offer potential diversification within an investment portfolio. However, evaluating a REIT involves careful analysis of various performance and structural factors. One common metric investors consider is the rate of return, which can help compare REIT performance across different sectors and strategies.

Single-Family Rental REITs: What They Are and How They Work

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Due to rising property costs and decreased buying power, many Americans are now choosing to rent instead of owning a home. This shift in the housing market has led to the emergence of single-family rental real estate investment trusts, also known as SFR REITs. How do these investment vehicles work? What are the benefits and risks investors must consider? Below, Realized 1031 has shared a guide to help answer these questions. Keep reading to learn more.

What Is The Main Objective Of Investing In Equity REITs?

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Equity REITs (Real Estate Investment Trusts), which own and manage income-generating properties, appeal to investors looking to invest in income-producing properties, mainly in commercial real estate.

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.

An Explanation of UPREITS and Dividend Payments

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If you’re an investor interested in moving from direct to passive real estate ownership, contributing your property to a real estate investment trust (REIT) using the Section 721 exchange could be a viable tax-advantage strategy to help defer capital gains taxes.

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