All Forum Posts by: Bernard Reisz

Bit of a hybrid between "institutional" and standard syndicator. Institutional DSTs have many benefits, but the investor is typically accepting a lower cap rate and eating lots of costs (whether they're visible or not). This is a result of a combination of factors (regulatory, selling process, size, etc.). There are some relatively large capital raisers that have extensive experience with 1031 investors that are big enough to have solid deal flow and are not as constrained as institutional providers. These providers are typically using TIC structures for their 1031 exchange investors. (Much to be said about DST vs TIC from a 1031 exchange compliance perspective...)

@Zachary Bellinghausen This is all too common. Very common for exchangers to struggle to find replacement property. Depending on the amount of taxes being deferred through the exchange, there may be merit to relaxing your underwriting guidelines somewhat. 

While it seems safe to assume you're not interested in getting into an "institutional" DST or NNN asset, there are other sponsor types that accept exchange funds on terms that may be more attractive to you. As we want clients' exchanges to be successful, we're always making intros to help exchangers expand their "target bank."

@Kolin Goff Kudos on doing solid tax research prior to seeking out a Cost Seg service provider via BP.

Recommend reviewing all of @Michael Plaks' extraordinary posts on the topic of Cost Seg. They go well beyond anything else in Google's top hits on the topic. (Michael - Thanks for the mention!)

More importantly, get your tax pro on board. If you don't have a tax pro yet, recommend getting one. It'll help you assess the true impact of Cost Seg on your tax liability and you'll get a better cost seg deliverable. We consistently find that communicating with clients' tax accountants adds immense value to the Cost Seg process. 

Being that there are a myriad of Cost Seg inputs and outputs - many of which are highlighted in @Michael Plaks post here and elsewhere - that benefit from your tax accountant's involvement, we always encourage investors to involve their tax pro in the Cost Seg process from the get-go. We find that the Cost Seg outcome is always enhanced, in every regard, with accountant involvement. 

It's the special individuals like @Michael Plaks that make BP such a fantastic resource. He consistently shares info that is both objective and expert-level in ways that precious few others do. Michael - Thanks for the mention!

@Connor Chanter Based on your post, sounds like you've done the homework on this. Kudos! Nonetheless, strongly recommend reading through each of the resources Michael linked to, before getting a Cost Seg study done, as they highlight many of the factors to be considered with regard to Cost Seg.  

Being that there are a myriad of Cost Seg inputs and outputs - many of which are highlighted in Michael's posts - that benefit from your tax accountant's involvement, we always encourage investors to involve their tax pro in the Cost Seg process from the get-go. 

and @Sean Graham You guys need to, at least, add some winking emojis to your cost seg posts here (and elsewhere)! 😉😉😉

@Michael Plaks Honored by the mention! Thank you!

@Ben S. As is highlighted by Michael's phenomenal posts on the subject, when exploring cost seg, there needs to be a focus on the cost seg service itself, as well as on how cost seg fits into your overall tax strategy. 

Best way to move forward is by getting a free cost seg feasibility analyses from reputable provider and then assessing how accelerating deductions impacts your tax liability.

@Thelma Bal Best content on Cost Seg, bar none, is @Michael Plaks' posts on the subject. He's linked one of them, but he has many more posts on this topic and they're all worth reading. 

To make the most informed choice, get a Cost Seg feasibility analysis (free) which illustrates the expected tax deductions and then assess how those deductions impact your tax liability, based on your tax profile. (Michael's posts are a great resource for this, but still no substitute for working directly with a tax accountant that's well-versed in all the ins-and-outs of this.) 

@Monica Juarez-Gonzales Adding to prior note that @Michael Plaks has created the best resources and content, bar none, to help investors understand how to approach Cost Seg. Much of that content is posted on BP. While it's not nearly as good as talking to Michael himself, reviewing those resources will make you a vary savvy and informed consumer of Cost Seg services.

@Michael Plaks Kudos to you for creating this post and countless others that provide infinite value to the real estate investor community! They are unparalleled and I gain so much from them! Glad for the opportunity to "hang on to your coattails" and add some value, too.